Baht Rises To Strongest Level In Decade

[wittleus]

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!

I just got a Captial One card. They don't charge the 3% foreign currency conversion fee. Someone here once posted that Capital One still used Visa and Visa charges the 3%. Well, not sure how they get around it but Capital One deosn't charge the 3%.

You are partially correct my friend. I got a Capital One cause they "CLAIM" they don't have the 3% foreign currency conversion charge (like talmost every other CC). When I first used it in Thailand I could see how they collect their money. Using the Capital One will cause the charge to show up on the receipt from the vendor in USD. The rate that is used to calculate the currency conversion is NOT the fair bank rate that is given by other cards and banks. The rate they convert at is adjusted in their favor by several %. This keeps them from having to charge you a separate 3% fee. If you ask me, they are just being sneaky by saying they don't charge a currency conversion fee but they really do. It's just hidden in the original charge. Just FYI, if you use another CC the charge will show up on the vendors receipt in THB and the conversion will occur on your statement with the 3% conversion charge.

If you don't trust me on this, look for yourself. And for ANYONE that wants to see what the onshore (in country) baht rate is, including what you get if you transfer money from an off shore bank into SCB, look here http://www.scb.co.th/html/exchange/bk-txtexchange.htm

When I make a transfer from my Stateside bank to SCB I always get the rate listed in the "Bank Buying Rate T/T"

Hope that helps.

Regarding the currency exchange when you use "capital one" which I myself have and use extensively. First, the exchange to dollars only happens at certain vendors (e.g., most stores in the Emporium, Paragorn, etc), i.e., most places where farangs buy. I use it extensively at Big C, Lotus, MBK, etc., it always comes out in Thai Baht. Strangely enough, when I buy in Robinsons, Foodland, most restaurants in Bangkok (including high end restaurants like Baan Kanitha), even brunch at the Marriott, I get Thai baht. I live in Phitsanulok, and the only place that changes automatically to dollars is Homepro (and who shops at Homepro--farangs for the most part). So, it would seem the the process to "change to US Dollars" only happens at certain establishments, backed by certain banks. I have not looked at my receipts carefully to ascertain whether association with a particular Thai bank cause it to default to dollars vs. baht.

Second, you do NOT have to accept the exchange. When the clerk puts it in the machine, a screen comes up where the clerk can select "thai baht" or "native country currency", with the native country currency being the default. Most clerks (not knowing any better) will simply hit the process key and your bill is "US dollars". I have had transactions reversed and walked the clerk through the selection process and had the bill come out in Thai Baht. For instance, when buying at the Emporium department store, I told the clerk I wanted the bill in Thai Baht, and they knew what to do. At Bumrungrad, the lady actually asked me if I wanted the bill run in Thai baht or US dollars prior to finishing the transaction.

So, it is up to you to be proactive and not lose the few percent by having the transaction come out in dollars. Tourists don't mind, but the loss to an ex-pat can be significant buying large ticket items such as refrigerators, home furnishings, etc. As you can imagine, it does help if you speak Thai and explain the clerk what you want and don't want and how to do it.

[Carmine6]

snip

LaoPo, I have been scratching my top and bottom trying to figure out how these export figures keep going up when everyone is paying in dollar denominated currencies; well almost everyone. Japan/US and large volumes. Good mystery best left to better brains than mine.

Posted these on the thread about the "crisis", but worth posting here. What you'll see is that the top 10 export product categories have changed recently. Iron & Steel, Chemicals, and Refine Fuels don't show up until recently. Garments, Rice, and Canned Seafood have fallen out of the top 10 since 2003. Some of the categories have doubled, or almost doubled (in baht terms so even higher in $ terms). Part of the reason rice fell off is that it took 130.8 billion baht to make the 10th spot in 2006. In 2002 it was 70 billion baht.

Also in terms of export destinations, China is gaining on the US and Japan with a 21.2% increase in baht value of exports between 2005 and 2006 such that it was 60% of the value of shipments to the US. Australia imported 30% more. Hong Kong, the UK, and Taiwan all had double digit growth.

