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UK Pound Collapse 47.99 against the Baht


cavelight

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Well actually my point was that Conservative Lib Dem coalition would be seen to be unworkable and I think that result would precipitate a run on the pound. The people might think, some apparently do think, that a hung parliament will be a good thing but I don't see the markets sharing that view. I think a Labour Lib Dem coalition is slightly more workable but the cracks would appear within months and another election will be in the offing. I think whichever way the cookie crumbles sterling is likely to be hit, barring the more unlikely event of an working majority for either Labour or Tory.

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I think that any result that sees Vince Cable as Chancellor will be Pound positive in the short term or until a new election is called, a result that shows four more years of the same old business as usual must be bad for the UK and the Pound - in-between there are a couple of options, one being the devil we haven't seen for thirteen years and I guess that also must be Pound positive I reckon. Agreed however that sooner or later the Pound is almost certainly going to get hit.

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I think that any result that sees Vince Cable as Chancellor will be Pound positive in the short term or until a new election is called, a result that shows four more years of the same old business as usual must be bad for the UK and the Pound - in-between there are a couple of options, one being the devil we haven't seen for thirteen years and I guess that also must be Pound positive I reckon. Agreed however that sooner or later the Pound is almost certainly going to get hit.

Despite Mr Cable seeming very credible. I can't see him becoming Chancellor being good for the Pound.. Mainly because he is another looney in favour of adopting the Euro and linking our already sick economy to the sick men of Europe.. Why in times of need would you want to shoulder your impoverished relatives burden too ?

To think of it why are the Brit tax payers still having their tax monies sent/wasted overseas as aid for corrrupt African Governments to fritter away... Surely during a recession the first thing to do would be to spend the money on the UK and not on the likes of Mugabe and his ilk.

Though I don't agree wholeheartedly with UKIP at least they admitted 'the UK is skint' and they wanted to cut back on wastage and un-necesssary spending. Oh and get out of Brussel's grasp...

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I think that any result that sees Vince Cable as Chancellor will be Pound positive in the short term or until a new election is called, a result that shows four more years of the same old business as usual must be bad for the UK and the Pound - in-between there are a couple of options, one being the devil we haven't seen for thirteen years and I guess that also must be Pound positive I reckon. Agreed however that sooner or later the Pound is almost certainly going to get hit.

Despite Mr Cable seeming very credible. I can't see him becoming Chancellor being good for the Pound.. Mainly because he is another looney in favour of adopting the Euro and linking our already sick economy to the sick men of Europe.. Why in times of need would you want to shoulder your impoverished relatives burden too ?

To think of it why are the Brit tax payers still having their tax monies sent/wasted overseas as aid for corrrupt African Governments to fritter away... Surely during a recession the first thing to do would be to spend the money on the UK and not on the likes of Mugabe and his ilk.

Though I don't agree wholeheartedly with UKIP at least they admitted 'the UK is skint' and they wanted to cut back on wastage and un-necesssary spending. Oh and get out of Brussel's grasp...

Sterling depreciation may not be the only threat to living standards for Brits in Thailand - below is an op-ed piece that I recently wrote for The Nation. I'm giving another talk on this next Tuesday (20th) - PM if anyone wants an invitation

cheers,

Paul

Fending off recession is a costly business and the cost of recent initiatives in most Western economies will likely be born by taxpayers, not the bailed out banks and irresponsible risk takers who caused the crises in the first place.

As British debt reaches record levels the government will be forced to implement increasingly radical measures to replenish state coffers that have been decimated by fiscal stimulus packages and bank bailouts.

Those measures may have serious implications for British expatriates, including those living in Thailand, as a recent court case has set an unnerving precedent by ruling that just because you haven’t lived in Blighty for years doesn’t mean you are not liable to pay tax there.

UK debt currently totals £848 billion (about 37 trillion baht) or 59.9% of gross domestic product, compared with 94.27% in the US and a whopping 125% in Greece. Economists say that debt starts to become unsustainable once it tops 60% of GDP, which means the UK is teetering on the brink of the abyss.

