Baht Value Against Euro

[dddk]

Hi

If there are any specialists here.. could any of them explain why euro is still getting stronger against euro.. but thai bhat seems to get stronger against euro

Do you feel this is going to last and euro could fall to 50 baht or less?? or do you think it could go higher than 52 against baht???

Thanks

Have a nice week end

Dominique

[loong]

If there are any specialists here.. could any of them explain why euro is still getting stronger against euro

eoro getting stronger against the euro?????

[francois]

hi

reading betwen lines ....

us$ is down and so euro is up ...

as long as usa keeps the $ low the euro will be high ....

the rest of it is a story of currency exchange, yesterday euro @51 ...could go

up a bit more than this, I'm not an expert to say things like financial forecast

francois

[nogutsnoapplepie]

hi

reading betwen lines ....

us$ is down and so euro is up ...

as long as usa keeps the $ low the euro will be high ....

the rest of it is a story of currency exchange, yesterday euro @51 ...could go

up a bit more than this, I'm not an expert to say things like financial forecast

francois

<{POST_SNAPBACK}>

Best Exchange Rates in Thailand.

http://www.scib.co.th/Bankrate/exchange_rate.htm

[Axel]

...

I'm not an expert to say things like financial forecast

francois

<{POST_SNAPBACK}>

Francois, the last word of an expert before the machine exploded: 'It is not possible.'

Experts know nothing, but when my som tan lady starts buying Euro, I follow...

[marto]

I am not a specialist - but - last two years we have been exporting some goods from Thailand. Our Thai partners are fixed their prices in USD. Of course - for larger amounts we have discounts. It's OK for us because we sell these goods in Euro.

Lately I buy cheaper and cheaper USD At the moment exchange rate in Thailand is 1 $ = 41.64 B for 1 Euro = 52.54 B /26% margin/. In my country for 1 Euro I buy 1.30 USD /30% margin/! One item I buy for 1 USD and I sell it for 1 Euro - it makes me happy Two years ago it was 1 Euro = 1.10 USD.

Here is the Thai opinion on the topic:

A HARD look at the euro currency, which will be introduced on Jan 1, shows that it will be as volatile against the baht as other major currencies and provide equal risks and opportunities for Thai businesses.

Speaking at a symposium on ''The Role of the Euro'', organised by the Bank of Thailand last week, Therapong Monthienvichienchai, regional head of foreign exchange and derivatives and private banking of Deutsche Bank AG, Singapore, said over the past five to six months the euro had been quoted at Bt41-Bt48.

He said this range reflected the volatility of the currency that is set to challenge the dominance of the US dollar and the Japanese yen.

''The euro is stable only when it is taken into account by the member European Union countries. But outside the EU membership, it carries high risk. So investors need to take extra caution,'' he said.

At present, there is no direct euro/baht quote on the trading screens in the banks' dealing rooms, neither is there any yen/baht quote. To arrive at the euro/baht rate, dealers will match the euro/US dollar rate with the dollar/baht rate before determining a crossing rate of the euro/baht. This computing technique is similarly applied with the yen/baht quote.

However, Therapong believed that the euro will have a good prospect of challenging the US dollar as the world's currency because it is likely to be a strong currency.

''We've got an impression that the euro is likely to be managed like the Deutschemark by the Bundesbank. This is because the European Central Bank, which will be independent from political pressure, will follow the model of the Bundesbank of Germany,'' he said.

It is difficult to paint a picture of the euro in the first six months of its existence because nobody knows about the portfolio adjustments of the European central banks and other international hedge funds.

But Tharit Panpiemraj, a senior official of the Bank of Thailand's banking department, believed that the euro will be a relatively stable currency in the first half of next year, making some gains against the dollar or the yen.

He added that the European Central Bank will try to create confidence in the euro for it to become an international currency and reserve currency of other central banks.

''Investors will have more confidence in the euro because the economy of Europe will achieve stability and low inflation,'' he said. ''Low inflation can guard the value of the currency. The European Central Bank is likely to bring inflation under control, targeting it at below 2 per cent.''

There will be room for the role of the euro to expand as the EU moves on to develop its capital market, whose size is about 75 per cent of the US market's, according to a Bank of Thailand report.

Moreover, most of the European capital markets are largely dominated by government bonds. The EU will attempt to use the euro as an international currency to do trade and investment with other European countries and the rest of the world, hence directly challenging the US dollar as the international currency.

US exports account for 13 per cent of the world's trade. The dollar is used as a medium for as much as 48 per cent of international transactions, the Bank of Thailand report shows. Central banks also keep as much as 57.1 per cent of their foreign exchange reserves in dollars.

The EU, together with Britain which is not among the launch countries of the euro, account for 31 per cent of world's exports and their currencies are used in 31 per cent of all international currency transactions.

But the popularity of their units as reserve currencies trails the dollar, accounting for a combined 17.8 per cent.

BY VATCHARA CHAROONSANTIKUL, THANONG KHANTHONG

[LivinLOS]

The dollar is going to get flushed down the crapper thansk to hoffic deficits and huge US personal debt.. Americans save a negative amount on average and when they stop refinancing thier home equity and when interest rates go up (inevitable with the deficits.. They have to appeal to overseas investment more) the sht really will hit the fan..