Top 10 Export Categories 2002 (in baht)

1. Computers & Parts

2. IC (Industrial Commodities???)

3. Automobiles & Parts

4. Garments

5. Gems & Jewelry

6. Radios, T.V.

7. Canned Seafood

8. Plastic Pellets

9. Rubber

10. Rice

Representing 1,194 billion baht

Top 10 Export Categories 2006 (in baht)

1. Computers & Parts

2. Automobiles & Parts

3. IC (Industrial Commodities???)

4. Rubber

5. Plastic Pellets

6. Gems & Jewelry

7. Refine Fuels

8. Iron & Steel

9. Radios, T.V.

10. Chemicals

Representing 2,247 billion baht

Source Website Link - Export-Import Bank of Thailand

Export_Destinations.pdf

Top_10_Exports.pdf

[VegasVic]

I suppose this might be an interesting time to play some speculation games with the Thai Baht/USD Euro? Anybody got some smart advice before we place our bets?

If and when you think the dollar will go up, switch from baht to dollars. Maybe in a year and a half, if the presidency in the USA changes.

Met a guy in Lankawi not so long ago who was betting the farm on a rise in the Iraqi Dinar. I looked into it briefly, but ultimately lacked the testicular fortitude to put any money there. It's difficult to imagine that the Dinar has anywhere to go but up. But how long before it might do that? I can also imagine the currency of Iraq simply being changed to something else completely, thereby making Dinars worthless. Google for it if you're so inclined.

Generally, I'm not smart enough to play games with currencies. I'm also a bit older now, so less inclined to play risky games. About half of my retirement dollars are invested in real estate (housing on long term leased land) in the Chiang Mai area. Seemed a reasonably safe bet to me. Rental income for the present; no mortgages, and so the cost of purchase should be recaptured in about eight years. It saddens me greatly, but I expect Chiang Mai to become the next Bangkok. Seems well on its way to doing so. (I personally fret some about global warming, which means 1) I'm unlikely to buy anything in Phuket, Pattaya, or Bangkok, and 2) a "sudden increase" in the value of property around Chiang Mai does not sound unreasonable to me.)

For the moment, the Baht is likely to continue to stengthen as a long term trend. It seemed tremendously undervalued to me when I first began looking at it 5-6 years ago, perhaps as a result of the 1997 financial crisis in Thailand.

I wouldn't dream of telling anyone else what to do with their money. But I can say that I've elected to put a fair chunk of change into the Thai economy over the past few years, and that I will continue to do so. Given a "stable" US dollar (which we don't have, mind you), then I would expect the "fair value" of the Thai baht to be at around 25 baht to the dollar. That's where I think we're heading, anyway. (Instability in the US dollar may actualy result in a Baht that is valued more highly than this, relative to the dollar alone.)

My advice to me and me alone, then, is "buy baht."

Well,...the Japanese said they're not gonna play unless the Baht stabilizes at around 37.25, which is where they see the true value. And, given that they are the largest direct investors in Thailand, I put some value on their judgment. But, open to suggestions...Anybody?

Its not the direct Japanese investment in Thailand dropping off that should concern you, but the cheap money(.75%) that has been flowing out of Japan and artificially propping up the baht as well as equity markets in China, Thailand and throughout the region. The potential yen carry trade crash will be of real consequence to the region. Just look back to what happened in the yen carry trade crash in 1998, and then multiply it by 5 times or greater (because these carry trades are now leveraged by 10 and sometimes 20 times the actual value). Those of you who know what I am talking about here know that a sudden change in yen valuation could cause this house of cards to come tumbling down very quickly. Lets hope that the yen remains stable and this cheap money flow from Japan slowly dries up!

[ace]

Faaaaannntaaaaastic

I'm just, literally, just filling out my transfer details for quite a lot of 000's to Thailand for the condo, and what's the lead news item?

I've got at most 4 weeks - think it'll go down in that time? Or UP?

[the gent]

I suppose this might be an interesting time to play some speculation games with the Thai Baht/USD Euro? Anybody got some smart advice before we place our bets?

If and when you think the dollar will go up, switch from baht to dollars. Maybe in a year and a half, if the presidency in the USA changes.

Met a guy in Lankawi not so long ago who was betting the farm on a rise in the Iraqi Dinar. I looked into it briefly, but ultimately lacked the testicular fortitude to put any money there. It's difficult to imagine that the Dinar has anywhere to go but up. But how long before it might do that? I can also imagine the currency of Iraq simply being changed to something else completely, thereby making Dinars worthless. Google for it if you're so inclined.