In order to redress this fiscal imbalance – and believe me the UK government is in a very precarious situation – there is likely to be a hike in taxes and more rigorous enforcement of the revenue code.

Recent legal action suggests that such action will include extending the collection net overseas.

A few weeks ago, a British court upheld the Inland Revenue’s interpretation that Robert Gaines-Cooper should be liable for tax.

The controversial point is that Mr Gaines-Cooper, now 73, moved to the Seychelles about three decades ago. Since then he has followed the Inland Revenue’s published guidance – that one is considered non-resident for tax purposes if you spend less than 91 days a year in the UK – to the letter.

But that regulation was no longer deemed appropriate in the septuagenarian’s case by the cash-strapped department and the court upheld the authority’s new perspective that Mr Gaines-Cooper should be lumbered with a multimillion-pound tax bill because the UK remained "the centre of gravity of his life and interests".

Since the case began, Her Majesty’s Revenue & Customs has replaced the IR20 – which offered guidance on residence and domicile rules – with a new document, the HMRC6. The 90-day rule has now been abolished and replaced with a flabby and vague statement that “just because you leave the UK to live or work abroad does not necessarily prove that you are no longer resident here if, for example, you keep connections in the UK such as property, economic interests, available accommodation, and social activities...”

This new definition, or lack of definition to be more precise, benefits the taxman considerably, as on paper it has the potential to net anyone with even the loosest connections to their homeland. But how can responsible expats who thought not living in the UK actually made them non-resident now know if they are now liable for more tax? How can they plan their finances accordingly? What exactly constitutes “connections”? Could membership of a golf club, the fact that you visit your children in the UK a few times a year, charitable work, or your annual pilgrimage to Glastonbury Festival, the Proms or the FA Cup now cost you dearly?

Seeking advice either from the department or a responsible local independent financial advisor is a good place to start.

While the Gaines-Cooper ruling creates a potentially costly conundrum, not all changes in the regulatory landscape are bad. The UK tax authority is also introducing something of an amnesty for people with “grey” offshore assets.

HMRC is offering a “once in a lifetime” opportunity restricting liabilities and penalties for investors with assets held in any offshore jurisdiction. The deal struck with Lichtenstein will cap penalties at 10%, down from 100%, on undeclared tax liabilities as well as halving the taxable period to 10 years.

People who take up the offer will also be exempt from prosecution and can opt to pay a 40% composite rate. Revenue collectors have also promised that anyone declaring their assets under the scheme will not be subject to undue scrutiny in the future.

While this latter policy will affect far fewer expats than the Gaines-Cooper ruling it does show some balance from the HMRC.

Nevertheless, for most British citizens living in Thailand navigating the UK tax code has become something of a minefield.

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I think that any result that sees Vince Cable as Chancellor will be Pound positive in the short term or until a new election is called, a result that shows four more years of the same old business as usual must be bad for the UK and the Pound - in-between there are a couple of options, one being the devil we haven't seen for thirteen years and I guess that also must be Pound positive I reckon. Agreed however that sooner or later the Pound is almost certainly going to get hit.

Well if you want to take punt....

- William Hill are offering 7/1 for Vince Cable to deliver the first budget of the next government (Darling 8/1, Osborne 2/5)

- Paddy Power are offering 4/1 for Chancellor of the Exchequer being the most senior job held by a Lib Dem in a hung parliament. While Vince Cable as Chancellor outright is at 8/1 (Darling 7/2, Osborne 4/11)

- Betfair on the other hand have Vince Cable at 9/1 with Osborne at 3/1… but no sign of Darling on the betting sheet at the moment.

It seems that in the bookies’ eyes Vince Cable has leapfrogged Darling as Britain’s next Chancellor. Just Osborne to go!

Here.