Already Japan appears to have stopped buying as many dollars to attempt to keep the yen cheaper and once China depegs then probably the rest of asia will follow..

The only question is how far would Thailand choose to devalue its own currency by buying dollars or american debt ??

[dddk]

I am not a specialist - but - last two years we have been exporting some goods from Thailand. Our Thai partners are fixed their prices in USD. Of course - for larger amounts we have discounts. It's OK for us because we sell these goods in Euro.

Lately I buy cheaper and cheaper USD   At the moment exchange rate in Thailand  is 1 $ = 41.64 B for 1 Euro = 52.54 B /26% margin/. In my country for 1 Euro I buy 1.30 USD /30% margin/! One item I buy for 1 USD and I sell it for 1 Euro - it makes me happy   Two years ago it was 1 Euro = 1.10 USD.

Here is the Thai opinion on the topic:

A HARD look at the euro currency, which will be introduced on Jan 1, shows that it will be as volatile against the baht as other major currencies and provide equal risks and opportunities for Thai businesses.

Speaking at a symposium on ''The Role of the Euro'', organised by the Bank of Thailand last week, Therapong Monthienvichienchai, regional head of foreign exchange and derivatives and private banking of Deutsche Bank AG, Singapore, said over the past five to six months the euro had been quoted at Bt41-Bt48.

He said this range reflected the volatility of the currency that is set to challenge the dominance of the US dollar and the Japanese yen.

''The euro is stable only when it is taken into account by the member European Union countries. But outside the EU membership, it carries high risk. So investors need to take extra caution,'' he said.

At present, there is no direct euro/baht quote on the trading screens in the banks' dealing rooms, neither is there any yen/baht quote. To arrive at the euro/baht rate, dealers will match the euro/US dollar rate with the dollar/baht rate before determining a crossing rate of the euro/baht. This computing technique is similarly applied with the yen/baht quote.

However, Therapong believed that the euro will have a good prospect of challenging the US dollar as the world's currency because it is likely to be a strong currency.

''We've got an impression that the euro is likely to be managed like the Deutschemark by the Bundesbank. This is because the European Central Bank, which will be independent from political pressure, will follow the model of the Bundesbank of Germany,'' he said.

It is difficult to paint a picture of the euro in the first six months of its existence because nobody knows about the portfolio adjustments of the European central banks and other international hedge funds.

But Tharit Panpiemraj, a senior official of the Bank of Thailand's banking department, believed that the euro will be a relatively stable currency in the first half of next year, making some gains against the dollar or the yen.

He added that the European Central Bank will try to create confidence in the euro for it to become an international currency and reserve currency of other central banks.

''Investors will have more confidence in the euro because the economy of Europe will achieve stability and low inflation,'' he said. ''Low inflation can guard the value of the currency. The European Central Bank is likely to bring inflation under control, targeting it at below 2 per cent.''

There will be room for the role of the euro to expand as the EU moves on to develop its capital market, whose size is about 75 per cent of the US market's, according to a Bank of Thailand report.

Moreover, most of the European capital markets are largely dominated by government bonds. The EU will attempt to use the euro as an international currency to do trade and investment with other European countries and the rest of the world, hence directly challenging the US dollar as the international currency.

US exports account for 13 per cent of the world's trade. The dollar is used as a medium for as much as 48 per cent of international transactions, the Bank of Thailand report shows. Central banks also keep as much as 57.1 per cent of their foreign exchange reserves in dollars.

The EU, together with Britain which is not among the launch countries of the euro, account for 31 per cent of world's exports and their currencies are used in 31 per cent of all international currency transactions.

But the popularity of their units as reserve currencies trails the dollar, accounting for a combined 17.8 per cent.

BY VATCHARA CHAROONSANTIKUL, THANONG KHANTHONG

<{POST_SNAPBACK}>

Hi everybody

Of course my message got an error.. i wanted to say euro is getting still stronger against dollar... but weaker against bahts those last 2 weeks

Thanks for answers anyway..

I think Thailand decided not to be linked as much to US dollar... That was the reason of my question!!!

Have a nice day

[PeaceBlondie]

For me personally, I pay all my regular expenses out of my Thai baht salary, but the extras come out of the US pensions. The exchange rate peaked at about 41.5 a month or so ago, and is now below 40 again. Fortunately, I withdrew a lot at 41. Now it hurts to only get 39 or 39.6 (with charges).

I agree that the horrific national debt and annual budget deficits of the USA, general anti-Americanism throughout the world, huge trade imbalances, and skyrocketing interest rates can only decrease the value of the US dollar. I could take heart when I see my Thai salary having more apparent value against the dollar, but my exchanges never go that way.

Anti-Americanism cannot be applied by rhetoric or by national warfare - only by terrorist violence and by economic monetary warfare. Surely we all prefer the latter.

I asked a guy who got a master's in economics from one of the best business schools in the USA about currency rates. He didn't have a clue. The only experts are like the famous British economist, Ricardo - they're amassing a personal fortune with their knowledge. The rest of us are clueless.