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Rising Baht Sparks Fears of Another 'Tom Yam Kung' Crisis


webfact

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1 hour ago, chiang mai said:

Excellent point. During Covid, manufacturers were using shipping containers to store their product quay side, because it was cheaper to store it there than in warehouses. That led to a massive increase in container and shipping costs, as well as a shortage of supply.


I can agree, that manufacturers were using shipping containers to store their products "quay" side, but not because it was cheaper to store it there than in warehouses. Container rental charges is deliberately set high, in order to avoid this scenario, but when warehouses are full, you will have no other options.

Edited by Xonax
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6 hours ago, webfact said:
  • Factory closures
  • Rising unemployment
  • Reduced consumer spending
  • Halted industrial investments
  • Increased household and business debt
  • Higher bank loan costs due to rising bad debt reserves
  • Banks limiting loans to struggling businesses
  • Reduced government tax revenues and budget cuts
  • Lower government spending
  • A shrinking GDP
  • Declining foreign currency reserves

 

4 hours ago, scubascuba3 said:

Importing from China even cheaper, 📉 Thai jobs down

 

So, a perfect time to increase the minimum wage - not.

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5 minutes ago, Eric Loh said:

Hard to understand the logic. 10% increase in Bath's exchange is due to the dollar depreciation by 10% against the Baht. Strange logic to compound both to 20%. Dollar depreciation is against all currencies; none spared. Other countries export will  faced the same increased in their local currencies. The baht appreciation will lower the cost of imports of raw materials and reduce the COP which they can deploy to leverage the Baht appreciation. Illogical comparison against TYK crisis which was due to excessive foreign debts and a small foreign reservce to defend the Baht. Not the situation now. 

100% agreed, the article tries to make connections that aren't there plus the math is totally screwy. 

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