A mugs bet in my opinion. Can you imagine Nick Clegg saying to Cameron or Brown "....the price for our co-operation is that you install Vince as Chancellor so he can eclipse me even more and of course so he can take credit for any economic recovery ?" Can you imagine either of them accepting ? Well if you can then place your bets.... :)

Mind you of them all this is probably the shrewder bet " Paddy Power are offering 4/1 for Chancellor of the Exchequer being the most senior job held by a Lib Dem in a hung parliament....still lousy odds though IMHO.

Edited by roamer
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I think that any result that sees Vince Cable as Chancellor will be Pound positive in the short term or until a new election is called, a result that shows four more years of the same old business as usual must be bad for the UK and the Pound - in-between there are a couple of options, one being the devil we haven't seen for thirteen years and I guess that also must be Pound positive I reckon. Agreed however that sooner or later the Pound is almost certainly going to get hit.

Well if you want to take punt....

- William Hill are offering 7/1 for Vince Cable to deliver the first budget of the next government (Darling 8/1, Osborne 2/5)

- Paddy Power are offering 4/1 for Chancellor of the Exchequer being the most senior job held by a Lib Dem in a hung parliament. While Vince Cable as Chancellor outright is at 8/1 (Darling 7/2, Osborne 4/11)

- Betfair on the other hand have Vince Cable at 9/1 with Osborne at 3/1… but no sign of Darling on the betting sheet at the moment.

It seems that in the bookies’ eyes Vince Cable has leapfrogged Darling as Britain’s next Chancellor. Just Osborne to go!

Here.

A mugs bet in my opinion. Can you imagine Nick Clegg saying to Cameron or Brown "....the price for our co-operation is that you install Vince as Chancellor so he can eclipse me even more and of course so he can take credit for any economic recovery ?" Can you imagine either of them accepting ? Well if you can then place your bets.... :)

Mind you of them all this is probably the shrewder bet " Paddy Power are offering 4/1 for Chancellor of the Exchequer being the most senior job held by a Lib Dem in a hung parliament....still lousy odds though IMHO.

Certainly I can, he'd be stupid not to.

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As I predicted the pound is slowly strengthening against the USD and is also hovering just below 50 to the Baht.

I believe it will strengthen further against the Baht and the Euro, as the panic that surrounded the possibility of a hung parliament now subsides.

Goldman agrees with me.

Goldman says buy the pound as there's little to fear from a hung Parliament

Goldman Sachs has advised its clients to buy sterling because fears that a hung Parliament will trigger a fall in the currency are overblown......

The full story can be found :

here

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As I predicted the pound is slowly strengthening against the USD and is also hovering just below 50 to the Baht.

I believe it will strengthen further against the Baht and the Euro, as the panic that surrounded the possibility of a hung parliament now subsides.

Goldman agrees with me.

Goldman says buy the pound as there's little to fear from a hung Parliament

Goldman Sachs has advised its clients to buy sterling because fears that a hung Parliament will trigger a fall in the currency are overblown......

The full story can be found :

here

Hmmm, part of me wonders if Goldman is shorting the pound now.

On the other hand I agree with the following comment.

"The Man in the Moon could be the next PM, and the Monster Raving Loony party could have a majority, and the legislative agenda would still be roughly the same.

What the markets are saying right now is that Sterling has already priced in almost anything you can think of that's negative, so the next price move is more likely to be upwards than downwards. "

Mind you, although it looks like a coalition there will be a lot of horse trading to be done.

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As I predicted the pound is slowly strengthening against the USD and is also hovering just below 50 to the Baht.

I believe it will strengthen further against the Baht and the Euro, as the panic that surrounded the possibility of a hung parliament now subsides.

Goldman agrees with me.

Goldman says buy the pound as there's little to fear from a hung Parliament

Goldman Sachs has advised its clients to buy sterling because fears that a hung Parliament will trigger a fall in the currency are overblown......

The full story can be found :

here

many Sterling fundamentals are far better than Euro or USD although that won't become obvious for a while

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As I predicted the pound is slowly strengthening against the USD and is also hovering just below 50 to the Baht.