Generally, I'm not smart enough to play games with currencies. I'm also a bit older now, so less inclined to play risky games. About half of my retirement dollars are invested in real estate (housing on long term leased land) in the Chiang Mai area. Seemed a reasonably safe bet to me. Rental income for the present; no mortgages, and so the cost of purchase should be recaptured in about eight years. It saddens me greatly, but I expect Chiang Mai to become the next Bangkok. Seems well on its way to doing so. (I personally fret some about global warming, which means 1) I'm unlikely to buy anything in Phuket, Pattaya, or Bangkok, and 2) a "sudden increase" in the value of property around Chiang Mai does not sound unreasonable to me.)

For the moment, the Baht is likely to continue to stengthen as a long term trend. It seemed tremendously undervalued to me when I first began looking at it 5-6 years ago, perhaps as a result of the 1997 financial crisis in Thailand.

I wouldn't dream of telling anyone else what to do with their money. But I can say that I've elected to put a fair chunk of change into the Thai economy over the past few years, and that I will continue to do so. Given a "stable" US dollar (which we don't have, mind you), then I would expect the "fair value" of the Thai baht to be at around 25 baht to the dollar. That's where I think we're heading, anyway. (Instability in the US dollar may actualy result in a Baht that is valued more highly than this, relative to the dollar alone.)

My advice to me and me alone, then, is "buy baht."

Well,...the Japanese said they're not gonna play unless the Baht stabilizes at around 37.25, which is where they see the true value. And, given that they are the largest direct investors in Thailand, I put some value on their judgment. But, open to suggestions...Anybody?

Its not the direct Japanese investment in Thailand dropping off that should concern you, but the cheap money(.75%) that has been flowing out of Japan and artificially propping up the baht as well as equity markets in China, Thailand and throughout the region. The potential yen carry trade crash will be of real consequence to the region. Just look back to what happened in the yen carry trade crash in 1998, and then multiply it by 5 times or greater (because these carry trades are now leveraged by 10 and sometimes 20 times the actual value). Those of you who know what I am talking about here know that a sudden change in yen valuation could cause this house of cards to come tumbling down very quickly. Lets hope that the yen remains stable and this cheap money flow from Japan slowly dries up!

Chicken or the egg?

Britain has sucked up for years what the Japanese have had to offer and is about to puke on its surfeit.

Even they are not immune to rising costs and the land of the similarly rising sun may yet see, at least for themselves, some welcome inflation. Just how the banking system in Britain copes will be interesting but the paradigm in the US, with their sub- prime woes hidden so far but like the proverbial iceberg will eventually make themselves felt, suggests that there will be much blood on the floor. Indebtedness might still lure Bernanke but eventually we will see the endgame of this particular cycle.

Frankly, the baht is worth a bagatelle of rice and little else but like a candle about to burn out it flares up and in so doing will doubtless attract whatever moths are temporarily dazzled thereby.

Edited July 5, 2007 by the gent

[LaoPo]

snip

LaoPo, I have been scratching my top and bottom trying to figure out how these export figures keep going up when everyone is paying in dollar denominated currencies; well almost everyone. Japan/US and large volumes. Good mystery best left to better brains than mine.

Posted these on the thread about the "crisis", but worth posting here. What you'll see is that the top 10 export product categories have changed recently. Iron & Steel, Chemicals, and Refine Fuels don't show up until recently. Garments, Rice, and Canned Seafood have fallen out of the top 10 since 2003. Some of the categories have doubled, or almost doubled (in baht terms so even higher in $ terms). Part of the reason rice fell off is that it took 130.8 billion baht to make the 10th spot in 2006. In 2002 it was 70 billion baht.

Also in terms of export destinations, China is gaining on the US and Japan with a 21.2% increase in baht value of exports between 2005 and 2006 such that it was 60% of the value of shipments to the US. Australia imported 30% more. Hong Kong, the UK, and Taiwan all had double digit growth.

