Thai Baht heads to near 37 Baht/US$, as BoT defends its use of $19 billion in defending the currency

[webfact]

 

By Narudon Daisachulshu

As Thai Baht heads towards level not seen since late September 2006 questions are being asked whether the Bank of Thailand (BoT)’s statement that the 1.35 trillion Baht disappearance of the international reserves was just ‘revaluation’ of asset or has the central bank been actively propping the currency to keep it artificially stronger than it should be.

 

Earlier this week, the BoT revealed that Thailand’s reserves stood at a staggering US$240 billion, but this number was down from US$278 billion seen earlier this year and that the reason for the decline in the currency was that the BoT was revaluing all the assets because most of the assets it holds are in its diversified portfolio had depreciated as the US Dollar has strengthened against all global currencies.

 

The rising interest rates in the United States has prompted the US Dollar to strengthen to levels not seen in more than a decade, and this has prompted many countries to scramble to keep their currencies from depreciating.

 

Full story: https://www.thaienquirer.com/44229/thai-baht-heads-to-near-37-baht-us-as-bot-defends-its-use-of-19-billion-in-defending-the-currency/

 

-- © Copyright Thai Enquirer 2022-09-16

 

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[ThailandRyan]

They were propping up the Baht by exchanging USD for THB to assist in keeping the THB stifled, but it has not truly been working. One wonders where the USD to Thb would be if they had not played the shuffling game.....Lets see where the USD floats to as time goes on.

[Gottfrid]

Why hide it? Why the need of questions? We all know they have been active in currency manipulation. There is no need to deny that fact. If they really look into it, they will find mountains of evidence and digital footprints.

[morrobay]

From searches it is not $240 billion. Some said below $200 billion.  https://m.investing.com/economic-calendar/thai-forex-reserves-(usd)-1326

[spidermike007]

Considering how well many economies around the world have bounced back after covid, Thailand gets a failing grade in that regard. The level of mismanagement is astounding. Get rid of the dinosaurs, and let us usher in some talent and capable leadership. It is desperately needed at this time, and the Thai people need to muster up some conviction and passion for change. 

[StayinThailand2much]

1 hour ago, ThailandRyan said:

They were propping up the Baht by exchanging USD for THB to assist in keeping the THB stifled, but it has not truly been working. 

If it worked, it certainly won't for long. 

[Onerak]

Still waiting for the days when 40 BHT will be one USD as It was when I had to flee my nomadic living in Europe to Thailand. I have also witnessed the dark days when one US was mere 29 BHT. More importantly I am waiting for interest rate to go up so that I can borrow money from CC at 3-4% and earn in saving at 6% as I used to before the 2008 housing crash. 100K borrowed from CC at 3% used to net me 2,000 USD or 80,000 BHT at 40 BHT per USD with zero risk. 

[ikke1959]

Thailand has only positive news about their economics and rebound of tourism.... So why worry? even bad news will make the THB stronger and without manipulation,  as they claim

[StayinThailand2much]

11 minutes ago, spidermike007 said:

Considering how well many economies around the world have bounced back (...) Thailand gets a failing grade in that regard. The level of mismanagement is astounding (...)

Spot on. Mismanagement has cost Thais dearly. Thailand and Malaysia had about the same GDP/capita a few decades ago, and look what the latter's economic standing is, and what Thailand's is, despite of huge income from mass tourism...

[spidermike007]

2 minutes ago, StayinThailand2much said:

Spot on. Mismanagement has cost Thais dearly. Thailand and Malaysia had about the same GDP/capita a few decades ago, and look where the latter's economic standing is, and where Thailand's is, despite of huge income from mass tourism...

Yes, Thailand has been moving backwards, for quite some time. The goon squad has turned the once Tiger of SE Asia, into a whiny little alley cat, pining for some food, and searching for some scraps. 

[sammieuk1]

A 1.35 Trillion disappearance is all perfectly normal a dead friend is looking after it in Toblerone land ????

[mania]

Quote

Thai Baht heads to near 37 Baht/US$, as BoT defends its use of $19 billion in defending the currency

Why defend it?

