Bank of Thailand to let baht swing with market factors

[webfact]

 

By Panithan Onthaworn

 

The Bank of Thailand (BoT) said on Friday that it would allow the baht to fluctuate in line with market factors. However, action is required if the currency witnesses extreme volatility, it said.

 

This week the baht has weakened to its lowest level in almost seven years, approaching 36.32 baht against the US dollar. 

 

BoT senior director Daranee Saeju said in a briefing that the baht has weakened modestly in comparison to regional currencies, and this has been driven by the rise of the US dollar.

 

Full story: https://www.thaienquirer.com/41593/bank-of-thailand-to-let-baht-swing-with-market-factors/

 

-- © Copyright Thai Enquirer 2022-07-09

 

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[ukrules]

48 minutes ago, webfact said:

The Bank of Thailand (BoT) said on Friday that it would allow the baht to fluctuate in line with market factors.

Didn't they do this before? Around 1996 or something like that ????

[KhunLA]

This should be very interesting.  See how far they let it go ... ????

[Isaan sailor]

Yeah, they let the Baht swing alright.  It swung all the way down to 35.87 on USD last night.  36 was so yesterday.. 

[KhunLA]

I'm not ready to panic yet ... down ฿0.19 over 24 hr period ????

 

Edited July 8, 2022 by KhunLA

[sammieuk1]

Looks like they define swing at 0.01 looking at the pound ????

[KhunLA]

[khwaibah]

Bank of Thailand are Cooking the Books along with SET.

 

[talahtnut]

The BoT control the Thai Bath with one of these decision makers

I have one attached to my bike.

 

[thailand49]

Yes,  swing with the market but next line will take action???? If it doesn't swing their way? 

Now that they have stepped in on the subject watch it start to get stronger. It was headed to 37 now at 35. 

Thai, the art of war,  give the illusion let it swing then mulipulated a bit in your favor.

[RichardColeman]

Can but hope they are using up all their reserves and the baht will crash in the coming months/year

[smedly]

6 hours ago, webfact said:

The Bank of Thailand (BoT) said on Friday that it would allow the baht to fluctuate in line with market factors

my interpretation of that is that they were manipulating the value before this, something I have been saying for a couple of years 

 

so what are they hoping for - that it will be tracking the US $

 

the best thing the baht could do is drop in value - Thailand relies heavily on exports and tourism both would be boosted with a lower BAHT

[smedly]

1 hour ago, thailand49 said:

Yes,  swing with the market but next line will take action???? If it doesn't swing their way? 

Now that they have stepped in on the subject watch it start to get stronger. It was headed to 37 now at 35. 

Thai, the art of war,  give the illusion let it swing then mulipulated a bit in your favor.

determining the value of a currency cannot be done with just one comparison - it has to be a collection of currencies (basket), in the grand scheme of things the BAHT has remained neutral when compared to $ sterling and EUR - the $ has gained recently against them all

[hotchilli]

6 hours ago, webfact said:

The Bank of Thailand (BoT) said on Friday that it would allow the baht to fluctuate in line with market factors. However, action is required if the currency witnesses extreme volatility, it said.

Instead of the usual manipulation?

[shackleton]

Good if you have USA $ ????

Not so good on Global British pounds ????

[Isaan sailor]

Baht has swung up—we get that.  Now, oh clairvoyant BoT, can you please let it swing down?

[Cake Monster]

6 hours ago, ukrules said:

Didn't they do this before? Around 1996 or something like that ????

Yes they did.

And also in 1996 there was way too much borrowing against poorly priced assets

Just saying

Edited July 9, 2022 by Cake Monster

[placnx]

6 hours ago, ukrules said:

Didn't they do this before? Around 1996 or something like that ????

You are talking about the Tom Yam Gung crisis in 1997. Then the Bank wasted its reserves trying to hold up the Baht, until it couldn't any longer. Back then the Baht got to 55 per USD. Lesson learned, it seems.

[thailand49]

3 hours ago, smedly said:

determining the value of a currency cannot be done with just one comparison - it has to be a collection of currencies (basket), in the grand scheme of things the BAHT has remained neutral when compared to $ sterling and EUR - the $ has gained recently against them all

You know more than me, what I do know is unscientific  on going small bet with some regular expats living here. 

Everytime I read in the Bangkok or internet complaint or suggestions from government leaders,  banks etc regarding the strength or weakness. I put my bet that now it will swing a bit the other way regardless 9-10 that is the case. When it was brought up a few days before here it was 36.40, just happen I ship Wise money over and today it is what. ????

 

[earlinclaifornia]

Only the Bank's exchange rate matters. Weekend flux is nothing new

[zzaa09]

8 hours ago, RichardColeman said:

Can but hope they are using up all their reserves and the baht will crash in the coming months/year

Might be chancy or it might be beneficial.

The theoretical ideals behind floating a currency exchange rate is determined by the manipulated health and fluctuation of the global economy.......which is largely based on fantasy and false value - especially as such applies to particular economies/cultures. 

 

Why not make up one's own rate......as most have been doing anyway for generations. The whole process is quite silly and delusion filled. There isn't any real wealth anywhere and largely based on nothing. 

 

A noted factor that is looming for real and is considered - an increasing trend among much of the influential trading/economic block to remove itself from relying on the U.S. dollar as an inclusive measuring stick. This reality is upon us currently and will forever change the manner in which we view wealth and value.......most certainly the silly illusion of comparative currency exchange rating.

 

[Xonax]

About time that BOT realizes, that they cannot dictate the US Dollar to follow the Thai Baht.