I believe it will strengthen further against the Baht and the Euro, as the panic that surrounded the possibility of a hung parliament now subsides.

Goldman agrees with me.

Goldman says buy the pound as there's little to fear from a hung Parliament

Goldman Sachs has advised its clients to buy sterling because fears that a hung Parliament will trigger a fall in the currency are overblown......

The full story can be found :

here

Goldman have been wrong on the Euro and Sterling recently

And they are probably wrong now

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As I predicted the pound is slowly strengthening against the USD and is also hovering just below 50 to the Baht.

I believe it will strengthen further against the Baht and the Euro, as the panic that surrounded the possibility of a hung parliament now subsides.

Goldman agrees with me.

Goldman says buy the pound as there's little to fear from a hung Parliament

Goldman Sachs has advised its clients to buy sterling because fears that a hung Parliament will trigger a fall in the currency are overblown......

The full story can be found :

here

Goldman have been wrong on the Euro and Sterling recently

And they are probably wrong now

short term the momentum drivers remain in favour of USD - a big drop would eb a buying opp for GBP Vs USD but Asian curencies still look good to me

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Peter Oborne in the Daily Mail

"Hung parliament could cause economic chaos

Tory warnings that a hung parliament would cause chaos in the financial markets were blown apart this week by investment banking giant Goldman Sachs, which published a research note saying the fears were overblown.

This is far from the first time that Goldmans has come to the aid of the Labour Government. Again and again in the past five years, Goldmans has issued unduly optimistic growth forecasts for the British economy which have not been borne out by the facts.

This raises worrying questions. Not only is Goldmans currently fighting off serious allegations of fraud, but I believe the bank has long been dogged by troubling conflicts of interest in its dealings with government.

In particular, Goldmans has enjoyed very close connections with the Treasury and 10 Downing Street. For instance, it advised the Government in connection with Northern Rock and the aborted sale of the Tote, while former Goldman Sachs banking ace Jennifer Moses was subsequently appointed an adviser to Gordon Brown at No10.

Doubtless there is no connection between Goldmans' generous economic projections on sterling and the business it has received from the Brown government.

But it is hard for outsiders to feel entirely comfortable with an arrangement that allows Goldmans to take fees from Whitehall departments, while acting as an influential analyst of the British economy."

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There's no doubt in my mind that Goldman's is shorting the Pound, others on this forum will tell you in great detail how Goldman operates. Mobi, your numbers are a momentary blip on the radar which will quickly fade.

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There's no doubt in my mind that Goldman's is shorting the Pound, others on this forum will tell you in great detail how Goldman operates. Mobi, your numbers are a momentary blip on the radar which will quickly fade.

My feeling is that most of the bad news is built into Sterling's price.I think also that notwithstanding a hung parliament it's accepted that any government even in coalition will be making the painful expenditure cuts needed.To that extent Goldmans are right.However I also believe that even Goldmans cannot get a completely reliable take on currency markets which is famously like herding cats.There will be a lot of volatility in the next few months on sterling pricing.Overall I would be very surprised if Sterling moved out of the range 1.39 -1.60 against the US dollar.I agree it's amusing bar talk but Goldmans isn't shorting Sterling.

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There's no doubt in my mind that Goldman's is shorting the Pound, others on this forum will tell you in great detail how Goldman operates. Mobi, your numbers are a momentary blip on the radar which will quickly fade.

My feeling is that most of the bad news is built into Sterling's price.I think also that notwithstanding a hung parliament it's accepted that any government even in coalition will be making the painful expenditure cuts needed.To that extent Goldmans are right.However I also believe that even Goldmans cannot get a completely reliable take on currency markets which is famously like herding cats.There will be a lot of volatility in the next few months on sterling pricing.Overall I would be very surprised if Sterling moved out of the range 1.39 -1.60 against the US dollar.I agree it's amusing bar talk but Goldmans isn't shorting Sterling.

