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

[RichardColeman]

11 hours ago, island coconut said:

If Biden is the reason that my US Dollar income has risen by nearly 20% this year

And so has the cost risen about 20% for everything Americans need to buy internally ! I dare say yes, it is good for all the yanks here - or those paid in $ - but I imagine a trip back to the US will be a real culture shock

[MaiDong]

Can you imagine being in such a position of power that you can actually make your money grow by telling people to grow your money for you?

[ericthai]

12 hours ago, AsianAtHeart said:

I've been told that what happened in 1997 was that a few elite among the Thai bankers had been corrupt (one of whom was recently in the news having been sentenced for his part), and had deprived the banks of most of their holdings in foreign currencies.  Not being backed by the gold standard, and having no ability to buy back their baht, when the IMF floated some baht, Thai banks were unable to purchase back their own currency--quickly devaluing it.  The baht went from 32 baht/dollar to about 57 baht/dollar overnight.  This had little to do with any particular foreign currency as a standard against the baht--the baht could have been redeemed in pounds, marks, or other currencies.  It had everything to do with corruption and improper preparation for market stability of the Thai currency.

 

Because Thailand's economy is central to many economies in the region, the entire Southeast Asian region suffered a tremendous blow--reaching as far as to Australia.

 

When we're all propping each other up, it's dominoes when one goes down.

sorry, some wrong info... The baht was at 25THB not 32THB and it didn't go to 50THB overnight, this happened over a period of months and actually didn't go over 50THB until Jan/Feb 1998. I dont recall it hitting 57,  I think that highest exchange rate I got was 54

 

as for what caused the collapse, there were many issues. mainly corruption, but mainly over investment in properties with several local economies investing in Thailand's real estate market. When things start going down investors started selling out and the house or cards fell. Actually the final straw happened when the Thai Bank ran out of reserves (due to capital outflow from investor selling)  and unpegged the THB to the USD to let it float.  

 

[AsianAtHeart]

6 minutes ago, ericthai said:

sorry, some wrong info... The baht was at 25THB not 32THB and it didn't go to 50THB overnight, this happened over a period of months and actually didn't go over 50THB until Jan/Feb 1998. I dont recall it hitting 57,  I think that highest exchange rate I got was 54

I was here.  It happened just as I said.  I saw it at 57 only a few weeks after I had exchanged at 32.  In Chiangmai.

[ericthai]

1 minute ago, AsianAtHeart said:

I was here.  It happened just as I said.  I saw it at 57 only a few weeks after I had exchanged at 32.  In Chiangmai.

understood you where here, but you said it happened overnight, now you say a few weeks.

 

Seems we are remembering things differently. I'm sorry, but I dont recall it jumping from 32 to 50 even over a few weeks. I recall it taking months for it to move up. From what I remember it started in the 30's mid July or so, then around oct/nov hit the 40's and then early 98 it hit the 50's then feb/march stayed in the 40's and then gradually declined.

 

My timeline might not be exact but I'm sure it's close as I remember watching the exchange rate daily, tying to decide to transfer money or wait for it to go up. 

 

 

[novacova]

It’s the e-communist-y stupid.

 

The commies have infiltrated the USA minds and government and are deliberately destroying the global economy. And it’s most tough on the poorer countries. What has happened to Laos is a direct result of US policies, plain and simple.

[jacko45k]

17 hours ago, Chelseafan said:

One of the fastest ways would be to depreciate the baht to help exporters. The world is about to go into recession IMHO and as the demand for consumer goods weakens, some export markets will struggle. We've already moved most of our shrimp sourcing from Thailand  to Vietnam where product is a lot cheaper for the same quality. 

And yet Sterling depreciating substantially is being regarded as a disaster here.. can't have it both ways. 

[AsianAtHeart]

8 hours ago, ericthai said:

understood you where here, but you said it happened overnight, now you say a few weeks.

