Prawit stuns the cabinet demanding a ฿35 to the dollar rate and action from the Finance Minister

[MrJ2U]

5 hours ago, Fairynuff said:

An overvalued USD helps nobody but dollar carrying tourists and expats. In the short to medium term it causes more harm than good to the world economy.

Exact same with baht manipulation.

 

Prawits demands clarify the stupidity of the aged leader.

 

The Baht has been overvalued for years.  Now with these remarks it shows underling manipulation. This will most likely result in reprisals from the US. 

 

 

[Pla Simon]

Seeing as Droopy runs @ 75 satang to the baht, it shouldn't be too hard to convince him that he's still winning....

Edited September 22, 2022 by Pla Simon

[Bangkok Barry]

Does he have any qualifications as an economist? Just asking.

[Kalasin Jo]

5 hours ago, VinnieK said:

Weak  (or strong baht) have both pros and cons.

A weak baht is good for exports and tourism but bad for foreign debt servicing.

So ,I believe Prawit's statement was out of concern that govt and private companies will have to pay more for debt servicing. 

Anyone else sense an economic storm coming btw?

That storm is coming everywhere. In fact it's arrived.

[metisdead]

Inflammatory posts have been removed.

[The Theory]

Another "target" ? ????????????

that's just a wish, nothing more. 

[StayinThailand2much]

Well, they could:

 

A. Use their huge foreign currency reserves to buy up large quantities of their own currency, or

 

B. Complain to the U.S. President.

 

 

Anyhow, I wish them good luck for both endeavours. ????

Edited September 22, 2022 by StayinThailand2much

[StayinThailand2much]

31 minutes ago, foreverlomsak said:

well there's China, India and Russia 

China, the CCP, and the country where our overlords reside... Yes, three!

[StayinThailand2much]

3 hours ago, dogfish180 said:

Because he has the IQ of a 6 year old!

That's an insult to 6-year-olds!

[StayinThailand2much]

7 hours ago, webfact said:

Baht’s depreciation is now being driven by a wider difference between interest rates in the United States and Thailand which had gone beyond a critical point at 150 to 175 basis points even before Wednesday’s rise and which could see it grow wider by up to a further 175 basis points by the end of this year if the Federal Reserve maintains its hawkish stance and with projected Thai interest rate rises (...)

Can Thailand achieve a 35-baht exchange rate to the dollar? Probably, but the BoT would need to 'top' the FED, and raise Thailand's interest rates to, say, 20 or 25%...

 

(Might lead to other 'problems', though.)

Edited September 22, 2022 by StayinThailand2much

[KhunLA]

Want to not do that, until after the first week of October.  Let me get 1 DD @ 37 this year ... ????

[Caldera]

His silly remarks will only sink the baht further. Well done old chap.

[Skeptic7]

kon ngo. 

[ikke1959]

Thailand does not manipulate the THB. This is the proof of it

[NoshowJones]

4 hours ago, dogfish180 said:

Because he has the IQ of a 6 year old!

Just a typical soldier, leading a country when his IQ is about equal to the average Thai walking in the street.

[NoshowJones]

1 hour ago, Bangkok Barry said:

Does he have any qualifications as an economist? Just asking.

He was probably educated at a Military Academy the same as the unelected suspended PM he is deputising for. It is therefor hard to imagine economy being a Military Academy subject.

[Bangkok Barry]

4 minutes ago, possum1931 said:

He was probably educated at a Military Academy the same as the unelected suspended PM he is deputising for. It is therefor hard to imagine economy being a Military Academy subject.

And, in time-honoured Thai government fashion, it doesn't stop him mouthing off about something he is unqualified to comment on ????

[Gandtee]

9 hours ago, John Drake said:

Or Thailand could promote this exchange rate with American tourists. Oops. Forgot. They want to focus on Russians instead.

But there wont be any. They will have all been conscripted into to army. I think Putin will ban any males and then females maybe from leaving Russia.

[Mavideol]

1 hour ago, KhunLA said:

Want to not do that, until after the first week of October.  Let me get 1 DD @ 37 this year ... ????

x2.... wait until the 3rd at least 555

[Cake Monster]

Clearly, Prawit is becoming very concerned about all the Capital outflows from the Country.

9 hours ago, webfact said:

Baht’s depreciation is now being driven by a wider difference between interest rates in the United States and Thailand which had gone beyond a critical point at 150 to 175 basis points even before Wednesday’s rise and which could see it grow wider by up to a further 175 basis points by the end of this year if the Federal Reserve maintains its hawkish stance and with projected Thai interest rate rises. The situation ultimately may lead to the Bank of Thailand being forced to raise interest rates higher and faster than it wants given the capital movement we are now witnessing thus supporting the acting PM’s call for action.