Top 10 Export Categories 2002 (in baht)

1. Computers & Parts

2. IC (Industrial Commodities???)

3. Automobiles & Parts

4. Garments

5. Gems & Jewelry

6. Radios, T.V.

7. Canned Seafood

8. Plastic Pellets

9. Rubber

10. Rice

Representing 1,194 billion baht

Top 10 Export Categories 2006 (in baht)

1. Computers & Parts

2. Automobiles & Parts

3. IC (Industrial Commodities???)

4. Rubber

5. Plastic Pellets

6. Gems & Jewelry

7. Refine Fuels

8. Iron & Steel

9. Radios, T.V.

10. Chemicals

Representing 2,247 billion baht

Source Website Link - Export-Import Bank of Thailand

Thanks a lot Carmie6 ! Well done and I can indeed remember your other post with all details.

What's weird, is the enormous decline in Imports between 2005 versus 2006. Was the growth in 2005 still 25.1% (versus 2004) the growth in 2006 is down to just 2.5% and that's HUGE !

WHAT the heck happened ?

Only Fuels and Consumer goods are up: 15.2% and 8.6%. The rest is down....

What's worrying me much more is the EXPORT-SHARE in Baht of Agricultural and Agro-Industrial products: together combined it's just 16,1 % of total Thai Exports with a labor force of more than 50% of total Thai workers.

The rest is Manufacturing, mining, fuel and some minor products.

And that, Gentlemen (sorry Ladies), means that the rural poor Thai are more and more suffering, despite all the glorious messages* the Thai government is sending to the 'people', day in, day out !

* Like: Thai Rice Exports are UP.....yes, but the profits are DOWN !

Every day I have more and more a feeling that the Thai are fooled by their government; it's no longer LOS...it's LOM = Land Of Mysteries

LaoPo

[Spee]

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.

IMHO, it's not the shifting goalposts that are the issue. Rather, it's the amount of the fixed income and the choice of residence location.

For a person to only have 1500/mo in retirement income, the circumstances of the person's career employment income and amount of life savings after 40 or so years of work would have to be rather unremarkable, far below average to be specific. An example would be someone who never earned more than about 25k per year, and saved about 80k. That's not much for a typical work career of 40-45 years.

For an average post-retirement life span of about 15 years, this would provide about 1500/mo in retirement income. Under these circumstances, how would a person ever afford to move to a place like Thailand to retire, much less be able to little more than eek out a meager exisitence including not being able to afford to even travel back to the US unless part of the retirement income was saved.

A financially comfortable retirement life in Thailand should be considered a privilege not a right. Typically, most privileges require a modicum of work and sacrifice to achieve and maintain. An unremarkable employment career and minimal savings does not seem to be indicative of a lifetime of work and sacrifice.

Or another way, if an American Pensioner retired on a fixed income of 1500/mo and made a decision to retire in Thailand, this person is almost certainly going to have bigger problems than worrying about the exchange rate. It just doesn't seem like a very realistic scenario.

[geriatrickid]

We'll know if the valuation changes bring advantages to Thailand if;

1. Thai business follows the minister's advice and uses the baht advantage to invest in equippment & infrastructure which increases productivity.

2. Thai debt denominated in $US is paid off faster.

If there isn't a positive change in these 2 indicators, then there is going to be a horrible day of reckoning when the trend reverses.

If there is no investment in some infrastructure and $US denominated debt increases, that's when the deck of cards will begin to shake.

[LaoPo]

We'll know if the valuation changes bring advantages to Thailand if;

1. Thai business follows the minister's advice and uses the baht advantage to invest in equippment & infrastructure which increases productivity.

2. Thai debt denominated in $US is paid off faster.

If there isn't a positive change in these 2 indicators, then there is going to be a horrible day of reckoning when the trend reverses.

If there is no investment in some infrastructure and $US denominated debt increases, that's when the deck of cards will begin to shake.

1. So why aren't they doing that ? Most -heavy- equipment/machinery and infrastructure equipment is imported but shows a STRONG decline. I'm still puzzled about that. See previous post and link, posted by Carmine6.

LaoPo

[Jai Dee]

NESDB and BOT believes government should not intervene in Thai baht appreciation

The National Economic and Social Development Board and the Bank of Thailand believe that state intervention in the Thai baht currency appreciation may result in a repeat of the 1997 Asian economic crisis.

