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

[chiang mai]

48 minutes ago, Enzian said:

Is it possible the BOT is not concentrating on inflation, but rather on discouraging borrowing and reducing the amount of household debt--something that the banks themselves should be doing through their underwriting practices but aren't doing very well? Also, higher--or rather, historically normal--rates should encourage saving in preference to consumption, which would improve household balance sheets. I can't see these current rates leading to deflation; I suspect it would take stronger medicine for that.

I think Thai rates weren't cut because doing so would mean even greater capital outflows and further decentivise capital inflows.

[JackGats]

I don't wish for the baht to become too weak. A strong baht keeps the cheap hordes away.

[baansgr]

11 hours ago, chiang mai said:

International Tourism is not Thailand's bread and butter, exports is, Tourism is nothing more than an additional course in the meal that helps with Consumer Spending at the grass roots level. International Tourism is 12% of GDP on a good day, exports is around 60%.

 

Also, can you show us how and where this manipulation of THB takes place, lots of people say it exists but nobody yet in over two decades on this forum has been able to say how and where! On the other hand, the map of USD/THB compared against DXY explains the THB rises and falls nicely.

Tourism GDP has been discussed till death many times and it's really 30%

[3NUMBAS]

12 hours ago, chiang mai said:

It's the nickname for the Asian Crash on 1997

Yeah 100 baht to the pound it was great

[chiang mai]

25 minutes ago, baansgr said:

Tourism GDP has been discussed till death many times and it's really 30%

Domestic and International, 22% combined at best, unless you can prove otherwise.

 

Domestic = 9%

International = 12%

[chiang mai]

1 hour ago, baansgr said:

Tourism GDP has been discussed till death many times and it's really 30%

 

Edited yesterday at 12:49 PM by chiang mai

[Dogmatix]

Prachai Leophairat, CEO of TPI Polene Public Company Limited was the biggest non-performing debtor in the Tom Yam Kung crisis because the baht declined so much that he couldn't service the foreign currency debt he had foolishly taken on.   Now he is whining about a rising baht.

 

[Karma80]

The Bangkok Post reports the Thai Central Bank admitted today it intervened in the Thai Baht and appreciated the value, although it happened faster than they thought. Seems this is an intentional strategy and the impacts on tourism have been considered....

[SingAPorn]

The Bhat is overvalued. No tourists will spend of if they do spend, they will spend far less. The proper rate for the Bhat should be to give no less then 45 THB for 1 €uro handed over the counter.