Even if we use the range that you've quoted that still allows for a 10% depreciation of Sterling, that's not insignificant and if done over say two months, who wouldn't go for it, GS certainly would! Anyway, academic discussion since a hung Parliament is the only viable way forward according to the polls, disagree however that there is unity and a clear understanding between all players regarding the possible agenda's.

LRB, what say you about GS?

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I can never understand the Thai Baht! why is it that a country where there is near enough a civil war going on it doesn't go to 75 to the pound? Why does a major currency like the pound weaken on news of a hung parliment, I wonder what Thailand's parliment will be like soon? Remember 1997 when it all hit the fan?

There must be some serious back-handers going on? :) And soon they will be found out again.

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I can never understand the Thai Baht! why is it that a country where there is near enough a civil war going on it doesn't go to 75 to the pound? Why does a major currency like the pound weaken on news of a hung parliment, I wonder what Thailand's parliment will be like soon? Remember 1997 when it all hit the fan?

There must be some serious back-handers going on? :) And soon they will be found out again.

The concern of a hung parliment by the markets is that there will be no action on tackling the 170 billion per year deficit, thus adding to the already obscene 900 billion government debt.

The UK printed 200 billion of funny money, has record low rates of 0.5%, even with inflation starting to take hold, a 300 billion special liquidity scheme, 53% of GDP comes from government spending (a record) and after all this the UK posts GDP increases of 0.4 Q4 2009 & 0.2 Q1 2010.

The tables are now turned its 1997 all over again but its the UK in the position of Thailand.

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Looking on the bright side, the pound is still way higher than it has been at times in the past. In the early/mid 80s at one point, it went down to about 30 baht.

I've also been here when it was 91 baht odd (late 97).

Swings and roundabouts.

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Looking on the bright side, the pound is still way higher than it has been at times in the past. In the early/mid 80s at one point, it went down to about 30 baht.

I've also been here when it was 91 baht odd (late 97).

Swings and roundabouts.

Agree..

worse that i ever got ...think late 80s early 90s was 33bt /£ but then a beer inthe Offshore bar at that time was @ 30 Bt. a bottle :)

Then of course on that day in 97 when we changed at @ 97 Bt/£ the same hooch was still only around 50 Bt a pop....happy times...wots it now when the £=49 :D:D

anyway swings and roundabouts .......its a rich mans world...init :D

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I can never understand the Thai Baht! why is it that a country where there is near enough a civil war going on it doesn't go to 75 to the pound? Why does a major currency like the pound weaken on news of a hung parliment, I wonder what Thailand's parliment will be like soon? Remember 1997 when it all hit the fan?

There must be some serious back-handers going on? :) And soon they will be found out again.

The concern of a hung parliment by the markets is that there will be no action on tackling the 170 billion per year deficit, thus adding to the already obscene 900 billion government debt.

The UK printed 200 billion of funny money, has record low rates of 0.5%, even with inflation starting to take hold, a 300 billion special liquidity scheme, 53% of GDP comes from government spending (a record) and after all this the UK posts GDP increases of 0.4 Q4 2009 & 0.2 Q1 2010.

The tables are now turned its 1997 all over again but its the UK in the position of Thailand.

Eh! The crash happened! where have you been??

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fundamentally the Baht is in excellent shape - however the medium and longer term impacts of the current crisis will be a restruction on debt issuance (at the very least a higher cost and less flexibility about terms and periods) and also difficulty verging on impossibility of attracting FDI and tourism until people's memories fade. The exent of all this depends on the denouement of the current problems in the full view of the global media.

However this is largely priced into the Baht right now - Baht is currently nowhere near as strong as it might be expected to be had the crisis not happened. SO the question for Baht is really how well has the market priced in the impact of the aftermath of the demonstrations as this will determine the trajectory of the Baht comparable to other regional currencies. This is far from clear which is why I'd favour some degree of Baht hedge into SGD right now until it becomes clear whether Baht is above or below the level that it should be.