The Secretary General of the National Economic and Social Development Board, Mr. Ampol Kitti-ampol (อำพน กิตติอำพน), reported on the baht currency's continual appreciation in value over the past few months. Mr. Ampol said that he and officials from the Bank of Thailand are in agreement that government intervention in the Thai baht's value will cause drastic results, and may even trigger an economic crisis, much like the one which transpired in 1997.

The NESDB Secretary General and the Bank of Thailand believe that the government should allow natural market mechanisms to control the Thai baht's value. Mr. Ampol observed that other currencies are also appreciating in value, therefore the Thai currency's condition is not an anomalous incident.

Source: Thai National News Bureau Public Relations Department - 07 July 2007

[Sir Burr]

As has been proved by the ERM sterling crisis and the 1997 Thailand crisis, no country's central bank is big enough to intervene in the exchange rate of a currency if speculators are determined to bet against it. The free markets have much, much more money than any central bank.

[Old Man River]

We'll know if the valuation changes bring advantages to Thailand if;

1. Thai business follows the minister's advice and uses the baht advantage to invest in equippment & infrastructure which increases productivity.

2. Thai debt denominated in $US is paid off faster.

If there isn't a positive change in these 2 indicators, then there is going to be a horrible day of reckoning when the trend reverses.

If there is no investment in some infrastructure and $US denominated debt increases, that's when the deck of cards will begin to shake.

1. So why aren't they doing that ? Most -heavy- equipment/machinery and infrastructure equipment is imported but shows a STRONG decline. I'm still puzzled about that. See previous post and link, posted by Carmine6.

LaoPo

The decline stems from the coup. The Junta had put the breaks on infrastructural spending as their focus has been on corruption in previous government spending. Now that the economy is going south, they are talking about ramping it up (defense spending will be a big part of this). However, government spending takes time. Private investment is also down and will remain this way until companies have an incentive to produce more (i.e. consumer spending picks up). Right now, consumer saving is on the rise.

[Old Man River]

As has been proved by the ERM sterling crisis and the 1997 Thailand crisis, no country's central bank is big enough to intervene in the exchange rate of a currency if speculators are determined to bet against it. The free markets have much, much more money than any central bank.

What you say is correct, although the issue right now for the THB is not speculators, but instead investors (fund managers) fleeing the weakening USD. Some of this investment is coming to Asia and part of this to Thailand. The BOT is used to these investors and therefore are not alarmed. However, if the appreciation of the THB against the USD outpaces other countries competing against Thailand for agricultural exports to the US, then the BOT will be alarmed. Right now, exports are the only thing Thailand has going for it.

[Jai Dee]

Asian Currencies: Thai Baht Near Decade-High on Fund Inflows

Thailand's baht held near the strongest in a decade as overseas investors increased purchases of the nation's stocks.

The baht had the biggest weekly gain since January after rising through 34 per dollar on July 5 for the first time since the Asian financial crisis of 1997. A break of 36 prompted the government on Dec. 18 to impose restrictions on capital inflows, a move that sparked a 3.2 percent decline in the currency that week. Bank of Thailand Governor Tarisa Watanagase on July 5 said the bank was "working'' to curb the advance.

"We have seen a pretty decent pick-up in foreign equity inflows,'' said Craig Chan, Lehman Brothers Holdings Inc.'s Asian currency strategist in Hong Kong. "If the currency is consistently appreciating, and it becomes rapid, there is some risk of intervention.''

The baht was at 34.03 per dollar in onshore trading yesterday, taking gains for the week to 1.5 percent, the most since the five days ended Jan. 19. It rose as high as 33.97 on July 5, according to data compiled by Bloomberg.

The baht is the best-performer over the past month among 10 of the most-active currencies in Asia.

Capital controls in December were aimed at stemming a 15 percent gain in the baht in 2006 and created a two-tier onshore and offshore currency market. In March, curbs were lifted on foreign investment in baht-denominated bonds, mutual and property funds, as long as they were hedged.

Overseas investors purchased $511 million more in Thai stocks than they sold in the three days through to July 4, compared with net sales of $5 million in the same period last week. They bought a net $247 million on July 3, the most since April 5, 2006.

Elsewhere in Asia, Taiwan's dollar dropped 0.2 percent from June 29 to NT$32.809, according to Taipei Forex Inc. The Philippine peso advanced 0.4 percent to 46.065 this week. The Malaysian ringgit and the Indonesian rupiah were little changed in the five-day period at 3.4492 and 9,033, respectively. The Vietnamese dong traded at 16,128 from 16,135 on June 29.