However, Thailand has a huge Bear in the room.

Its called Household Debt, and Cooperate Debt..

The BOT is stuck between a rock and a very hard place. They are reluctant to raise Interest Rates due to all the Household Debt, much of which is against poor asset Loans such as Vehicles and White Goods.

This is the direct result of the Governments " initiative " during Covid to keep the Economy ticking over, and this " initiative " has now come back to bite them in the rear end.

Even a small rise in Interest Rates will push many people, and Business's  over the edge into NPL, and Managed Loans Etc, such is the amount of Debt that has been issued by the Banks.

13 % of GDP issued over the past 6 Months alone in just Household Debt.

To not raise Interest Rates, means the Capital outflows will increase even further meaning the Countries Credit Rating will fall, and their own borrowing will become more expensive.

It will also mean a Country of high Inflation, which in turn will deter Tourists, and add extra costs onto production of export Goods.

Interesting times ahead.

[Mavideol]

3 minutes ago, Cake Monster said:

Clearly, Prawit is becoming very concerned about all the Capital outflows from the Country.

However, Thailand has a huge Bear in the room.

Its called Household Debt, and Cooperate Debt..

The BOT is stuck between a rock and a very hard place. They are reluctant to raise Interest Rates due to all the Household Debt, much of which is against poor asset Loans such as Vehicles and White Goods.

This is the direct result of the Governments " initiative " during Covid to keep the Economy ticking over, and this " initiative " has now come back to bite them in the rear end.

Even a small rise in Interest Rates will push many people, and Business's  over the edge into NPL, and Managed Loans Etc, such is the amount of Debt that has been issued by the Banks.

13 % of GDP issued over the past 6 Months alone in just Household Debt.

To not raise Interest Rates, means the Capital outflows will increase even further meaning the Countries Credit Rating will fall, and their own borrowing will become more expensive.

It will also mean a Country of high Inflation, which in turn will deter Tourists, and add extra costs onto production of export Goods.

Interesting times ahead.

not so as "sleepy" will take care of everything, he's an economic genius  (sarcasm intended 555) 1st suggestion is Baht at 35 to USD, let's wait, second suggestion coming soon to a theater near you  555

[perryjr2]

Guess this is a way to get attention without any loss of credibility since we will forget he mentioned this tomorrow.

[Mavideol]

2 minutes ago, perryjr2 said:

Guess this is a way to get attention without any loss of credibility since we will forget he mentioned this tomorrow.

can't do, it will back fire as he just admitted to currency manipulation

[John Drake]

11 minutes ago, Gandtee said:

But there wont be any. They will have all been conscripted into to army. I think Putin will ban any males and then females maybe from leaving Russia.

It's bizarre in its way. The one country Thailand has not targeted with a tourism campaign is the US. In the past seven or eight months, they've announced campaigns to bring the British, the Scandinavians, the Germans, South Americans, Malays, the Indians, the Chinese, and now the Russians (again). And as you say, the Russians are about to be penned up. They Chinese already have been penned up with no sign they'll be let loose any time soon. But that is who Thailand targets. One of the fastest ways to turn around that dollar/baht exchange rate would be to get American tourists buying baht with their dollars. But Thailand clearly doesn't want Americans to come here.

[Burma Bill]

10 hours ago, webfact said:

to bring about a rate of ฿35 to the US currency.

Oh really? Last weekend my Khmer friends here in Siem Reap, crossed the northern border at O'Smach to go shopping in Ubon Ratchathani. The exchange rate was 37 baht for 1$. They will not be happy bunnies. Go back to sleep Prawit!!

[Dave0206]

7 hours ago, ftpjtm said:

Rolex prices are through the roof!

If you had to buy foreign expensive watches depreciation on baht would be a problem but not if you can "borrow " them from friends who then die.I wonder if big watch collection had to be returned to the deceased estate????

[brianthainess]

7 hours ago, robsamui said:

Is the buffoon even aware that there are more nations out there than Thailand and the USA?

Yes but not where they are.

[PETERTHEEATER]

.........The intervention of General Prawit is reported to have drawn a mirthful response from ministers around the cabinet table.......

 

Career advancement for Cabinet members is now on hold. ????

[brianthainess]

Fix the UK pound at 45 and the AUD at 26 while your at it please.

[Chelseafan]

8 hours ago, ozz1 said:

Isn't that currency manipulation they should look at other currencies besides the US   he is making desicions I thought he was the just care taker pm

Absolutely and if I am not mistaken Thailand is already on the US radar for manipulation.