Thai Baht, Why Is It Still So Strong?

[Gary74]

Can someone enlightened me why Thai Baht is still very strong currency with all the bad news about Thailand?

[sukeroku]

The baht is one of the weakest currencies in the world according to the Big Mac index. Check out the Economist! It's actually quite a cheap place to live. Where did you get the idea that life here need be so costly?

[Gary74]

"Writer: BangkokPost.com

Published: 6/07/2009 at 12:14 PM The Thai baht was the second most appreciated currency in Asia in the first half of 2009, the Kasikorn Research Centre reported on Monday.

The leading think-tank said the baht's value had strengthened against the US dollar by 2.3 per cent, while Indonesia's rupiah had appreciated by 6.4 per cent.

The recovering economy in China and other Asian countries, including Thailand, may cause the baht to follow other regional currencies and strengthen further.

A likely rebound in inflation is also possible at the end of this year, the KRC said.

The Thai currency could appreciate to 33.75 baht per US dollar, and may hit 33.00 baht in the fourth quarter, according to the forecast."

Thailand is richer then most countries in the world and baht is strong currency and I expected to depreciate to 40 baht to 1 dollar under the current financial condition but it seems just the opposite. And it's getting stronger against world's strongest currencies. What's with that?

[sukeroku]

I'd love the baht to depreciate to 40 baht/dollar. But let's be realistic, the dollar does have it's problems that are far more severe than any economic perturbations in Thailand.

[thaihome]

...Thailand is richer then most countries in the world and baht is strong currency and I expected to depreciate to 40 baht to 1 dollar under the current financial condition but it seems just the opposite. And it's getting stronger against world's strongest currencies. What's with that?

And you thought it would go to 40 based on??? Wishful thinking perhaps? From the experts here on TV?

Actually since Feb 08, it has weakened over 10% against the dollar. The most recent strengthening is probably due to a generally weakening of the dollar.

TH

[caf]

"Writer: BangkokPost.com

Published: 6/07/2009 at 12:14 PM The Thai baht was the second most appreciated currency in Asia in the first half of 2009, the Kasikorn Research Centre reported on Monday.

The leading think-tank said the baht's value had strengthened against the US dollar by 2.3 per cent, while Indonesia's rupiah had appreciated by 6.4 per cent.

The recovering economy in China and other Asian countries, including Thailand, may cause the baht to follow other regional currencies and strengthen further.

A likely rebound in inflation is also possible at the end of this year, the KRC said.

The Thai currency could appreciate to 33.75 baht per US dollar, and may hit 33.00 baht in the fourth quarter, according to the forecast."

Thailand is richer then most countries in the world and baht is strong currency and I expected to depreciate to 40 baht to 1 dollar under the current financial condition but it seems just the opposite. And it's getting stronger against world's strongest currencies. What's with that?

I was going to give an explanation but i think i would be wasting my time.

Thailand is richer then most countries What planet are you living on?

it's getting stronger against world's strongest currencies. Don't read what others say. Check the actual exchange rates over a period of time. it is not getting stronger.

I have made some not insignificant gains over the last few months selling sterling forward and buying baht.

and the trend looks like that will continue over the next 2 years.

[sukeroku]

Among the 220 countries in the world, I'm sure Thailand is richer than most, well more than half anyway.

[PST]

http://en.wikipedia.org/wiki/List_of_count...PPP)_per_capita

PST.

[sukeroku]

http://en.wikipedia.org/wiki/List_of_count...PPP)_per_capita

PST.

Clearly, Thailand the GDP of Thailand is well into the top 50% of the world's countries. No surprise here.

[neverdie]

Theres been heaps of other threads on this exact topic, nothing has really changed that much, other currencies are getting weaker & the Thai baht could strenghten some yet. Turn on your Television theres a Global Reset happening, China and a few others are set to take Financial hold of the world and turn the USA and various other Countries into their biatch .....its all good, theres nothing you can do about it

[cyb]

...Thailand is richer then most countries in the world and baht is strong currency and I expected to depreciate to 40 baht to 1 dollar under the current financial condition but it seems just the opposite. And it's getting stronger against world's strongest currencies. What's with that?

And you thought it would go to 40 based on??? Wishful thinking perhaps? From the experts here on TV?

Actually since Feb 08, it has weakened over 10% against the dollar. The most recent strengthening is probably due to a generally weakening of the dollar.

TH

The baht in real terms has never being strong, It only looks that way due to other currencies being so weak. It has started to lose ground against GBP and the dollar with the odd blip in between.

As soon as the western economys start to recover then you will see a bigger slide in the bahts value

[SMEEERE]

The baht is one of the weakest currencies in the world according to the Big Mac index. Check out the Economist! It's actually quite a cheap place to live. Where did you get the idea that life here need be so costly?

