Baht Rises To Strongest Level In Decade

[sonicdragon]

Yes, can someone PLEASE explain why on the Foreign Exchange Market the Baht is trading at 31.7 to the US Dollar??

That is the rate that credit cards use. For instance, even though this article says the rate is 34, if I charge something on my US credit card, it is converted at 31.7 (then, there is an additional 3% conversion charge). I believe the same happens if I withdraw money from my US account at an ATM here.

It's freaking killing me!

31.7 is the offshore rate as I mentioned earlier. The onshore rate rate is curently around 34.9. See here for information about that, and also about how to get the better onshore rate when transferring money

http://www.thaivisa.com/forum/index.php?showtopic=127371

[Ricardo]

Perhaps Thailand should recruit George Shrub for PM, this would surely have the desired effect, of weakening the currency ?

[koheesti]

Perhaps Thailand should recruit George Shrub for PM, this would surely have the desired effect, of weakening the currency ?

No worries. In 1.5 years there will be a new president and the dollar will be back above 40 baht and 1.60 GBP and the Euro back where it belongs at 1.25 to the USD.

[lennart2000]

All Asian currencies are strong and th dollar is not. But the baht is nowhere near as strong as other currencies in Asia largely due to the protectionist policies of the current govt and the political limbo the country is in.

I doubt too if the inflow of foreign money is anywhere near as good as the banker claims.

It is not so much the inflow of foreign money. Thai exporters selling in USD immediately

convert to Thai Baht in anticipation that the Thai Baht is stronger tomorrow.

[SteveH]

Let's bring it down to real terms for American Pensioners retired in Thailand. Roughly speaking, let's examine the effects on many in Thailand. Not so long ago, when the rate was 40, a retiree with $1500/Mo. had the 60k monthly required to qualify for the retirement visa. (ok, it's 65, but too lazy to do the math)

Today, that would only be worth 48k. So, he has a 12k shortfall, hence no qualifying for renewal of stay. Has to go home or find some other way.

These are the shifting goalposts that worry many fixed income retirees now.

* this is not just a concern for Americans. Anyone else in the world whose pension is denominated even partly in US dollars is affected. And, the US dollar will not be displaced as the world currency for petro dollars anytime soon, etc., so the effects are not limited to Americans.

Ahhhh! Remember when we were getting over 90 baht to the pound, that would make the pension go a long way.

[A_Traveller]

All Asian currencies are strong and th dollar is not. But the baht is nowhere near as strong as other currencies in Asia largely due to the protectionist policies of the current govt and the political limbo the country is in.

I doubt too if the inflow of foreign money is anywhere near as good as the banker claims.

It is not so much the inflow of foreign money. Thai exporters selling in USD immediately convert to Thai Baht in anticipation that the Thai Baht is stronger tomorrow.

Now that is an interesting take in this 10th anniversary week.

Regards

[chinthee]

All Asian currencies are strong and th dollar is not. But the baht is nowhere near as strong as other currencies in Asia largely due to the protectionist policies of the current govt and the political limbo the country is in.

I doubt too if the inflow of foreign money is anywhere near as good as the banker claims.

It is not so much the inflow of foreign money. Thai exporters selling in USD immediately convert to Thai Baht in anticipation that the Thai Baht is stronger tomorrow.

Now that is an interesting take in this 10th anniversary week.

Regards

VERY interesting. I wonder if anyone has any figures on that, or if they're even obtainable?

[Iambabababor]

Live rates at 2007.07.03 06:39:16 UTC

20,000.00 THB

=

311.926 GBP

Thailand Baht United Kingdom Pounds 1 THB = 0.0155963 GBP 1 GBP = 64.1179 THB

The usual visit to thai atm!!!

I have just drawn out 20,000bt from kasikorn bank (2pm 3rd July) using Nationwide debit card and received 69.23 exchange rate.

[josefbl]

hallo everyone ,

I think that the Bath versus EURO is very LOW ! Am I mistaken ? The exchange rate show 1 € = 43,...

Please correct me ,as I want to transfer € to Thailand.

[zeusbheld]

Its almost like we can't wait to see the @rse fall out of the US economy... Almost...