Source: Bloomberg - 07 July 2007

[wintermute]

We'll know if the valuation changes bring advantages to Thailand if;

1. Thai business follows the minister's advice and uses the baht advantage to invest in equippment & infrastructure which increases productivity.

2. Thai debt denominated in $US is paid off faster.

If there isn't a positive change in these 2 indicators, then there is going to be a horrible day of reckoning when the trend reverses.

If there is no investment in some infrastructure and $US denominated debt increases, that's when the deck of cards will begin to shake.

1. So why aren't they doing that ? Most -heavy- equipment/machinery and infrastructure equipment is imported but shows a STRONG decline. I'm still puzzled about that. See previous post and link, posted by Carmine6.

LaoPo

The decline stems from the coup. The Junta had put the breaks on infrastructural spending as their focus has been on corruption in previous government spending. Now that the economy is going south, they are talking about ramping it up (defense spending will be a big part of this). However, government spending takes time. Private investment is also down and will remain this way until companies have an incentive to produce more (i.e. consumer spending picks up). Right now, consumer saving is on the rise.

I don't understand the Thai government rationalization (if you can call it that) in blowing billions of baht for the military defense budget. The military is largely a wasteful, consuming, and dormant institution in peacetime. Thailand has no real external threats aside from a mild insurgency in the south and maybe a few border skirmishes with drug bandits. Blowing all this money on hardware that will most likely just be used to inflate the ego of a few generals is a shining example of how Thailand is ruining itself. Not to mention that nearly all of their military hardware is imported from other countries so it doesn't help domestic industries either. None of this actually helps the primary concerns of Thailand such as the economy, education, or bettering infrastructure.

[astral]

As has been proved by the ERM sterling crisis

I missed out on that one.

I could have made 50% within weeks, it

was so obvious what was going to happen.

[WalterTP]

Baht rises to strongest level in decade

The Thai baht has appreciated to 34.38-34.39 to the US dollar

I still don't understand the difference between this rate and rate quoted by xe dot com

"XE.com's Currency Update Service writes: THB Thailand Baht 31.7498599384/USD"

...something about onshore/offshore? Can someone enlighten me?

btw, according to MarketWatch dot com today:

BULLETIN >> British pound touches 26-year high against U.S. dollar: $2.0146

If you transfer $ to Thailand you MUST not allow you bank to covert to Baht in the US or you will receive the lower conversion rate. Send dollars and the Thai bank will convert at the higher rate, about 10% higher. I'm not sure why but it is so.

[DFCarlson]

Right now, ThaiVisa shows 34.05 baht/dollar at "mid-market rates".

Bangkok Bank shows 33.64 baht /dollar to exchange $50 - $100 USD.

Can you actually exchange $ for baht at the ThaiVisa rate?

What does "mid-market" mean?

[Mid]

What does "mid-market" mean?

exactly that , ie the middle of the spread , after all it's a market not a shop .

as to the rates , best live rate you'll find without a subscription will have at least a 30 min delay .

[yoshiwara]

What does "mid-market" mean?

exactly that , ie the middle of the spread , after all it's a market not a shop .

as to the rates , best live rate you'll find without a subscription will have at least a 30 min delay .

yes if for example the mid-market rate is say 35baht to the $ and a dealer has a 10% margin then you will be offered more like 31.5 baht from 1 of the currency dealers assuming you are trading a minimum amount eg $10k and if you are wanting $ for baht then 38.5 baht gets you a $. the margin here is exaggerated and also varies with the size of the trade.

the mid-market rate seen in a newspaper is often confused by tourists with the quoted rates seen outside banks which is normally a relatively firm offer to trade at a specified rate for the day assuming low fluctuation but even then you can walk into the bank and get a slightly different rate.

[POMPOOEYMAN]

To cut the wheat from the chaff.

Any british person travelling or living in thailand must open a NATIONWIDE FLEXI ACCOUNT with at least 2 cards (in case the atm eats one or you lose it)

You can if you want walk all round thailand with travellers cheques and cash trying to beat the nationwide rate, which you might just slightly but is it worth the AGGRAVATION

I whole heartedly agree with most of the postings made here in regards to a weak dollar verses the thai baht.

