ozzieman05 Posted February 18, 2009 Share Posted February 18, 2009 For weeks now there has been alot of talk that the Thai Baht is way to high against foreign currancyies This week I see many companies laying off Thai workers (GM Toyota etc etc) as they are selling less cars to the world Also tourists have less money in their pockets so less money to spend As Issan survives on the tourist dollar from family member who work in the tourist areas, they also are suffering from the Thai Bhat being to high So why ???? Why is th Baht so high ?? When to lower it like most western countries have done, would make Thai goods so much cheaper to the outside world Dos any one know the reason ????????????????????????? Link to comment Share on other sites More sharing options...
LennyW Posted February 18, 2009 Share Posted February 18, 2009 You must understand that it is not the Baht that is high / strong, it is the foreign currencies that are weak! "When to lower it like most western countries have done, would make Thai goods so much cheaper to the outside world" Surely you are not suggesting that the government manipulate the value of the baht?? Link to comment Share on other sites More sharing options...
thaiwanderer Posted February 18, 2009 Share Posted February 18, 2009 ''A weak currency shows that a particular country has a confidence problem'' - BOT Governor Link to comment Share on other sites More sharing options...
aussiejosh Posted February 18, 2009 Share Posted February 18, 2009 (edited) There are things that countries can do to effect the value of their currency, not just manipulation... Thailand is remaining unusually strong, it has been suggested this is because of currency manipulation... Wish I could find sources, haven't had much time for reading recently, with the financial crisis and all working 1 job whilst trying to start a business is a bitch... Edited February 18, 2009 by aussiejosh Link to comment Share on other sites More sharing options...
Maizefarmer Posted February 18, 2009 Share Posted February 18, 2009 You must understand that it is not the Baht that is high / strong, it is the foreign currencies that are weak!"When to lower it like most western countries have done, would make Thai goods so much cheaper to the outside world" Surely you are not suggesting that the government manipulate the value of the baht?? ..... actually its a bit of both; the Thai authorties have deliberately kept the Baht strong Link to comment Share on other sites More sharing options...
jdinasia Posted February 18, 2009 Share Posted February 18, 2009 You must understand that it is not the Baht that is high / strong, it is the foreign currencies that are weak!"When to lower it like most western countries have done, would make Thai goods so much cheaper to the outside world" Surely you are not suggesting that the government manipulate the value of the baht?? ..... actually its a bit of both; the Thai authorties have deliberately kept the Baht strong and how are they doing this? is there actual evidence of them depleting Fx reserves to keep the Baht high? Link to comment Share on other sites More sharing options...
BigSnake Posted February 18, 2009 Share Posted February 18, 2009 Bank of Thailand(BOT) attempt to save FACE! Link to comment Share on other sites More sharing options...
Maigo6 Posted February 18, 2009 Share Posted February 18, 2009 Maybe the Thais should have been as stupid as the idiots in the west and bankrupted the country. And I'm sure the OP is really concerned about the welfare of the Thai people, nothing to do with his own currency being total crap. Why can't the west be more like Thaialnd, they may also have a strong currency....lol Link to comment Share on other sites More sharing options...
Ping Posted February 18, 2009 Share Posted February 18, 2009 You must understand that it is not the Baht that is high / strong, it is the foreign currencies that are weak!"When to lower it like most western countries have done, would make Thai goods so much cheaper to the outside world" Surely you are not suggesting that the government manipulate the value of the baht?? ..... actually its a bit of both; the Thai authorties have deliberately kept the Baht strong That is simply not correct. They are so concerned about it that they are considering methods that would lead to devaluation. It's been well reported. Link to comment Share on other sites More sharing options...
neverdie Posted February 18, 2009 Share Posted February 18, 2009 If we keep posting about the strength of the thai baht, its bound to collapse & that will make us all rich rich rich ......theres been so many topic created on this subject....its crrrrrrraaaaaaaazy! Get over it ....im hoping the thai baht strenthens so you need 100 briish quids to buy 50 satang, 3000 USD to get 25 satang and all the other currencies similar rates....that'll seperate the boys from the men & get the wingers out of los On the down side its not gonna help the thais either....but you get that Link to comment Share on other sites More sharing options...
beechguy Posted February 18, 2009 Share Posted February 18, 2009 (edited) Agreed, couldn't you just have added to the already too long list of whining and moaning topics in the jobs, and financial section. How many of these kind of posts do you guys need? Edited February 18, 2009 by beechguy Link to comment Share on other sites More sharing options...
