VinnieK Posted September 22, 2022 Share Posted September 22, 2022 1 hour ago, Jonathan Swift said: Interfering with the free market carries much worse potential consequences. Exchange rates go up and down in cycles. That's how it works. By the way, the definition of "overvalued USD" - is that YOUR definition? Did you write the book on world economics? If so I'd like to read it and become enlightened like you. And BTW, haven't I been hearing about Thailand wanting the tourists' dollars back? So if this helps "dollar carrying tourists" how is it not a good thing? They'll be spending more and dumping it into the Thai economy anyway. Don't answer, that was a rhetorical question. Free market?...???? Hasn't been any free market for decades...if ever. 1 Link to comment Share on other sites More sharing options...
dogfish180 Posted September 22, 2022 Share Posted September 22, 2022 Because he has the IQ of a 6 year old! 2 Link to comment Share on other sites More sharing options...
ThailandRyan Posted September 22, 2022 Share Posted September 22, 2022 As of this moment the USD is marching on and the Baht loosing ground Watching TNN 16 now and they are discussing how foolish Prawits demand to drop the exchange rate to 35 Thb per $1. It would seem that now all eyes from the west will be turned towards Thailand to see if this manipulation will occur based on this new deatil. Waiting to see if it is picked up in the international business news. Link to comment Share on other sites More sharing options...
AsianAtHeart Posted September 22, 2022 Share Posted September 22, 2022 (edited) It seems the acting PM needs to take some lessons in Economics. When the baht is undervalued, it will be excellent for the Thai economy. For example, when dollars can buy more baht, the Thai products become cheaper to other nations, leading them to import more Thai products. This means Thailand's exports will increase, and everyone who knows anything about economics will know that a good economy is supported by a "favorable balance in trade," i.e. a country exports more than it imports. This is the exact reason America was upset only a few years ago when China artificially held its currency to a lower value. Thailand wants its baht at a higher value? Why not just say you don't value the country's economy anymore and just want to be able to spend your baht elsewhere? Edited September 22, 2022 by AsianAtHeart 2 Link to comment Share on other sites More sharing options...
jaywalker2 Posted September 22, 2022 Share Posted September 22, 2022 2 hours ago, Jonathan Swift said: Interfering with the free market carries much worse potential consequences. Exchange rates go up and down in cycles. That's how it works. By the way, the definition of "overvalued USD" - is that YOUR definition? Did you write the book on world economics? If so I'd like to read it and become enlightened like you. And BTW, haven't I been hearing about Thailand wanting the tourists' dollars back? So if this helps "dollar carrying tourists" how is it not a good thing? They'll be spending more and dumping it into the Thai economy anyway. Don't answer, that was a rhetorical question. "Intefering with the free market". That's a joke. What do you think QE was and all that money poured into subsidizing businesses during the pandemic (which was used it to goose management salaries and buy back shares). The Fed has done nothing but interfere with the free market ever since the Reagan era. You probably have hundreds of businesses in Thailand that borrowed cheap dollars when interest rates were at zero. And not just in Thailand but all over the world. This isn't going to help the tourist trade much either unless you expect an influx of Americans, which I doubt since most of them have no money. I'm American though, and I have money so I'm happy as a clam. I get better interest rates on my cash and a strong dollar. 1 Link to comment Share on other sites More sharing options...
mikebell Posted September 22, 2022 Share Posted September 22, 2022 1 hour ago, mania said: He then turned around & demanded Health minister to find a cure for cancer NOW ! I thought they already had? Oh no, sorry, that was Eboli. Link to comment Share on other sites More sharing options...
scorecard Posted September 22, 2022 Share Posted September 22, 2022 2 hours ago, Jonathan Swift said: It seems the new prime minister may be worse than the last one. Is this his idea of economic common sense, or is he just posing for effect? Or perhaps his knowledge/guide re curencies is the 1997 crash. 1 Link to comment Share on other sites More sharing options...
Popular Post Highend Expat Posted September 22, 2022 Popular Post Share Posted September 22, 2022 Nothing new. They do this regularly. The rich Chinese Thais want to get their money out of Thailand to buy assets in other denominations. Following the China model. 3 Link to comment Share on other sites More sharing options...
Popular Post Purdey Posted September 22, 2022 Popular Post Share Posted September 22, 2022 The BOT governor knows raising interest too quickly will cause problems for business growth. The PM remembers the Tom Yang Kung crisis and 50 baht to the dollar. Interest rates and currency are both sensitive subjects here. As has been mentioned, 50 baht to the dollar would attract American tourists but they aren’t the largest tourist group and other currencies are also important.. The PM is a soldier, not an economist, and should be careful what he wishes for. 1 1 1 Link to comment Share on other sites More sharing options...
koele2 Posted September 22, 2022 Share Posted September 22, 2022 Those maintenance fees on million dollar condos in the us and foreign luxury goods are costing too much baht. Not enough getting kicked up to the top with this poor economy. They have mouths to feed too. Link to comment Share on other sites More sharing options...