Forgive me if im wrong but thats not what i think he means, what with exports and tourism at an all time low one would think the thais may want to try to improve the rate hence spending, but again its a mystery as they obviously know something we dont,.

[sukeroku]

Tourism is much closer to an all-time high than an all-time low. You won't find many years in the last 50 years with more tourists or more tourism income, maybe 2 or 3 years out of 50 were better than the present.

[SMEEERE]

Tourism is much closer to an all-time high than an all-time low. You won't find many years in the last 50 years with more tourists or more tourism income, maybe 2 or 3 years out of 50 were better than the present.

So all the figures about being down are incorrect ? and export sales ? is that false also ? im only asking, not making a statement, but there must be something in all these lay offs from toyota/chevrolet and the likes,.

[caf]

...Thailand is richer then most countries in the world and baht is strong currency and I expected to depreciate to 40 baht to 1 dollar under the current financial condition but it seems just the opposite. And it's getting stronger against world's strongest currencies. What's with that?

And you thought it would go to 40 based on??? Wishful thinking perhaps? From the experts here on TV?

Actually since Feb 08, it has weakened over 10% against the dollar. The most recent strengthening is probably due to a generally weakening of the dollar.

TH

The baht in real terms has never being strong, It only looks that way due to other currencies being so weak. It has started to lose ground against GBP and the dollar with the odd blip in between.

As soon as the western economys start to recover then you will see a bigger slide in the bahts value

Good summary. And spot on.

[thaihome]

Tourism is much closer to an all-time high than an all-time low. You won't find many years in the last 50 years with more tourists or more tourism income, maybe 2 or 3 years out of 50 were better than the present.

So all the figures about being down are incorrect ? and export sales ? is that false also ? im only asking, not making a statement, but there must be something in all these lay offs from toyota/chevrolet and the likes,.

All those drastic figures are year on year percentage drops. They are comparisons to 2007 and 2008 which were the highest recorded for both tourism and exports. Levels for both are now the same as in 2006 or so.

This is what happens when people only read headlines and do not bother to try and do any analysis (which the newspapers should do).

TH

[trogers]

The baht is one of the weakest currencies in the world according to the Big Mac index. Check out the Economist! It's actually quite a cheap place to live. Where did you get the idea that life here need be so costly?

All things are relative. Cheap for a guy from a country where night guards earn USD300 a week, and expensive for one from a country where the night guards earn only USD30 a week.

[Gary74]

Yes Thailand is richer then most countries in the world. GDP is over over 1/2 trillion US$ per year. And many farangs don't understand this.

Baht is strong against world strongest currencies and if you compare over last 10 years, it still hold against it with ups and downs.

I thought it would lean closer to 40 baht to 1 US$ by now or in the near future. Nothing wrong with hoping.

[verydumbubba]

Remember its only a ratio - a stronger currency results in cheaper imports of critical items such as oil, machinery.

The carry-trades also favor the emerging market currencies as the traders speculate and drive the currency - artificially

Its more difficult to manipulate the Greenback than the Baht. Same/Same stockmarkets. Its a shell game really.

The country is no richer for it. LOS is blessed in that it has a surfeit of very good food.

Bubba

[Pamela12]

The baht is deflating against the USD in the past year or so. In my opinion it is too strong and should be devalued so that Thai good are more attractive to foreign buyers. The Thai economy is suffering because other SE Asian countries, and China/Japan/Korea haven't been buying the rice at the same level as in the past because the baht is WAY too strong.

[cyb]

The baht is deflating against the USD in the past year or so. In my opinion it is too strong and should be devalued so that Thai good are more attractive to foreign buyers. The Thai economy is suffering because other SE Asian countries, and China/Japan/Korea haven't been buying the rice at the same level as in the past because the baht is WAY too strong.

The baht is not strong, It is other currencies that are suffering more. Why is it that when some one gets less Baht for their dollar/Gbp, It's automatically the baht is strong and not their currency that is weak?

To devalue the baht would increase inflation and effectively prices would raise. Therefore making it more expensive to live in Thailand and that goes for farang as well as Thai.

[Livinginexile]

last year I was paid in $US. It hurt a lot when the greenback took a tumble.

As from next week I will be paid in Thai Baht. Now I love the fact the baht is stronger against the $US

It all depends on what side of the fence you are standing.

[zzaa09]

Among the 220 countries in the world, I'm sure Thailand is richer than most, well more than half anyway.

A very few are rich. Some might refer this as Plutocracy.

[robbo1]

Aussie dollar must be going ok then back to about 28 baht to $1.00 aussie better than 21 or 22 baht back in october and november last year