How does the Baht stay so strong ??

[Stevemercer]

The Thai Government wants a strong Baht and will keep supporting it. Provided the Government doesn't run out of money the Baht will stay relatively strong (compared to other Asian currencies). The Government still has horrors from the 1997 collapse.

[NoshowJones]

Manipulation by the soldiers government??

[itsari]

7 hours ago, AgMech Cowboy said:

Yep, I sure hope they don't use them. ????   

I don't think a stronger Baht will help their export businesses, which they need to fire up the economy.

Strong dollar is not good for the US exporters either . 

[hotchilli]

So despite 2 recent interest rate rises by the US and UK, the baht remains strong, mainly aginst the GBP. I realise that the GBP has tanked vs the USD, but the baht hasn;t really moved.

 Any explanation how this continues ?

 

In a single word: Manipulation.

[PB172111]

22 hours ago, KhunBENQ said:

Looks like the GBP has done another dive.

40.7 at currency market.

"Lowest rate since 37 years" is one headline.

 

Makes the Euro loss feel moderate.

Huh, it was down to 37 only a couple of years ago

 

[Sparktrader]

On 9/23/2022 at 11:36 AM, worgeordie said:

At the moment the Government is throwing money away and 

is giving support to the Baht.

regards Worgeordie

They always do

[Sparktrader]

23 hours ago, KhunBENQ said:

Looks like the GBP has done another dive.

40.7 at currency market.

"Lowest rate since 37 years" is one headline.

 

Makes the Euro loss feel moderate.

Lowest against usd since 1985

[plus7]

Hi,

 

I think UK financial policy may not be completely pro-UK policy.

They are players on the global financial market and pound is just a tool for financial sharks.

 

 

[Sparktrader]

On 9/23/2022 at 12:28 PM, Chivas said:

What are you talking about lol ??  Support to the Baht ??  From who ??

Central banks can prop up currency. Year 10 economics.

[Sparktrader]

On 9/23/2022 at 2:12 PM, Chivas said:

Its utterly astonishing how so many just dont grasp how foreign exchange works.....thats not aimed at the quoted poster per se

 

The Baht takes its "fix" off the worlds "reserve" currency USD 24/7   (as does every other currency for that matter)

 

Dollar/Baht is part of EVERY exchange rate that relates to Thailand whether your fiat currency is Sterling/Euro/AUD etc etc etc

 

Its the strongest or weakest depending on your point of view its been since 2006

 

(Dollar/Baht) x (Sterling/Dollar)

(Dollar/Baht) x (AUD/Dollar)

(Dollar/Baht) x (Euro/Dollar)

 

And so on.....

 

What is WEAK is all our fiat currencies value against the USD

 

No matter where you come from only 2 ratio's are of importance

 

Dollar/Baht and your OWN currencies value against the USD

 

Anything else is just "noise"

 

Nonsense. Aud was 18 baht. Hit 31 baht before. 24/25 now.

 

 

[Chivas]

4 hours ago, hotchilli said:

So despite 2 recent interest rate rises by the US and UK, the baht remains strong, mainly aginst the GBP. I realise that the GBP has tanked vs the USD, but the baht hasn;t really moved.

 Any explanation how this continues ?

 

In a single word: Manipulation.

I've explained to you how Foreign Exchange works further up the thread

[Chivas]

2 hours ago, PB172111 said:

Huh, it was down to 37 only a couple of years ago

 

He's talking about Sterling/Dollar not Sterling/Baht

Sterling is the weakest since 1985

[Chivas]

1 hour ago, Sparktrader said:

Nonsense. Aud was 18 baht. Hit 31 baht before. 24/25 now.

 

 

 I've explained to you already in this thread that the AUD/Baht rate is the sum of (Dollar/Baht) x (AUD/Dollar) and movement in either of those pairs affect the bottom line number crunch

 

This is how foreign exchange is calculated  (For Aussies obviously)

 

Its not magic lol thats how it works !

 

 

[nigelforbes]

21 minutes ago, Chivas said:

 I've explained to you already in this thread that the AUD/Baht rate is the sum of (Dollar/Baht) x (AUD/Dollar) and movement in either of those pairs affect the bottom line number crunch

 

This is how foreign exchange is calculated  (For Aussies obviously)

 

Its not magic lol thats how it works !

 

 

What you wrote is true, except the forex system only sets relative values, not absolute values. Absolute values are set by dealers as part of the interbank trade. In the case of GBP/THB, the forex system refers to USD/THB and USD/GBP to establish the relative rate. Dealers then make variable adjustments to the absolute rate to compensate for extraneous factors the forex system cannot see. As a result it's quite possible for GBP/THB to change, even though USD/GBP and USD/THB remain constant. Those changes usually reflect the GBP/THB economic relationship only and have little to do with USD.

 

 

 

 

[Chivas]

^^

So you joined the forum to add that perhaps lol..........