Popular Post kennw Posted September 22, 2022 Popular Post Share Posted September 22, 2022 3 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. Maybe you should look at the root cause of the disruption to world energy supplies and thus its impact on currencies. Russia has weaponized energy supply because his war in Ukraine is going badly. If countries can stand together against Russian aggression maybe things can return to normality. For Thailand to welcome Russians here is a step in the wrong direction. 4 1 1 Link to comment Share on other sites More sharing options...
CrunchWrapSupreme Posted September 22, 2022 Share Posted September 22, 2022 This used to be at least 100 bucks. Now it's $69. An incredible drop. Over the past two months the Japanese I teach online have gradually disappeared. 1 Link to comment Share on other sites More sharing options...
ThailandRyan Posted September 22, 2022 Share Posted September 22, 2022 3 minutes ago, CrunchWrapSupreme said: This used to be at least 100 bucks. Now it's $69. An incredible drop. Over the past two months the Japanese I teach online have gradually disappeared. Ouch....the drop is happening to many currencies and economies are tanking while others fight hard to stay afloat. Link to comment Share on other sites More sharing options...
wwest5829 Posted September 22, 2022 Share Posted September 22, 2022 5 hours ago, John Drake said: Or Thailand could promote this exchange rate with American tourists. Oops. Forgot. They want to focus on Russians instead. Speculation, but I'm thinking there may well be an increase of Russian men coming wanting to escape Vlad's "partial mobilization" to fight in the war on Ukraine. Link to comment Share on other sites More sharing options...
Popular Post ThailandRyan Posted September 22, 2022 Popular Post Share Posted September 22, 2022 3 minutes ago, wwest5829 said: Speculation, but I'm thinking there may well be an increase of Russian men coming wanting to escape Vlad's "partial mobilization" to fight in the war on Ukraine. Just read where within a few hours all flights out of Russia were booked and some seats, the cheap ones, were selling at 9k USD....... 2 1 Link to comment Share on other sites More sharing options...
OJAS Posted September 22, 2022 Share Posted September 22, 2022 (edited) 3 hours ago, sammieuk1 said: He must be holding euros and pounds with a massive touch of swiss francs ???? In which case he may, I think, be shooting himself in the foot since any engineered appreciation in the THB's value against the USD will likely have a similar impact on the EUR, GBP and CHF xrates as well. In any event, as the graph below shows, the GBP is already on a downward trajectory against the THB without any USD-related manipulatory assistance from the DPM and his henchmen:- Edited September 22, 2022 by OJAS Link to comment Share on other sites More sharing options...
Tropposurfer Posted September 22, 2022 Share Posted September 22, 2022 I 'aint' no econimeest' so I'd really encourage any actual economists to chime in and give professional experiential comment here. I'd love to see the baht exchange rate improve Vis a Vis to the AUD. But as some have elucidated here the connections and balances across the globe are at play and need to be managed with great care, lest we remove the brakes on the inflationary train. As for Biden being the cause of the inflation in the US (and its impact on world financial events) how convenient, comforting, and myopic to hold such a simplistic view of that economy, and its interactions with the rest of the world economies. Considering the previous 'President' (aint' that a misnomer) presided over the greatest deficit growth in American history (fact not fictional rhetoric) and the world has just experienced a world shattering medical emergency that has devastated economies across our world. Destabilising the world not seen since the Spanish Flu of 1917 combines with the impact of events in and from Russia, and the insecurity, destabilising effects and emboldenment of anarchic fascistic elements (all incapable of managing and steering national economies (another historical fact not fictional rhetoric) during and post the US 45th Presidency. I'd love to hear from thoughtful critically thinking members on how the up-till-now western run world can adapt peacefully to the rise of China not as adversary but as partner in the future of the planet. How do we deal with the economically destabilising impact of western not just Chinese hegemony? How do we, can we, shift away from failed 'trickle down' economics, and its gestating of anti-humanity, self destructive fascism (and please don't try to tell me that this top down system has worked because we have built lots of stuff) to an altruistic non-rapist economic system? 1 1 Link to comment Share on other sites More sharing options...
placeholder Posted September 22, 2022 Share Posted September 22, 2022 3 hours ago, Jonathan Swift said: Interfering with the free market carries much worse potential consequences. Exchange rates go up and down in cycles. That's how it works. By the way, the definition of "overvalued USD" - is that YOUR definition? Did you write the book on world economics? If so I'd like to read it and become enlightened like you. And BTW, haven't I been hearing about Thailand wanting the tourists' dollars back? So if this helps "dollar carrying tourists" how is it not a good thing? They'll be spending more and dumping it into the Thai economy anyway. Don't answer, that was a rhetorical question. Well, one way it's not a good thing is the cost oil. Which is priced in dollars. Link to comment Share on other sites More sharing options...
huangnon Posted September 22, 2022 Share Posted September 22, 2022 I wonder if Watchman remembers what happened last time the Baht was pegged to the USD in 1997.? ???? There may be trouble ahead.. 1 Link to comment Share on other sites More sharing options...
