Falling Exchange Rates

[hill16]

Hi folks,

Right now the SCB exchange rate for those wishing to buy Baht notes is 45.16375 to the Euro and 49.7 to Stg. Is this likely to deteriorate even further this week/month? If one has foreign currency to exchange is it a good idea to do it now instead of risking an even further decline?

What about all of those who are reliant on income from abroad to maintain a certain standard of living here in CM? How has it affected you and what do you fear most for the future?

I think those dependent on the Pound have suffered the most but even the Euro has dropped significantly in the last month or so.

Anybody have any wisdom to share on what may be in store for us in the near future?

Regards,

Hill16

[jackr]

The arse will drop out of the baht eventually - can't be propped up forever - and the pound will bounce back eventually - can't stay down forever - but don't quote me on any of that.

[tom21]

The falling exchange rate not only increases the cost of living but those that rely on the pension for their retirement visa could drop below 65000thb a month and will not be granted a visa when due for renewal.

[realthaideal]

All my sympathies to the suffering Brits and those that may have their retirement visas threatened - that's serious. However, As a few of these threads have popped up I can only say 'welcome to my world.' Five yrs ago the ThB and USD was 42:1. It hit as low as 30:1 up until recently. For Amer expats the idea of a loss of 25% of our funds is nothing new and we've been dealing for about 3-4 years. It just means cutting back and scrambling for more cash from either side. It is a harsh reality that makes you think.... hmmm... what am I doing here ???!

[Greenside]

The falling exchange rate not only increases the cost of living but those that rely on the pension for their retirement visa could drop below 65000thb a month and will not be granted a visa when due for renewal.

And with that in mind, maybe worth thinking of bringing the 800k needed to secure your next extension over sooner rather than later (if you have it available) since the interest rate in the UK means it's not earning anything worthwhile anyway and then at least you wont have to fret about the possibility of being refused due to the exchange rate.

[PeaceBlondie]

World wide, most people are changing their lifestyle, dramatically. Car sales, way down. Fancy restaurants, way down. I am building a house so I pay no more for housing in another six years. Okay, I renewed my 300 baht/year swim membership, but that was no big deal. Do a budget and see what you can do without.

[hill16]

Just noticed a thread on the 'Thai visas, residency and work permits' forum entitled "Tourism Ministry Proposes Waiving Visa Fees For 6 Months, other measures involve 50% cut THAI fares and free National Parks".

This is connected to our current discussion in a way. All of these measures are fine but if the Thai government want to revive the tourist industry and improve the economy surely they cannot continue to sustain the THB at such high rates against other major currencies including the two I mentioned originally.

[Bill97]

It will take a little more time for the big traders to get lined up for the drop in the value of the Baht, then it will happen. The powers that be here are kind to provide that time for their buddies to get positioned to eliminate losses and maximize gains.

[richard10365]

I like the direction the dollar seems to be heading this year. I hope it continues in it's upward trend.

[trigger]

When I went to live in Thailand 20 years ago the rate for the pound was 40 (25 for $US). This was the norm (+or - a few baht) until, for sterling, the UK crash from the E.R.M. and floating of the pound took it to 34/35 in 1993/94. The only reason for the generous rates of recent years was the Asian economic crash. The pound was already falling before the present credit crunch, which is worse in UK than in many other countries.

In a perfect world people would stash away money when times are good but this rarely happens so many in UK lose their homes when times get rough.

[papajohn]

I like the direction the dollar seems to be heading this year. I hope it continues in it's upward trend.

I like you have been waiting for a return to a better return . The baht was at 39 to the buck when I arrived. Went down to 30 alarming !! Been looking around at other

places on my list and PI appears to be a better place to retire . The peso was on par

with the baht 39-40 to the buck. Now the peso is 49 while the baht is holding in the lower 30's. Big lose in real money in comparison. I love Thailand but when it comes down to cost of living and the demands of Immigration each year for long stay the

PI looks very appealing. Sawatdee Kup

[sassienie]

The falling exchange rates has affect my family and I greatly.

I had to dress my wife and daughter up as Akker tribes women and send them begging in the town, cook our pet dogs for food and everyday I scavenge for food in neighbours rubbish bins for any leftovers.

Times are bad, and if anyone wishes to donate money, gems, gold for us to buy food, and maybe a bit extra for my beer and fags, please let me know.

[Ulysses G.]

Maybe you could send the Akha wenches over?

[Gravelrash]

This blog has a few articles on exchange rates and may be of interest Thailand Crisis

If correct he is suggesting that they won't be able to continue support the baht at this rate, and that it is unofficially linked to the US$.

[Mapguy]

Just don't play it too close, folks. It is going to be a very, very bumpy ride over the next few years.

I do hear, however, that the Inuits have not been terribly affected by rapid changes in currency exchange rates. Might check that out. But take a sweater.

Wait a minute, being Arctic in nature, perhaps they put their savings from whaling, Polar bear-goring and seal-bashing in the banks of Iceland! Oops!!!!!

Maybe some place warmer? The Eastern Congo? Or some place more temperate, like Zimbabwe?.

St. Helena? Windy, I think? A rock other than Gibraltar?

Deal with it!