 

Seems we are remembering things differently. I'm sorry, but I dont recall it jumping from 32 to 50 even over a few weeks. I recall it taking months for it to move up. From what I remember it started in the 30's mid July or so, then around oct/nov hit the 40's and then early 98 it hit the 50's then feb/march stayed in the 40's and then gradually declined.

 

My timeline might not be exact but I'm sure it's close as I remember watching the exchange rate daily, tying to decide to transfer money or wait for it to go up. 

 

 

None of us, at least not me, knew the exchange rate was going to do what it did.  I entered Thailand in August of 1997.  I exchanged dollars to baht within three weeks of that I am sure.  I don't remember the exact dates, but at that time that I exchanged, I got 32 baht/dollar.  It cannot have been more than two months, I think--my memory has it at about 6 weeks, but I was not expecting a change, mind you, and was not watching it every day--it had gone up to 57.  I clearly remember seeing the 57.  That may have been the peak, or maybe 58--I don't remember.  But my recollections would place this nearer to October or November, not January.  Back in those days, I suppose, the internet was less developed and we probably have no online records by which to confirm our memories.  Memories can play tricks on us at times, but the reason I remembered this so clearly is because, at the time, I remember regretting having exchanged so many of my dollars in that first round and thinking that if I had only waited a few weeks, I could have gotten nearly twice as much for them.  I won't say my memory is perfect--nobody's is.  But I tell it like I remember it, with no intention whatsoever to alter the facts just to "be right."  I'd be happy to be proven wrong, if the actual details can be confirmed from historical records somehow.  Until then, I'm going to have to accept my memories.

 

What I remember, too, was that the swing to 57 happened more suddenly.  That could be because I was not watching it every day, and only saw the bank's signboards when I went into town.  But to my memory, it had been relatively stable in the lower 30's almost right up until it spiked.  I probably got into town about once a week, or once every two weeks, so there's no chance I saw it every day, and I don't remember how much of my memory may have been based on what others were talking about--but I know it came as a surprise to most.

[connda]

So they want to re-peg it to the USD like pre-1997.  Works for me.  A guaranteed ฿35/USD?  Not bad. 

[Harveyboy]

On 9/22/2022 at 4:54 AM, madmitch said:

Has he actually looked at any other currencies, many of which have fallen further against the dollar than the baht has? 

Euro and pound C##p not doing anything for tourism..or x pats ..what weak baht is he talking about  ..i don't see one

[island coconut]

13 hours ago, RichardColeman said:

And so has the cost risen about 20% for everything Americans need to buy internally ! I dare say yes, it is good for all the yanks here - or those paid in $ - but I imagine a trip back to the US will be a real culture shock

I haven't been back to the USA in years and have no plans to ever return there.

[Isaan sailor]

32 minutes ago, connda said:

So they want to re-peg it to the USD like pre-1997.  Works for me.  A guaranteed ฿35/USD?  Not bad. 

Peg the USD at 37–much better.

[Burma Bill]

On 9/22/2022 at 3:04 AM, webfact said:

He (Prawit) called on Minister of Finance ..................... to work with the Bank of Thailand........................................... to bring about a rate of ฿35 to the US currency.

For reference - the latest published in International media (22 September 2022)

 

"Thailand’s acting prime minister, who earlier this week called for measures to halt the baht’s slide, said the government won’t meddle with the central bank and how it handles the currency. 

The Finance Minister told to “only talk” to the Bank of Thailand about the baht’s recent slump.

That’s a walk back from remarks on Tuesday when he said he wants the baht back at 35 to a dollar. "

https://www.bnnbloomberg.ca/thailand-swears-central-bank-autonomy-as-baht-extends-slump-1.1822092

Loss of face for Prawit???????

 

[Chelseafan]

4 hours ago, jacko45k said:

And yet Sterling depreciating substantially is being regarded as a disaster here.. can't have it both ways. 

The big difference is that sterling is not AFAIK being deliberately manipulated or we would be on the US radar. Thailand on the other hand is. To be fair Thailand is not the only country who are playing around with their currency

[overherebc]

41 minutes ago, AsianAtHeart said:

I saw 57 in Chiangmai.  I'm certain of that.  I'm less certain of exactly when that was.  It could be, too, that, as usual, there is an official rate, and then there's the rate that the banks will actually give.  I saw the exchange board in the bank.