I love it when there are 2 dollars to the pound, makes conversion easier and it reminds me of when I were a lad up in't north!

them were some grand days...

Loz

Yes but if if goes too far there could be a very dark side to all this

Extremely dark. Exports to the US would dry up too.

which would in turn decimate many asian economies. including china... with so many major economies tanking at once, good luck to any that think their country is immune...

PS at present, it's a bit premature for all the doom and gloom though.

[sfokevin]

Also look at how the SET is doing... Seems like a classic bubble building...

[zeusbheld]

wow over one thousand readers on this post....we all care about the baht so much.

when we have to convert money from other currencies from time to time... yeah. we care. not surprising really, is it?

[cobalto]

Perhaps Thailand should recruit George Shrub for PM, this would surely have the desired effect, of weakening the currency ?

No worries. In 1.5 years there will be a new president and the dollar will be back above 40 baht and 1.60 GBP and the Euro back where it belongs at 1.25 to the USD.

Are you really sure in 1.5 years there will really be a new president? That's what the world expected last time...

[tropo]

Isn't just about everything appreciating against the US dollar lately? The Baht has been dropping against the Canadian and Australian currencies, so is it more a case of the US dollar being weak than anything?

This is not quite true.

The Australian dollar has lost a lot of ground against the baht and has basically suffered the same fate as the US dollar.

If you look at a 2-year graph it has picked up a little since March, but that was nothing more than a correction after a very steep decline the preceeding 2 months.

[koheesti]

Perhaps Thailand should recruit George Shrub for PM, this would surely have the desired effect, of weakening the currency ?

No worries. In 1.5 years there will be a new president and the dollar will be back above 40 baht and 1.60 GBP and the Euro back where it belongs at 1.25 to the USD.

Are you really sure in 1.5 years there will really be a new president? That's what the world expected last time...

OK, 1.575 years. Guaranteed.

[Bartman]

Perhaps I am stating the obvious but if you are transferring fund from US, AUS or EU etc. you always get a better rate if you send the money in your home countries currency and then let them convert it here. Normally about a 5-7% better rate. Even better rate if you bring cash into the country when you fly here....

It all depends on which website you look at for conversion rates as to what they value a particular currency at...

[deminister]

Isn't just about everything appreciating against the US dollar lately? The Baht has been dropping against the Canadian and Australian currencies, so is it more a case of the US dollar being weak than anything?

Indeed, it is certainly not the strength of the THB, it is the weakness of the Dollar. The underlying factors of a strengthening baht could be questioned. This government has a credibility problem. We might even question their forecasts as they seem to be based on hope, believe and expectations rather than on figures. Add the fact the the foreign business act will eventually be most damaging to investment and the elite is doing everything to screw 70% of the voters and we know that we should not worry. The Baht will nose dive sooner or later, not only in comparison with the dollar but also in comparison with the other South East Asian nations.

[dezeure]

Isn't just about everything appreciating against the US dollar lately? The Baht has been dropping against the Canadian and Australian currencies, so is it more a case of the US dollar being weak than anything?

hasn't really changed much against the Euro... I just get more dollars for my Euros now...

[lennart2000]

Perhaps Thailand should recruit George Shrub for PM, this would surely have the desired effect, of weakening the currency ?

No worries. In 1.5 years there will be a new president and the dollar will be back above 40 baht and 1.60 GBP and the Euro back where it belongs at 1.25 to the USD.

Wishfull thinking

[wileycoyote]

The UK pound looks as if it will become stronger from Thursday.

http://news.independent.co.uk/business/news/article2730486.ece

Wiley Coyote

[marshall]

Live rates at 2007.07.03 06:39:16 UTC

20,000.00 THB

=

311.926 GBP

Thailand Baht United Kingdom Pounds 1 THB = 0.0155963 GBP 1 GBP = 64.1179 THB

The usual visit to thai atm!!!

thats robbery. you should be getting what the bank is offering normally between 67 and 69. check before you withdraw.

