Bank of Thailand Intervenes to Manage Baht's Exchange Rate

[Stargeezr]

Did this woman used to work for the Tourism sector of Thailand, her math skills seem to be the same.

  What a chuckle. maybe a small demotion and additional training is need for this person.

[lordgrinz]

1 minute ago, Stargeezr said:

Did this woman used to work for the Tourism sector of Thailand, her math skills seem to be the same.

  What a chuckle. maybe a small demotion and additional training is need for this person.

 

Yes, I think using her logic, since the baht is stronger now, they can now pay her less which will help her "better manage" her "spending in Thailand".

[lastchance]

Today we are seeing a meaningful drop of the baht's value versus USD, GBP, EUR, CNY, etc. Maybe they actually are intervening in the right direction.

 

Really doubt any regular tourist gives a f about even a 10% currency fluctuation. I haven't heard of anyone I know ever checking exchange rates for any trip.

 

But I'm cheap as hell. I usually take one domestic trip per month, and I've put a pause on that until the exchange rate is where I want it to be again. Sorry Thailand, less money for you.

[Chivas]

8 hours ago, koolkarl said:

Bank of Thailand intervenes all the time, this is not an exception.  The baht is a controlled currency. 

 

Go on then I'll take the bait

[chiang mai]

Folks may want to consider the future implications for THB as a result of what is happening to the YEN.

 

Historically, the Japanese companies in Thailand have not repatriated their profits because Japanese interest rates have been negative, this means the BOJ charges an overnight fee for holding that money. Now that BOJ has raised rates there is an incentive for those companies to repatriate the funds and this means selling Baht to buy YEN. The amount of overseas profit stored by Japanese companies is estimated to be in the region of USD 68 billion although not all of this in in Thailand. Nevertheless, the impact on THB could be significant.

 

[CallumWK]

Hell they should know when to stop intervening. Would now get 1 baht more for my US$ compared to what I got on Monday. Could live a few months from the difference

 

[Gottfrid]

On 10/2/2024 at 9:08 AM, KannikaP said:

So will the price of Wine, Guinness and Volkswagens go down?

Nah, if at is you will be right. The next step, though. Let´s raise the import tax on cars, luxury items, tobacco and alcohol. 😉 

Be sure, they will always find a way. 🤣

[Al BB]

On 10/2/2024 at 10:15 AM, lordgrinz said:

 

The entire article doesn't state what "both these interventions" are, so what are these "interventions"? 

Maybe they meant to say "manipulations" ?  I have compared the Baht (recently on Xe) with a "basket" of currencies, they have all weakened , not just the US Dollar. As someone remarked, MAYBE they are loading up on Dollars at 32 to unload later at Circa 36 to help pay for the 10K Vote Buying ? Who knows, TIT. 

[chiang mai]

The US Dollar Index has been strengthening since Sunday, from 100 to 102 today. I guess this is a flight to safety in advance of Israel's attack on Iran.

[Luka77]

On 10/2/2024 at 1:44 PM, gearbox said:

Press the option on the left "Accept without currency conversion" to withdraw without the 5.5% conversion fee. This attempt to use bad conversion rate is common in many countries.

Thanks for the info, I did withdraw today and pushed the one on the left, it charged me $314 instead of $334. but it still quite a ridicules extra fee. I don't understand why they offer the additional 5.5% fee option, why would they think foreigner want to pay additional 20 dollars. seems like they just want to trick as many as possible by pushing the 5.5 percent option.

[BuddyPish]

On 10/2/2024 at 2:28 PM, koolkarl said:

Bank of Thailand intervenes all the time, this is not an exception.  The baht is a controlled currency. 

 

Utter drivel

[chiang mai]

Just now, BuddyPish said:

 

Utter drivel

Er, not really. THB is not freely convertible, it cannot be freely exported except in very limited amounts, more generously to neighbouring countries but not further afield. And whilst THB is traded on international markets, it is not traded for delivery. In fact, overseas banks are restricted as to how much THB they cam hold, without being cut off from transacting via BOT. BOT has been relaxing these rules over the years but it is still a controlled currency.

[BuddyPish]

6 hours ago, chiang mai said:

Er, not really. THB is not freely convertible, it cannot be freely exported except in very limited amounts, more generously to neighbouring countries but not further afield. And whilst THB is traded on international markets, it is not traded for delivery. In fact, overseas banks are restricted as to how much THB they cam hold, without being cut off from transacting via BOT. BOT has been relaxing these rules over the years but it is still a controlled currency.