During troubled times for economies many a currency was happy to race to the bottom

Talk about increased tourism? More will come knowing they get more bang for their buck

Exports? Many countries buy more when they too get more product for their currency

 

The only to suffer is who? Thai travelers?

 

You think Thai sellers in the night markets care if the dollars now buying more of their products were exchanged for  37 instead of 33 baht when exchanged?

 

Save your reserves BoT let your currency seek its level & enjoy the shoppers who will now return & the increased exports

 

 

 

[Caldera]

Bound to tank even further. I wouldn't be surprised if we'll see 40 baht again pretty soon.

[John Drake]

17 minutes ago, mania said:

The only to suffer is who? Thai travelers?

The one percenters  in Thailand who buy property, businesses, and sports teams in the West. And who pay excessive tuition for their children to go to Western universities for third rate graduate degrees.

[JayClay]

12 minutes ago, Caldera said:

Bound to tank even further. I wouldn't be surprised if we'll see 40 baht again pretty soon.

How many times have I read quotes like this over the last 10 years...?

 

As always, I hope you're right. As always, I doubt you are.

[sanuk711]

15 minutes ago, Caldera said:

Bound to tank even further. I wouldn't be surprised if we'll see 40 baht again pretty soon.

Here we go again----so the Baht is tanking...................... go ask anyone who is not American & has to live on an overseas income what they think of that assessment.

[ThailandRyan]

7 minutes ago, John Drake said:

The one percenters  in Thailand who buy property, businesses, and sports teams in the West. And who pay excessive tuition for their children to go to Western universities for third rate graduate degrees.

So western universities only produce Third rate graduate degree's? In what world is that? or are you talking about the degree studies that Thais actually get a degree from?  I know many Thai's who have graduated from Universities in the US with degree's in Agriculture, Science and Technology.

[John Drake]

1 minute ago, ThailandRyan said:

So western universities only produce Third rate graduate degree's? In what world is that? or are you talking about the degree studies that Thais actually get a degree from?  I know many Thai's who have graduated from Universities in the US with degree's in Agriculture, Science and Technology.

Because many of my students from Mahidol were going to the UK to get degrees from places like Oxford Brookes, which is third rate, as are a lot of the former polytechnics that got a facelift a decade or so ago. I've held full time faculty positions in Germany, the US, and Thailand. I've seen what happens. There is a pipeline from Thailand to the UK for worthless graduate degrees. 

[spidermike007]

38 minutes ago, mania said:

Why defend it?

During troubled times for economies many a currency was happy to race to the bottom

Talk about increased tourism? More will come knowing they get more bang for their buck

Exports? Many countries buy more when they too get more product for their currency

 

The only to suffer is who? Thai travelers?

 

You think Thai sellers in the night markets care if the dollars now buying more of their products were exchanged for  37 instead of 33 baht when exchanged?

 

Save your reserves BoT let your currency seek its level & enjoy the shoppers who will now return & the increased exports

 

 

 

You forget the average Thai. Millions are struggling right now. The exchange rate does not matter to them. But, the economy does. And it is hurting here. 

[ThailandRyan]

3 minutes ago, John Drake said:

Because many of my students from Mahidol were going to the UK to get degrees from places like Oxford Brookes, which is third rate, as are a lot of the former polytechnics that got a facelift a decade or so ago. I've held full time faculty positions in Germany, the US, and Thailand. I've seen what happens. There is a pipeline from Thailand to the UK for worthless graduate degrees. 

Name the studies then that are worthless in which these degrees are being classed as by you please?  Should be interesting to know what you consider as a worthless degree, such as art...etc...

[Onerak]

52 minutes ago, StayinThailand2much said:

Spot on. Mismanagement has cost Thais dearly. Thailand and Malaysia had about the same GDP/capita a few decades ago, and look what the latter's economic standing is, and what Thailand's is, despite of huge income from mass tourism...

When was Malaysia GDP/capita equaled to Thailand's GDP per capita. In 1990, Malaysia stood at 2,500 USD vs Thailand's $1500 USD per capita. The problem with Thailand is it heavily depended on low skilled Tourism industry and brothels fronting as bars throughout the country. No country has prospered by inviting old low skilled and low income foreigners to marry poverty stricken local girls from the bars in exchange for marriage visas.