Gravelrash Posted February 18, 2009 Share Posted February 18, 2009 (edited) Maybe the Thais should have been as stupid as the idiots in the west and bankrupted the country.And I'm sure the OP is really concerned about the welfare of the Thai people, nothing to do with his own currency being total crap. Why can't the west be more like Thaialnd, they may also have a strong currency....lol Not sure where you are from, Iceland? but last I heard my country wasn't bankrupt, in fact it still isn't technically in recession (yet). So "potentially" cheaper and more competitive exports and tourists spending more doesn't help Thais? Expats spending 30% more doesn't contribute to the economy? So the high baht is benefiting Thailand. Oh, how? Cheaper overseas holidays for the Hi-So? Cheaper imports such as Mercedes, wine, foreign food, machinery (what companies are increasing capital investment?), watches, perfume? Haven't noticed any price reductions. You seem to be suggesting that Thais are better economic managers that western governments, now this is an interesting synopsis. Please expand. I earn income in baht by the way so have no vested interest in exchange rates. Edited February 18, 2009 by Gravelrash Link to comment Share on other sites More sharing options...
BygonKeaw Posted February 18, 2009 Share Posted February 18, 2009 Maybe the Thais should have been as stupid as the idiots in the west and bankrupted the country.And I'm sure the OP is really concerned about the welfare of the Thai people, nothing to do with his own currency being total crap. Why can't the west be more like Thaialnd, they may also have a strong currency....lol Your right maigo6 BUT me myself would love it if the baht weaken back to 70 against the pound. Not gonna happen but im hoping. Got a family to look after. Ps its spelt thailand not thaialand!!! Link to comment Share on other sites More sharing options...
Maigo6 Posted February 18, 2009 Share Posted February 18, 2009 Maybe the Thais should have been as stupid as the idiots in the west and bankrupted the country.And I'm sure the OP is really concerned about the welfare of the Thai people, nothing to do with his own currency being total crap. Why can't the west be more like Thaialnd, they may also have a strong currency....lol Your right maigo6 BUT me myself would love it if the baht weaken back to 70 against the pound. Not gonna happen but im hoping. Got a family to look after. Ps its spelt thailand not thaialand!!! LOL.... I'd love to see the Baht go to 100 for a Dollar the day I get paid, then go to 25 the next day, or better still immediately after my transaction, I could live with that. PS, it's Thailand, not thailand !!! Link to comment Share on other sites More sharing options...
BygonKeaw Posted February 18, 2009 Share Posted February 18, 2009 (edited) Maybe the Thais should have been as stupid as the idiots in the west and bankrupted the country.And I'm sure the OP is really concerned about the welfare of the Thai people, nothing to do with his own currency being total crap. Why can't the west be more like Thaialnd, they may also have a strong currency....lol Your right maigo6 BUT me myself would love it if the baht weaken back to 70 against the pound. Not gonna happen but im hoping. Got a family to look after. Ps its spelt thailand not thaialand!!! LOL.... I'd love to see the Baht go to 100 for a Dollar the day I get paid, then go to 25 the next day, or better still immediately after my transaction, I could live with that. PS, it's Thailand, not thailand !!! Ok i could pick holes in your grammar but seen as mine is bad there is no point. Edited February 18, 2009 by BygonKeaw Link to comment Share on other sites More sharing options...
Pib Posted February 18, 2009 Share Posted February 18, 2009 My guess (i.e., drunken dart throw) is the Baht will weaken to around 37 Baht to 1 U.S. dollar over the next few months. The Bank of Thailand will reluctantly and slowly allow the Baht to weaken as this is about the only way they can show the general Thai public they are working to improve the Thai economy by lowering the cost of Thai exports through a weaker Baht. Link to comment Share on other sites More sharing options...
ozzieman05 Posted February 18, 2009 Author Share Posted February 18, 2009 So far no one has been able to answer my question Some feel the Bhat should be high so the Rich Thai can be better off buying expensive cars from over seas etc etc The Australia dollars was nearly equal to the US$, but when te US$ crashed it would have killed the Australia economy if the Aus dollar had stayed the same so, it came down so our exports would still cost the same or better than before the crash. Australia is not a bankrupt country and we still have a comfortable life style But my wife parents in Issan are being effected a they own the local village shop No one in the village has money coming in from their kids in Pattaya, Bkk, Phuket, why Farang have less money to send so less money being made When she sends money it converts to less money HOW can you say the high Bhat is not affecting Thais ?????????????????!!!!!!!!!!!!!!!! While the PM was in Swiiss he was told he needs to get the Bhat down to help exports He agreed Have not heard anothing thing since then Link to comment Share on other sites More sharing options...
MiG16 Posted February 18, 2009 Share Posted February 18, 2009 moving to finance and economy section Link to comment Share on other sites More sharing options...
