Jump to content

Thai Baht Exchange Rate So Low How Are You Dealing With It?


Recommended Posts

31 minutes ago, shackleton said:

Not a problem I am content with 44-45 baht to the British pound 🤑

When I was first planning my retirement in Thailand the exchange rate was approx 55:1 so I used 50:1 for my plans then BREXIT struck & it dipped below 39 so I changed to using 35:1 as my “Worse Case” scenario. 

 

When I finally pulled the trigger (Dec 2019) it was around 40:1 but I’d already “Feathered my Nest” (from SGD at around 22.5:1) for >3 years so didn’t need to bring much over from the UK (£6,000 pa exchanged with a mate who works here so he could top up his pensions in the UK).
 

From another thread I read that 25:1 might be the “Sensible” number for USD. 
 

Edited by Mike Teavee
  • Agree 2
Link to comment
Share on other sites

All currencies these days are fiat currencies.  They are backed by nothing durable.  They are backed by public confidence, and that relies upon the supply of a currency being related to the availability of goods and services.  "Money-printing", e.g. through ever-expanding unproductive debt, obviously increases the money supply resulting in its devaluation (commonly referred to as "inflation").

 

Financialisation of government debt - central bank loans to government to cover ever deepening budget deficits - is likely to get worse in the foreseeable future.  So be prepared!

 

In the days when paper money was promissory notes to supply gold, its purchasing power fluctuated only slightly over centuries.

 

Gold is difficult to wrest from the ground, and cannot be conjured up out of thin air.  It is a hard asset.  Not a credit note.

 

The down-side of gold is that it does not produce interest or dividends, but on the contrary there is a cost of storage and insurance (except to the extent that one may hold a small amount in a secure place at home)

 

Putting some cash into the shares of a gold royalty/streaming or established mining company (NOT an exploration company - highly speculative) can be a way of deriving some income from gold investment.  With leverage - up or down - in capital value, depending upon whether the gold price is rising or falling.

 

When purchasing bullion that is to be stored and insured, it is important to make sure that the dealer transfers it to a reputable, specialised bullion storage company and that you personally are listed as the owner.

 

Some Thais lost their stored gold during the crisis of 1997.  Their dealers retained the gold in their own name [it was not "allocated"], perhaps holding it as security against borrowing, and when they went bankrupt their creditors took the gold.

 

Gold that is held in secure vaults is very quickly and easily sold in on-line dealing, using the same dealers through which it was purchased.

 

If interested, it may be worth perusing these sites :

 

https://www.bullionvault.com/

 

https://swpcayman.com/

 

https://www.goldcore.com/

 

  • Confused 3
  • Sad 1
Link to comment
Share on other sites

All kidding aside,  why does the Baht have an inverse value to the USD and other western currencies?  Why can’t the Baht go down when western currencies go down?  I hardly think the Baht can be considered “risk on” and such a compelling value for traders.

  • Haha 2
Link to comment
Share on other sites

19 minutes ago, Isaan sailor said:

All kidding aside,  why does the Baht have an inverse value to the USD and other western currencies?  Why can’t the Baht go down when western currencies go down?  I hardly think the Baht can be considered “risk on” and such a compelling value for traders.

 

https://www.todayonline.com/singapore/factors-behind-surge-thai-baht-and-why-authorities-bangkok-are-worried

  • Thanks 2
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...