[Guest madcow]

Here,s an interesting article from a very good friend of mine , he has the annoying habit of always being right , and of course he is right this time , Australia is in the same boat , the only saviour at the moment being the high demand for minerals .

http://www.dailyreckoning.com.au/falling-h...ces/2007/07/03/

[jumnien]

For many of us, the further the dollar falls against the baht, the cheaper it is to live here in Thailand. I came here when the dollar was at 25 and became accustomed to it and found a cheap enough way to live here at that rate. In 1997 the baht weakened considerably and I, like many, started bringing over lots of dollars to invest in relatively cheap condos and Thai stocks. It got rather expensive all this buying and investing. The last couple years, the dollar has weakened and it just isn't as attractive to buy cars, stocks and condos. It's a lot cheaper living here now. And I don't have to bring over any dollars. I just sell the Thai stocks and a condo here and there and live off the baht. So my money is accumulating much faster in the US than when the baht was weaker. I keep wishing the baht would crash. But if it does that cycle of buying will undoubtedly start all over again.

[waldpyk]

Yeah China is in a difficult balancing act.On the one hand they are under pressure of the USA to appreciate their currency - they won't , al least not substantially , it would hurt their export enormously.

On the other hand they are sitting on 1 trillion $ seeing it slowly depreciating in value.

and then a lot of central banks are slowly lowering the %dollars they hold.

Ultimately the value of the baht will reflect this Chinese/Japanese balancing act

To be long in dollars is is really gambling

And although the baht is relatively strong i would not keep more then absolutely necessary in baht

House and land is a different story

[adam1]

Deleted

Edited July 4, 2007 by astral
Not related to Thai Baht

[Bill97]

Baht rises to strongest level in decade

The dealer said the strengthening of the baht is not cause for overconcern because the currency has been moved by market mechanism, driven by the foreign capital inflows.

Should the foreign funds continue to flow into the country, the baht is likely to further appreciate.

Source: TNA - 03 July 2007

So, should the foreign funds start to flow out of the country, the baht is likely to depreciate.

Lots of good reasons why the foreign funds could start to flow out of Thailand. Better opportunities elsewhere or the need for those funds at in their home countries, and out go the funds. Problems in the US economy are growing and dollars will be headed back there to save the home offices. There is not much fundamental about the Thai economy that is great, there is just too much liquidity in the West looking for a place to invest and because Thai stock and currency markets are thin, they are easily moved.

[Rhys]

When the US Economy takes a bit of Flatus..the rest of the world takes a Dump..early Marty F...

Edited July 3, 2007 by Rhys

[slim]

Perhaps I am stating the obvious but if you are transferring fund from US, AUS or EU etc. you always get a better rate if you send the money in your home countries currency and then let them convert it here. Normally about a 5-7% better rate. Even better rate if you bring cash into the country when you fly here...

Better still - travellers cheques - nearly a baht more than cash

[gwynt]

Live rates at 2007.07.03 06:39:16 UTC

20,000.00 THB

=

311.926 GBP

Thailand Baht United Kingdom Pounds 1 THB = 0.0155963 GBP 1 GBP = 64.1179 THB

The usual visit to thai atm!!!

Sorry but this is not very clever. By using atm the offshore rate of around

64.1 is used. If you asked your bank to TT GBP to your bank account in Thailand the

onshore rate would be used which is around 68.9. You are loosing around 4.8 Baht

for each GBP.

I must be one of the fortunate ones, when I use an ATM or transfer monies to my Thai account I get a conversion rate of between 67tb and 70tb plus I dont get charged for the use of ATM's

admittedly it's a debit card not credit card. I Bank with Nationwide.

[koheesti]

...Cheney has been in and around govt. for so long, I'm not sure that a small thing like a constitutional law is necessarily going to stop him from cancelling or postponing elections, in case of dire circumstances like a war on Iran, or some such misadventure.

Anyone who even remotely believes this will happen has a lot more serious problems than the baht exchange rate. Regardless of what's happening in the USA or elsewhere, one would think that a military coup and over 2000 people killed in the unstable southern region of Thailand over the past couple years might have a negative effect on the baht and foreign investment. Yet I read here somewhere that the baht was the best performing currency in the world in 2006. Huh?