Fella after nearly 40 years in Finance I know exactly how foreign Exchange is calculated

 

No further bait will be taken....out

[nigelforbes]

14 minutes ago, nigelforbes said:

What you wrote is true, except the forex system only sets relative values, not absolute values. Absolute values are set by dealers as part of the interbank trade. In the case of GBP/THB, the forex system refers to USD/THB and USD/GBP to establish the relative rate. Dealers then make variable adjustments to the absolute rate to compensate for extraneous factors the forex system cannot see. As a result it's quite possible for GBP/THB to change, even though USD/GBP and USD/THB remain constant. Those changes usually reflect the GBP/THB economic relationship only and have little to do with USD.

 

 

 

 

I was agreeing with you, just in case you didn't understand.

 

"Exchange rates are basically a comparison between the policies of two countries. It is essential to understand that exchange rates are not absolute rather they are relative".

 

https://www.managementstudyguide.com/how-are-exchange-rates-determined.htm

[Sparktrader]

2 hours ago, Chivas said:

 I've explained to you already in this thread that the AUD/Baht rate is the sum of (Dollar/Baht) x (AUD/Dollar) and movement in either of those pairs affect the bottom line number crunch

 

This is how foreign exchange is calculated  (For Aussies obviously)

 

Its not magic lol thats how it works !

 

 

Its all related, otherwise arbitrage exists.

[vandeventer]

On 9/23/2022 at 12:38 PM, fulhamster said:

How long can they continue to do this ??

Some countries currencies are  not getting stronger because of this that maybe happening.

https://www.youtube.com/watch?v=cCgbyMCwDK0

 

[Phil1964]

On 9/23/2022 at 4:57 AM, Henryford said:

The Baht is not strong the others are weak. Does Thailand have a National Debt of 2.5 trillion GBP, 110% of GDP, a massive fiscal deficit and 10% inflation? I am surprised the Pound is not worthless.

Sterling is a basket case, (both the useless England forward and the GB's currency)! ????

In terms of the currency versionit will be much worse by Spring 2023 as UK now managed by a Quasi chancellor and a PM who is solely looking after the 88,114 tory party members who voted her into #10.

Expect to see $1USD = £1.10 at best in the next 6 months.

 

[nigelforbes]

On 9/23/2022 at 11:29 PM, worgeordie said:

Where did the 19 Billion Baht  go then ? , lowest for 16 years , against the US Dollar,

but not so against other major currencies , 

 

regards worgeordie

 

 

The 19 billion is the difference in the valuation of the Thai foreign currency reserves at 30 baht per USD one year ago versus the valuation today at 36 baht per USD. The 19 billion hasn't really gone anywhere, it's smoke and mirrors by political adversaries who want to make mischief.

[nigelforbes]

It might help to put Baht strength into perspective.

https://www.reuters.com/markets/europe/global-markets-view-asia-graphic-2022-09-25/

 

 

 

[fulhamster]

17 hours ago, Phil1964 said:

Sterling is a basket case, (both the useless England forward and the GB's currency)! ????

In terms of the currency versionit will be much worse by Spring 2023 as UK now managed by a Quasi chancellor and a PM who is solely looking after the 88,114 tory party members who voted her into #10.

Expect to see $1USD = £1.10 at best in the next 6 months.

 

1.05 already

 

[NoshowJones]

On 9/25/2022 at 5:50 AM, hotchilli said:

So despite 2 recent interest rate rises by the US and UK, the baht remains strong, mainly aginst the GBP. I realise that the GBP has tanked vs the USD, but the baht hasn;t really moved.

 Any explanation how this continues ?

 

In a single word: Manipulation.

Yes, the soldiers unelected government. Over 50 Baht to the UK Pound in 2014, 42+ now.

[Isaan sailor]

How about that?  We just had another Friday night Baht surge.  All westerns down another 5-10 Satang.  Gotta wonder if BoT times these things for the end of a trading week.

[nigelforbes]

6 minutes ago, Isaan sailor said:

How about that?  We just had another Friday night Baht surge.  All westerns down another 5-10 Satang.  Gotta wonder if BoT times these things for the end of a trading week.

Traders typically square their positions just before the weekend because this reduces exposure on the FOREX, in strengthening currencies this usually results in a slight surge as holdings are sold.

 

https://www.investopedia.com/terms/s/square-position.asp

[vangrop]

On 9/23/2022 at 11:27 AM, worgeordie said:

From the Government , they just spent 19 Billion Baht supporting

the Baht , do you not read the news ?  

regards  Worgeordie

They cannot go on supporting an artificially high Baht. The speculators are waiting with patience the implosion tho cash.

[nigelforbes]

2 minutes ago, vangrop said:

They cannot go on supporting an artificially high Baht. The speculators are waiting with patience the implosion tho cash.

Why do you think THB is artificially high?

[ThailandRyan]

The THB stays strong because it ferments in Bala and Pla Ra.........or it might be the other way around......manipulation of some kind is always a speculatory view....

[Onerak]

My dream of USD/Baht = 40 is shattered. I read Thai central bank is buying Dollars to keep Baht volatility low.