[itsari]

21 minutes ago, sanuk711 said:

Here we go again----so the Baht is tanking...................... go ask anyone who is not American & has to live on an overseas income what they think of that assessment.

The baht is not tanking it is the US dollar that is increasing because of the federal reserve has increased interest rates . Many expect a 1 percent increase at the next federal reserve meeting later this month . If that happens things will get interesting . 

[KhunLA]

I drew this up yesterday, out of curiosity.  In case anyone interested how it performed the past 22 yrs, and what USA administration was in at the time.  My conclusion ... I hope Biden runs & wins in 2024 ????

 

[Chelseafan]

42 minutes ago, John Drake said:

The one percenters  in Thailand who buy property, businesses, and sports teams in the West. And who pay excessive tuition for their children to go to Western universities for third rate graduate degrees.

 

And importers! That Chateau Lafite / Mercedes aint cheap you know....

 

[internationalism]

if BOT has such large surplus they should make a good use of it by lending to key export industries (including hospitality/tourism). That is to stimulate economy.

For the last half year they were defending bht and it did't work well.

 

[John Drake]

33 minutes ago, ThailandRyan said:

Name the studies then that are worthless in which these degrees are being classed as by you please?  Should be interesting to know what you consider as a worthless degree, such as art...etc...

I'll give you one: business. I was continually asked to write 15-20 letters of recommendation at the end of every trimester to third rate graduate business schools. Amazingly, none of the students was ever rejected. If you want a real discussion on this issue, btw, you should attempt to be more honest, instead of trying to bait me with phrases such as "should be interesting." Why should it be interesting for you, in actuality? I doubt that it is, because you're trying to set things up for endless argumentation. 

[sanuk711]

17 minutes ago, spidermike007 said:

You forget the average Thai. Millions are struggling right now. The exchange rate does not matter to them. But, the economy does. And it is hurting here. 

And its not hurting anyone anywhere else ..is it ?....... I mean people from your country are not worried about the highest inflation for nearly 50 years.   People from my country (& the rest of Europe) are not worried about --Do they buy oil & keep warm or buy food this winter. China is possibly looking at its biggest Property crash in its history.

And some people on here seem to think that Thailand shouldn't be caught up in this looming world recession--because its all Thailand fault.

 

The short term future all over the world, is not looking so great--but I know where I would rather be at the moment.

[ThailandRyan]

14 minutes ago, John Drake said:

I'll give you one: business. I was continually asked to write 15-20 letters of recommendation at the end of every trimester to third rate graduate business schools. Amazingly, none of the students were ever rejected. If you want a real discussion on this issue, btw, you should attempt to be more honest, instead of trying to bait me with phrases such as "should be interesting." Why should it be interesting for you, in actuality? I doubt that it is, because you're trying to set things up for endless argumentation. 

In actuality, I am trying to ascertain whether or not your perceived Third rate degrees have any use in today's society.  Your use of an example, such as writing a letter of recommendation to assist in obtaining entrance to a business curriculum of studies, seems to have caused heartburn for you.  Are you saying that a degree in business from these supposed third rate universities is any less usable than a degree in business from Princeton?  At the end of the day it is what the graduate decides to do with their degree that either makes it usable or not, and not the University they graduated from.  Many folks from those low brow universities, you call third rate, are currently running companies in the business sector, while many from a prestigious university are not using their degree at all.  I believe you are trying to degrade certain students who you have assisted and have done nothing with the help you gave them.  There are margins in all universities where degree's are not used in the fields earned.  I never used my degree, which I earned in my field of study Natural Resource Planning and Interpretation, and instead decided on a career in a different field.  Did earning that degree prove useful in some aspects of my 34 year career field I chose and in my life, well in my view yes it did.

[sanuk711]

9 minutes ago, KhunLA said:

My conclusion ... I hope Biden runs & wins in 2024

Looking at your chart KhunLA....shouldn't your hope be ...I wish Bush would make a come back----

[mommysboy]

The dollar is really strong at the moment- against most currencies.