 

It isn't pegged to the USD like the yuan and the Vietnamese dong are. Those are "controlled" currencies.

[chiang mai]

2 hours ago, BuddyPish said:

 

It isn't pegged to the USD like the yuan and the Vietnamese dong are. Those are "controlled" currencies.

That's a completely different issue, pegging is IMF rules which doesn't effect the convertibility of a currency, a pegged currency can still be exported and exchanged at will. Anyway, YUAN is not hard pegged to USD, it dropped the hard peg in 2005 and has managed the currency against a basket every since. And VND is not hard pegged either, Vietnam uses the crawling peg which means VND fluctuates within a range.

 

There are several different methods of managing currencies under IMF rules:

 

Hard peg

Crawling peg

Managed floating peg

Floating peg

Horizontal peg

 

Perhaps easier to read this:

 

https://www.imf.org/external/np/mfd/er/2004/eng/0604.htm

[OJAS]

Unfortunately for us Brits, the GBP's cause has not been helped by Andrew Bailey at the Bank of England blabbing his big mouth off on the subject of interest rates yesterday ☹️

 

https://www.bbc.com/news/articles/cx2lp5l9dpro

 

 

[KannikaP]

5 hours ago, chiang mai said:

Hard peg

Crawling peg

Managed floating peg

Floating peg

Horizontal peg

Jake the Peg?

[chiang mai]

24 minutes ago, OJAS said:

Unfortunately for us Brits, the GBP's cause has not been helped by Andrew Bailey at the Bank of England blabbing his big mouth off on the subject of interest rates yesterday ☹️

 

https://www.bbc.com/news/articles/cx2lp5l9dpro

 

 

I disagree, everyone needs guidance on these things and the central bank governor is the one to provide it. Just as everyone listens intently to the Fed Chair, folks need to listen to Bailey and other central bank governors for clues. 

[koolkarl]

15 hours ago, BuddyPish said:

 

Utter drivel

Really. I am a full time fx trader for 40 years.

[BuddyPish]

1 hour ago, koolkarl said:

Really. I am a full time fx trader for 40 years.

 

So what?

So am I

Doesn't prove anything

 

 

[BuddyPish]

2 hours ago, OJAS said:

Unfortunately for us Brits, the GBP's cause has not been helped by Andrew Bailey at the Bank of England blabbing his big mouth off on the subject of interest rates yesterday ☹️

 

https://www.bbc.com/news/articles/cx2lp5l9dpro

 

 

 

Unfortunate for British migrants living here, yes but for the hordes of mortgage holders living in the UK, it's fantastic news.

[koolkarl]

4 hours ago, BuddyPish said:

 

So what?

So am I

Doesn't prove anything

 

 

Sure.

[chiang mai]

21 hours ago, BuddyPish said:

 

Utter drivel

I forgot to say that BOT does intervene in FOREX markets continuously, they are required by IMF rules to do so. The managed peg rules require them to intervene to smooth out the peaks and valleys in the exchange rate to keep the rate in an optimal range, where ever it is practicable to do so. ASEAN rules also require BOT to keep the THB exchange rate, within a range specified in the ASEAN agreement, of other ASEAN currencies. This practice is in line with other Thai economic policies where costs to consumers, exporters and importers, is smoothed out over time, the Fuel Subsidy Fund being another good example  of this.

[chiang mai]

The US jobs report came in hot, the USD DI jumped to 102.5 so USD strengthened. Expect a poorer THB exchange rate later today.

 

https://www.marketwatch.com/investing/index/dxy

[oceanbluejewell]

Thank you for the comments everyone.

 

I have simple question as a Non-Thai National who lives in Thailand, how can I hedge my exposure to currency fluctuations in Thai currency?

 

Note: My primary income is CAD & USD.

 

Your suggestions will be appreciated & if any additional information is needed please let me know.

[fleccer]

Bank of Thailand Intervenes to Manage Baht's Exchange Rate? 🤔 But with poor results as far as I can see  given the surge it had on last Thursday and Friday. 

I'm talking about Euro, and British Pound since the US Dollar is not the only ones. This surge of the Thai Baht is impacting the whole western currencies

 

 

 

[Isaan sailor]

Thai Baht valuation makes no sense.  USD over 106 on Traidingview—matching the same level on April 16.   Yet, April 16 USD / Baht on Wise over tb36.  Today USD 34.51 on Wise.  What has changed at Bank of Thailand?