No arguement. As you say some exchanges will have their own rates. Airports tend to be the worst.

[overherebc]

My own experience of it worked out quite well. Nothing to do with planning just dumb luck. 

I wasn't even looking at exchange rates changing. I found a car I wanted to buy, worked out the sterling I needed to get transferred and called my brother to do the transfer.

He did that and 'faxed' me the details. Waited a few days and went to the bank where I was told 'no money come'. 

This happened a few times until my brother faxed confirmation the money had arrived. End result was a very high 80 something rate so I ended up with enough to buy the car and almost the same amount of baht left over.

[Mavideol]

57 minutes ago, Burma Bill said:

For reference - the latest published in International media (22 September 2022)

 

"Thailand’s acting prime minister, who earlier this week called for measures to halt the baht’s slide, said the government won’t meddle with the central bank and how it handles the currency. 

The Finance Minister told to “only talk” to the Bank of Thailand about the baht’s recent slump.

That’s a walk back from remarks on Tuesday when he said he wants the baht back at 35 to a dollar. "

https://www.bnnbloomberg.ca/thailand-swears-central-bank-autonomy-as-baht-extends-slump-1.1822092

Loss of face for Prawit???????

 

what else to expect from this banana republic  ????

[Isaan sailor]

What the good general doesn’t understand—any time you manipulate one particular currency down vs. the Baht, you inadvertently tank other currencies in the process.

[jacko45k]

2 minutes ago, Isaan sailor said:

What the good general doesn’t understand—any time you manipulate one particular currency down vs. the Baht, you inadvertently tank other currencies in the process.

That doesn't make sense.... he is talking about manipulating the baht itself.....using USD as reference. Not much chance of manipulating the USD!

[overherebc]

I do remember the asking price for horizontal entertainment going up. Reason given was  'you get twice as many baht now for £ or $ so you still pay same in £ or $ if I charge twice as many baht'.

[Isaan sailor]

3 hours ago, jacko45k said:

That doesn't make sense.... he is talking about manipulating the baht itself.....using USD as reference. Not much chance of manipulating the USD!

No argument.  However, by strengthening the Baht, he could weaken other currencies, when paired with the Baht.

[racket]

On 9/22/2022 at 5:21 AM, 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

The US has manipulated its currency since 1913.

[metisdead]

Off topic posts about the UK pound have been removed.

[fusion58]

Openly advocating for the central bank to engage in currency manipulation.

 

Nothing improper about that. ????

[ThailandRyan]

1 hour ago, racket said:

The US has manipulated its currency since 1913.

Please explain that doozy of a falsehood.

[Fairynuff]

On 9/22/2022 at 2:40 PM, Isaan sailor said:

Hey, every dog has its day.  Give it up on Dollar bashing.  And 37 didn’t last very long.  At the moment you cannot get 37 Baht for a Dollar at Wise.  That ship has sailed.

Oooooooh touchy

[jacko45k]

12 hours ago, Isaan sailor said:

No argument.  However, by strengthening the Baht, he could weaken other currencies, when paired with the Baht.

Yes, if they sold foreign reserves and bought back baht that would strengthen baht (but it is expensive and likely will not last).... and of course that would reflect against other currencies. But really one has to look in relation to the global reserve currency....USD.

[Nickelbeer]

The lack of knowledge of economics on the part of Thailand’s leadership is appalling. I know they have advisors, do they LISTEN to them????

[jacko45k]

Just now, Nickelbeer said:

The lack of knowledge of economics on the part of Thailand’s leadership is appalling. I know they have advisors, do they LISTEN to them????

I know distraction is not the best argument but the UK seems to be a better example of appalling economics, Thailand's approach may be a good example for some.  

[metisdead]

A post with an unattributed chart has been removed as there was no link to the source of information provided.