Ricardo Posted February 19, 2009 Share Posted February 19, 2009 My guess (i.e., drunken dart throw) is the Baht will weaken to around 37 Baht to 1 U.S. dollar over the next few months. The Bank of Thailand will reluctantly and slowly allow the Baht to weaken as this is about the only way they can show the general Thai public they are working to improve the Thai economy by lowering the cost of Thai exports through a weaker Baht. There were reported to have been 500,000 jobs lost, in the last 3 months of 2008, with factories & companies shutting-down left-right-and-centre. The tourist-industry saw a fall in arrivals from August onwards, not to mention the effects, of the 1-week airport-closure on confidence. Farmers have seen export-prices fall, and no weakening of the Baht, to cushion this effect. So right now it's all about showing the Thai public, and their Masters-degree-in-economics new boss, that the BoT is doing the right thing, and keeping their jobs. But since this involves a reversal of policy, with risk of loss-of-face, this will only happen slowly. And the BoT don't care about the further job-losses & damage to the economy that may result from their slow reaction. They can always blame the farangs, for the global economic-crisis, rather than their own slow response to it. Link to comment Share on other sites More sharing options...
thaihome Posted February 19, 2009 Share Posted February 19, 2009 I agree that the BOT needs to let the baht weaken, but they need to do it very slowly (as they are doing). Keeping in mind that Thailand imports about a million barrels of oil a day, what do you think would be the impact if fuel cost went up 15-20% due to the weakening of the baht and subsequent increase in the cost of dollar based oil? If the baht would suddenly go to 45 as some have suggested the impact would be catastrophic to economy and any benefit from lower priced exports would be offset by the internally higher priced fuel. During the run up in oil prices last year, the government tried to subsidize the price of diesel and it almost bankrupted them. Doubt they can afford to do that again. To suggest this is about “face” for the BOT is ludicrous and shows a true lack of understanding of Thailand and its economy. TH Link to comment Share on other sites More sharing options...
wamberal Posted February 19, 2009 Share Posted February 19, 2009 It used to be conventional wisdom that the baht was kept artificially high because most military procurement was denominated in US dollars - thus the stronger the baht, the less expensive the toys that the military buys for its fun and games. Link to comment Share on other sites More sharing options...
thaihome Posted February 19, 2009 Share Posted February 19, 2009 Conventional to whom? Are you perhaps confusing “conventional wisdom” with Thailand expat urban myths? You people continue to crack me up. TH Link to comment Share on other sites More sharing options...
Soutpeel Posted February 19, 2009 Share Posted February 19, 2009 TH, In agreement with you.....its not the THB that has strengthened against other currencies, its the other currencies which have weakened against the THB.... Think a lot of the postings here are just sour grapes from farangs who now have less money in Thailand to spend because their own currencies have gone down the toilet and have got to find someone to blame.. Link to comment Share on other sites More sharing options...
lannarebirth Posted February 19, 2009 Share Posted February 19, 2009 From reading this thread, I'm not sure anyone has checked the THB lately. It's about 10 satang off its November lows against the $USD. The $USD Index BTW made a cyclical closing high yesterday, though not a cyclical intraday high. Link to comment Share on other sites More sharing options...
Chivas Posted February 19, 2009 Share Posted February 19, 2009 Yes indeed 35.52 as I post. Chivas Link to comment Share on other sites More sharing options...
thaihome Posted February 19, 2009 Share Posted February 19, 2009 TH,In agreement with you.....its not the THB that has strengthened against other currencies, its the other currencies which have weakened against the THB.... Think a lot of the postings here are just sour grapes from farangs who now have less money in Thailand to spend because their own currencies have gone down the toilet and have got to find someone to blame.. Face is always a good one. THB/USD has been trading in very narrow range with an overall weakening trend for some time now, but why let facts get in the way. TH Link to comment Share on other sites More sharing options...
Naam Posted February 19, 2009 Share Posted February 19, 2009 TH,In agreement with you.....its not the THB that has strengthened against other currencies, its the other currencies which have weakened against the THB.... Think a lot of the postings here are just sour grapes from farangs who now have less money in Thailand to spend because their own currencies have gone down the toilet and have got to find someone to blame.. Face is always a good one. THB/USD has been trading in very narrow range with an overall weakening trend for some time now, but why let facts get in the way. TH Link to comment Share on other sites More sharing options...
ozzieman05 Posted February 19, 2009 Author Share Posted February 19, 2009 TH,In agreement with you.....its not the THB that has strengthened against other currencies, its the other currencies which have weakened against the THB.... Think a lot of the postings here are just sour grapes from farangs who now have less money in Thailand to spend because their own currencies have gone down the toilet and have got to find someone to blame.. May it be true or not It does not change the fact The average person in Thailand (The worker) is feeling an absence of tourists spending money as the Bhat is to high, when you can not put food on the table, or pay for a doctor, does it matter whose fault it is Link to comment Share on other sites More sharing options...
jesimps Posted February 19, 2009 Share Posted February 19, 2009 They say that Thais aren't affected by the strong baht. I know one who's suffering and who goes ballistic every time someone even mentions the Bot. My girlfriend! The 150 pounds pocket money I give her every month has gone down from 10500 last year to 7500 baht now. Link to comment Share on other sites More sharing options...
mommysboy Posted February 19, 2009 Share Posted February 19, 2009 ''A weak currency shows that a particular country has a confidence problem'' - BOT Governor Ahh FACE !!! Good to know that there is sound economics at play. Link to comment Share on other sites More sharing options...
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