But in my oppinion it is not quite as bad as it first seems.

The thai economy is walking a tightrope at the moment and the rope they are walking is made up of foreign investment.

But as a stand alone economy the rope looks very threadbare.

FUEL prices in thailand are going up as we speak. My village has never seen so many people in it. All local builders come home because there is no work for them.

Go to any village market and speak to the locals and watch how much money is being spent and you will see what i mean. The squeeze on the thai economy is only now starting to take hold.

There is a lot of ARTY FARTY rubbish talked when it comes to Financial and Economic issues and you can get a much clearer picture of things by keeping your eyes and ears open Locally.

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

Please don't rush in and do something now that you may regret later. I.E Leave LOS POMPOOEYMAN

Edited July 8, 2007 by POMPOOEYMAN

[Spee]

The thai economy is walking a tightrope at the moment and the rope they are walking is made up of foreign investment.

But as a stand alone economy the rope looks very threadbare.

Every economy around the world depends on foreign investment. The Thai economy is no more or less stable than any other Pac-rim economy, with the exception of Hong Kong and Singapore. If you think the Thai economy is unstable, try looking at the Japanese or South Korean economies.

IMHO, viewing a country's economy as a stand-alone entity makes no sense, unless one is speaking about some isolated regime like North Korea (whose economic woes are caused by its self-imposed isolation). The only concern that any country's economy ever has is from a government which persists in meddling in free market enterprise. One has to look no further than Hong Kong and Singapore.

[POMPOOEYMAN]

The thai economy is walking a tightrope at the moment and the rope they are walking is made up of foreign investment.

But as a stand alone economy the rope looks very threadbare.

Every economy around the world depends on foreign investment. The Thai economy is no more or less stable than any other Pac-rim economy, with the exception of Hong Kong and Singapore. If you think the Thai economy is unstable, try looking at the Japanese or South Korean economies.

IMHO, viewing a country's economy as a stand-alone entity makes no sense, unless one is speaking about some isolated regime like North Korea (whose economic woes are caused by its self-imposed isolation). The only concern that any country's economy ever has is from a government which persists in meddling in free market enterprise. One has to look no further than Hong Kong and Singapore.

[astral]

To Pompooeyman, it is usual to add something when you reply.....................

[Mid]

My village has never seen so many people in it. All local builders come home because there is no work for them.

there it is people ,

stop , think and smell the coffee ..............................

[highdiver]

My village has never seen so many people in it. All local builders come home because there is no work for them.

there it is people ,

stop , think and smell the coffee ..............................

sedn them over to Koh Samui and Phuket. I am sure with all the construction and the piles of construction due to start they will find job very easy.

and as for waking up and smelling the cofee.

i posted this in the "Economy in Crisis" as a joke but guess what happened.

but if you are a speculator then here is a nice tip. .

every time the dooms day brigade mainly our dear MId and bingo bongo publish a dooms day prediction or whine about the economy the stock market goes up.

gues what hapened today???

SET Index 844.34 +11.96 12,804.10

SET100 Index 1,312.98 +20.71 9,310.86

SET50 Index 605.24 +9.65 7,021.26

mai Index 237.36 +1.63 67.54

its shooting up.

please Mid keep up those predictions. i am having barrels of the cool aid.

at some point the BOT will intervene and it has enough forign reserves to do so. untill then thailand seems very investment friendly. and the request for local curency will grow as more and more forigners relise that this country is actually doing great. with or with out the Junta.

[Mid]

let them eat cake ..................................

[midas]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

[Jai Dee]

Thai shares jumps 1.47 per cent in morning trading session

The SET index rose on Monday at 11 am by 1.47 per cent at 844.58 on gains in energy, banking, and petrochemical stocks with active trading volume of Bt10.99 billion.

Stock analysts said the rally was due mainly to continual foreign capital flows into Asian markets. The gains in blue chips stocks was on the back of positive prospect on the second quarter earning results.

IRPC was the most active stock gaining 2.94 per cent at Bt7, while PTT rose 2.04 per cent to Bt300. Thai Oil gained 1.28 per cent to Bt79, while Krung Thai Bank rose 0.76 per cent to Bt13.3.

Source: The Nation - 09 July 2007

[nick2k]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.