Popular Post spidermike007 Posted September 22, 2022 Popular Post Share Posted September 22, 2022 (edited) This kind of ignoramus demand is made, when a nation reaches for the bottom of the barrel, for leadership. Not sure they could have found anyone less qualified. Interest rates are only a part of the formula. And what a small minded man like this will never admit, is that he presided over policies that caused much economic devastation, hardship and loss. Nobody is more toxic to the nation, at this time. And we thought Prayuth was a poor leader. Edited September 22, 2022 by spidermike007 3 1 Link to comment Share on other sites More sharing options...
placeholder Posted September 22, 2022 Share Posted September 22, 2022 3 hours ago, Jonathan Swift said: Interfering with the free market carries much worse potential consequences. Exchange rates go up and down in cycles. That's how it works. By the way, the definition of "overvalued USD" - is that YOUR definition? Did you write the book on world economics? If so I'd like to read it and become enlightened like you. And BTW, haven't I been hearing about Thailand wanting the tourists' dollars back? So if this helps "dollar carrying tourists" how is it not a good thing? They'll be spending more and dumping it into the Thai economy anyway. Don't answer, that was a rhetorical question. Well, what would you call the U.S, Fed raising interest rates if not free market interference. The US was having no trouble selling Treasury notes at lower rates to finance its deficit but raised the rates to fight inflation. So it's not really just about free markets, is it? Link to comment Share on other sites More sharing options...
hotchilli Posted September 22, 2022 Share Posted September 22, 2022 5 hours ago, arick said: Is he planning a long trip abroad. We live in hope... and he takes his buddy in arms with him Link to comment Share on other sites More sharing options...
hotchilli Posted September 22, 2022 Share Posted September 22, 2022 4 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 He's always been the boss, Prayut was the fall-guy. Link to comment Share on other sites More sharing options...
AsianAtHeart Posted September 22, 2022 Share Posted September 22, 2022 13 minutes ago, huangnon said: I wonder if Watchman remembers what happened last time the Baht was pegged to the USD in 1997.? ???? There may be trouble ahead.. 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. Link to comment Share on other sites More sharing options...
Charlie Halliday Posted September 22, 2022 Share Posted September 22, 2022 You can be absolutely certain his demand is purely self interest. As with all Thai politicians he buys vast amounts of USD for the day he's sent into exile. Remember July 1997 when Chavalit shorted the THB the Friday before the following Monday when the Tha baht crashed. Sources in HSBC say he made USD400m personally off the trade. He was never investigated! Amazing Thailand!! 2 Link to comment Share on other sites More sharing options...
smedly Posted September 22, 2022 Share Posted September 22, 2022 7 hours ago, webfact said: Acting Prime Minister Prawit Wongsuwan surprised the cabinet on Tuesday when he warned that the government could not again allow the baht to trade at ฿50 against the US dollar not how it works Link to comment Share on other sites More sharing options...
smedly Posted September 22, 2022 Share Posted September 22, 2022 4 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? look no further than Japan Link to comment Share on other sites More sharing options...
island coconut Posted September 22, 2022 Share Posted September 22, 2022 3 hours ago, RichardColeman said: Before doing anything internally and wasting his the country's money he should have a word with dementia Joe, as the US dollar is surging not because what Thailand is doing but due to Biden's insane throw away money policies. $ will be high for 18-24 months now, take the hit and the export gain. You start trying to keep up with Joe and Thailand will go broke. He should try having my pound - down both against the dollar AND the baht. Making the baht stronger due to one currency fluctuation is madness If Biden is the reason that my US Dollar income has risen by nearly 20% this year I LOVE the guy. I'm hoping for 45-50 Baht to the Dollar. Link to comment Share on other sites More sharing options...
Dialemco Posted September 22, 2022 Share Posted September 22, 2022 The U.S. Dollar is strong against most currencies in the world so not much Thailand can do about it but accept the devaluation and get on with life. Any attempt to keep the Baht artificially high could have a disastrous affect on economy including tourism. Link to comment Share on other sites More sharing options...
foreverlomsak Posted September 22, 2022 Share Posted September 22, 2022 4 hours ago, robsamui said: Is the buffoon even aware that there are more nations out there than Thailand and the USA? well there's China, India and Russia Link to comment Share on other sites More sharing options...
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