Thai Exports Benefit From Baht Depreciation

[webfact]

 

 

by Paul Rujopakarn

    

BANGKOK (NNT) - The weaker baht has been allowing Thailand to export more goods even as industries that rely on imports are being negatively impacted. As of Monday (June 13th), the Thai baht traded at 34.81 against the US dollar.

 

Industry Minister Suriya Juangroongruangkit made the announcement, citing information from the Office of Industrial Economics (OIE).

 

The minister noted that businesses which rely heavily on imports will especially feel the impact of the weakened Thai baht. He also suggested that operators exercise caution when dealing with exchange rates, adding that they should carefully manage their resources.

 

Macroeconomic models indicate that a further baht depreciation of 5% will actually increase Thai Real GDP (RGDP) by 0.4%, and bump industrial sector RGDP by 0.35%. It will also help expand the export and import sectors by 2.14% and 1.94%, respectively.

 

Private consumption and investment are meanwhile projected to increase by 0.21% and 0.31%, respectively, with the 5% depreciation also expected to cause inflation to rise by 0.57%.

 

 

-- © Copyright NNT 2022-06-13

 

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[ezzra]

I'd say the baht had depreciated greatly now having to fork out 3-4 large bills just to take out one them lovelies back home with you.. Aha, i ;olg for the good ol' days when the baht went much further...

[ThailandRyan]

Good for importing cash to Thailand via transfer into my account from the US.  Just wired in another 6 months worth, should probably double down.  The issue is the cruddy interest rates here....

[Berkshire]

9 minutes ago, webfact said:

Macroeconomic models indicate that a further baht depreciation of 5% will actually increase Thai Real GDP (RGDP) by 0.4%, and bump industrial sector RGDP by 0.35%. It will also help expand the export and import sectors by 2.14% and 1.94%, respectively.

Exactly.  The weak baht will also help the ailing tourism industry.  More inflation?  That seems to be a worldwide phenomenon.  Hoping to see more downside with the THB.

[ThailandRyan]

1 minute ago, ezzra said:

I'd say the baht had depreciated greatly now having to fork out 3-4 large bills just to take out one them lovelies back home with you.. Aha, i ;olg for the good ol' days when the baht went much further...

Wow, once upon a time many moons ago when a purple was the top dog, that would get you a friend for a night, but then maybe more if you took her a traveling and then upon kicking her to the curb handed her a few maybe 4 of those purples after paying for everything else.  The mamasan was also happy with getting 2 or 3 of the brown notes....

[DaLa]

Do Thai companies only export in US$ ?   I Import from the UK......Baht/£ August 2021  46.41     Baht /£  Today (13th June 2022) 42.74.  8% increase in a year. 

 

Offset against my pensions unfortunately.

[ChaiyaTH]

O please, it went up and down in the same range like so many times already. It is not worth to even mention unless the EUR THB hits 41+ (and similar for all other pairs and what they used to have).

 

I'm not buying it until I see that rate for a month stable.

Edited June 13, 2022 by ChaiyaTH

[dinsdale]

Aussie $ heads south against 'weakening' Thai Bt. 

[hotchilli]

4 hours ago, webfact said:

The weaker baht has been allowing Thailand to export more goods

Well that ain't rocket science.

[Harveyboy]

48 minutes ago, hotchilli said:

Well that ain't rocket science.

am i missing something...What weak Baht...look at euro baht..sad very sad 

[hotchilli]

12 minutes ago, Harveyboy said:

am i missing something...What weak Baht...look at euro baht..sad very sad 

Possibly weak Baht in Thailands eyes.

[hotchilli]

4 hours ago, ChaiyaTH said:

O please, it went up and down in the same range like so many times already. It is not worth to even mention unless the EUR THB hits 41+ (and similar for all other pairs and what they used to have).

 

I'm not buying it until I see that rate for a month stable.

As you say, the Thai baht fluctuates in fractions of Baht..

over the last 3 years it has largely stayed the same...

Amazing Thailand.

 

[Isaan sailor]

Sink, baby, sink.

[mikeymike100]

6 hours ago, ezzra said:

I'd say the baht had depreciated greatly now having to fork out 3-4 large bills just to take out one them lovelies back home with you.. Aha, i ;olg for the good ol' days when the baht went much further...

Maybe your being overcharged? LOL

[jacko45k]

On 6/13/2022 at 2:50 PM, hotchilli said:

Well that ain't rocket science.

Cheaper durian for the China market?

[bert bloggs]

Well its getting stronger against the pound daily.

[CrunchWrapSupreme]

I just got 35 baht to the buck this morning. 6500 for under $190. Not bad for what I thought was a slow week of online teaching.

[ThailandRyan]

7 minutes ago, CrunchWrapSupreme said:

I just got 35 baht to the buck this morning. 6500 for under $190. Not bad for what I thought was a slow week of online teaching.

On the rise 

[Isaan sailor]

Baht down 2% on USD over two weeks.

US stocks down 10% over two weeks.

These are the best of times.

These are the worst of times.

[hotchilli]

3 hours ago, jacko45k said:

Cheaper durian for the China market?

The Chinese buyers inside Thailand seem to have the price under control prior to export.

[jacko45k]

18 hours ago, hotchilli said:

The Chinese buyers inside Thailand seem to have the price under control prior to export.

My Mrs just gifted me one which is a good size, it would have been impolite to ask how much it was. My 3rd this season.. I am doing well. 

[Isaan sailor]

Hello and goodbye to 35 on the USD.  Baht bounced right back up to 34.81 today.

[jacko45k]

1 hour ago, Isaan sailor said:

Hello and goodbye to 35 on the USD.  Baht bounced right back up to 34.81 today.

Did the USA not just bump up interest rates yesterday....... I am expecting 35 to become 'consolidated'.......

[ThailandRyan]

26 minutes ago, jacko45k said:

Did the USA not just bump up interest rates yesterday....... I am expecting 35 to become 'consolidated'.......

It never makes any sense as to how the baht claws it's way back down .....manipulation possibly....

Edited June 16, 2022 by ThailandRyan

[jacko45k]

1 hour ago, ThailandRyan said:

It never makes any sense as to how the baht claws it's way back down .....manipulation possibly....

Take a look now... a smidgin under 35. 

[hotchilli]

5 hours ago, jacko45k said:

My Mrs just gifted me one which is a good size, it would have been impolite to ask how much it was. My 3rd this season.. I am doing well. 

My missus knows better than to gift me a durian.

[Eloquent pilgrim]

Certainly not been depreciating against the pound sterling; last October I got just over 45 to the pound bringing out a lump for my visa extension. I can't visualise getting near that over the next few months or so. 

[Mavideol]

5 hours ago, Isaan sailor said:

Hello and goodbye to 35 on the USD.  Baht bounced right back up to 34.81 today.

week end tendency.....  it will keep diving  555

[jacko45k]

2 hours ago, hotchilli said:

My missus knows better than to gift me a durian.

Well it is some effort for mine as she hates them and the smell, so it is a great compliment! My return favour is to catch the odd snake in the garden, which she is terrified of!

[placeholder]

On 6/13/2022 at 3:55 PM, hotchilli said:

As you say, the Thai baht fluctuates in fractions of Baht..

over the last 3 years it has largely stayed the same...

Amazing Thailand.

 

Really?

https://www.xe.com/currencycharts/?from=USD&to=THB&view=5Y