Bot Keeps On Intervening To Support Thb

[Bengt]

I think many foreign expats wonder whats going on whit the economy in Thailand.

I found some intresting information in a link,

http://thaicrisis.wordpress.com/category/e...rrency-economy/

[unomi]

cheers for the link

[PeaceBlondie]

I am still confused. Now in October, is the BOT trying to keep the baht more valuable against the dollar, or vice versa?

[Gumballl]

I think many foreign expats wonder whats going on whit the economy in Thailand.

I found some intresting information in a link,

http://thaicrisis.wordpress.com/category/e...rrency-economy/

Yes interesting biased information. What you forgot to do though, is examine the date of the lead article. It is dated June 2008, with others below it even older.

[tijnebijn]

The baht starts to get over valued , don't exactly understand why they keep

intervening , its not helping tourism and exports at all , and doubt inflation .

The BOT wants to keep control , but at the end when there is no holding ,

the baht will tumble fast and they know it , just waiting for a couple of rate cuts ,

and we can be pretty sure intervening can't stop the baht falling where it should be .

The dollar should be at 37 already when no intervening as such ......

[Marksamui]

The strong Bhat hurts exports and tourism. However it does help imports.

I am guessing this but I would say that the massive oil price was hurting the Thai's a lot....I know in general prices were going up because of the oil. So as oil is priced in USD if the BOT strengthen the THB against the USD then it would help the import of oil, which would probably help with the inflation.

Trouble is Oil is falling now at an alarming rate and the THB is looking a little too strong. So they have improved on the oil imports which I guess has an immediate impact (you should see the price at the pumps coming down) but damaged the exports which they probably do not know of the full impact yet.

In short they need to get the currency back into a happy band where both imports and exports are reasonable. With the Oil low they should start acting soon otherwise they must be in risk of long-term problems with the reduction in exports they must be having....