Economy The Thai Baht Paradox: Currency Climbs as Economy Falters

[BayArea]

9 hours ago, spidermike007 said:

Mr. Trump is taking a wrecking ball to the pillars of American power and innovation. His tariffs are endangering U.S. companies’ access to global markets and supply chains. He is slashing public research funding and gutting our universities, pushing talented researchers to consider leaving for other countries. He wants to roll back programs for technologies like clean energy and semiconductor manufacturing and is wiping out American soft power in large swaths of the globe.

China’s trajectory couldn’t be more different.

 

9 hours ago, spidermike007 said:

Yet Mr. Trump remains blindly fixated on very harmful tariffs. He doesn’t even seem to grasp the scale of the threat posed by China. Before the two countries’ announcement last Monday that they had agreed to slash trade tariffs, Mr. Trump dismissed concerns that his previous sky-high tariffs on Chinese goods would leave shelves empty in American stores. He said Americans could just get by with buying fewer dolls for th

 

9 hours ago, spidermike007 said:

 

Mr. Trump’s blinkered obsession with short-term Band-Aids like tariffs, while actively undermining what makes America strong, will only hasten the onset of a Chinese-dominated world.

Mike, your constant obsession with Trump is very unhealthy. Stick with your complaints regarding high tariffs on imported wine.

[hotandsticky]

11 minutes ago, BayArea said:

 

 

Mike, your constant obsession with Trump is very unhealthy. Stick with your complaints regarding high tariffs on imported wine.

 

 

It is also becoming increasingly tedious.

[Pouatchee]

15 hours ago, KireB said:

And how exactly is the Baht manipulated? Could you explain your claim?

 

🇹🇭 How the Baht Is "Managed":

1. Intervention in the foreign exchange market

• The BoT buys or sells USD or other foreign currencies to stabilize the Baht.

• If the Baht strengthens too much (hurting exports), the BoT buys USD and sells Baht to weaken it.

• If the Baht weakens too much (raising import costs and inflation), the BoT does the opposite.

2. Capital controls (soft measures)

• In the past, Thailand has used capital control tools to limit speculative inflows/outflows.

• For example: restrictions on short-term bond purchases by foreign investors, or reporting requirements on currency swaps.

3. Foreign reserve buildup

• The BoT has accumulated large reserves (hundreds of billions USD) partly to manage currency stability and avoid shocks.

• Critics argue that stockpiling reserves can artificially weaken the Baht, aiding Thai exports — which some call “manipulation.”

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🌎 International Viewpoint: Is this "Currency Manipulation"?

The U.S. Treasury periodically reviews countries for currency manipulation. The criteria include:

• Large trade surpluses with the U.S.

• Persistent one-sided currency intervention

• Significant current account surpluses

Thailand has been watched, but not formally labeled a “manipulator” in recent U.S. Treasury reports. However, some critics (mainly exporters or financial observers) argue that BoT policies intentionally keep the Baht undervalued to boost exports.

[spidermike007]

1 hour ago, BayArea said:

 

 

Mike, your constant obsession with Trump is very unhealthy. Stick with your complaints regarding high tariffs on imported wine.

I do realize truth can be very disturbing when it's of such a ridiculous nature. 

[spidermike007]

1 hour ago, BayArea said:

we have many posters on this forum who despised Trump so much that any chance they get to discredit him regardless of topic, they do it without any hesitation. 

like we said, he's living rent free in their head. 

We have at least an equal number of posters on this form who support Trump, and even just the idea of criticizing a single policy of his is totally objectionable to them, and something that they would never have the courage to do. 

[Harrisfan]

1 hour ago, BayArea said:

 

 

Mike, your constant obsession with Trump is very unhealthy. Stick with your complaints regarding high tariffs on imported wine.

Yes it is unhinged

[Cameroni]

It is only a "paradox" if you do not understand that the performance of the almighty dollar affects the exchange rate of all other currencies. 

 

Once you understand it, it will all make sense.

 

Dollar weak, Baht goes up. Very logical.

[scoobyguy]

12 minutes ago, Cameroni said:

It is only a "paradox" if you do not understand that the performance of the almighty dollar affects the exchange rate of all other currencies. 

 

Once you understand it, it will all make sense.

 

Dollar weak, Baht goes up. Very logical.

But its not just usd its also increasing against the GBP, CAN$, Yen, Euro, AUS$ and just about every other currency.

[flexomike]

6 hours ago, BayArea said:

we have many posters on this forum who despised Trump so much that any chance they get to discredit him regardless of topic, they do it without any hesitation. 

like we said, he's living rent free in their head. 

Spidermike, Tug, Jingthing just to name a few