Sterling does seem to have been overdone - the hung parliament concerns are probably overblown; a coalition may actually be more effective than simply handing the reins of power to Dave The Chameleon or opting for more of the Brown stuff. Euro and Dollar have far more difficult structural problems than Sterling although Dollar should have a strong medium term bounce especially if risk assets unwind before concerns over US sovereign debt really take hold.

I'd be far more worried about Euros now and Dollars next year (don't forget that Australian Dollar is the major currency with the greatest medium term potential to unravel from current levels although that's probably not immediate) than I would about either Baht or Sterling.

Edited by Gambles
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Silly question. I have bought clean, new, USD from Bangkok Bank on numerous occasions. Before I make the trek down there (not too positive an idea considering what is going on) does anybody know if they carry clean, new, GBP?

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I can never understand the Thai Baht! why is it that a country where there is near enough a civil war going on it doesn't go to 75 to the pound? Why does a major currency like the pound weaken on news of a hung parliment, I wonder what Thailand's parliment will be like soon? Remember 1997 when it all hit the fan?

There must be some serious back-handers going on? :) And soon they will be found out again.

The concern of a hung parliment by the markets is that there will be no action on tackling the 170 billion per year deficit, thus adding to the already obscene 900 billion government debt.

The UK printed 200 billion of funny money, has record low rates of 0.5%, even with inflation starting to take hold, a 300 billion special liquidity scheme, 53% of GDP comes from government spending (a record) and after all this the UK posts GDP increases of 0.4 Q4 2009 & 0.2 Q1 2010.

The tables are now turned its 1997 all over again but its the UK in the position of Thailand.

Eh! The crash happened! where have you been??

A crash happened, the fundamentals point to another.

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meanwhile back at the ranch....my piece from The Nation last week about THB......

Rampant volatility in currency markets recently surged to a three-month high. There is little sign of this turbulent trend abating. Such uncertainty can have a dramatic impact on key economic drivers, as well as having a crippling effect on the individual finances of expatriates based in Thailand who are remunerated in weakening western currencies or who haven’t hedged their investments and savings.

While the Greenback and the Euro have slid down the league table of global currencies over the past 18 months, the Baht has held its ground (although it has fallen against other trading partner currencies such as Canadian and Australian Dollars) leading senior figures from both the foreign and Thai business communities to repeatedly call on the central bank to cause the Baht to weaken in line with other regional currencies. This would help boost exports by making them cheaper and could provide some solace for the tourism industry by making Thailand a better value destination.

Currency management is one of two control levers which central banks use to influence events related to their country’s financial flows, with the other lever being interest rates. Essentially when one lever is pulled, the other is free to find its own level in response. Fixing or “pegging” the currency rate would cause interest rates to fluctuate in response to market activity. Conversely, if a central bank fixes interest rates, currencies fluctuate instead.

It is possible for both levers can be pulled at the same time However if the combined levels are set at or become too different from the market expectations, pressures build up. Typically these end up being released explosively. A good example of this is the Baht’s valuation in the mid-90s which failed to fully reflect the requirement for overseas capital, foreign goods and expensive imports. Capital tended to be imported in hard currency due to exchange restrictions on the Baht. Foreign investors typically leant in Dollars and demanded Dollars back because they didn’t want to hold an overvalued, hard to trade, artificially priced currency. The problem eventually became self-fulfilling. Pushing interest rates up into the high teens did nothing to address the structural problems, merely papering over the cracks and tending to attract hot money which tried to head for the hills at the first signs of trouble in 1997.

Global Markets Asia’s John Sheehan recently mooted the idea of implementing a fixed Baht exchange rate now, on the grounds that we’re currently in the opposite situation to 1997. Today, we have a global currency system where competitive devaluations are the likely order of the day and fixing the rate at a defined level lower than the current market rate can stimulate growth. Ultimately the explosive pressure could lead to revaluation upwards at some point and meanwhile inflationary pressures may be unleashed but that wouldn’t necessarily be a bad thing right now and could stimulate badly-needed inflows too. A competitive rate fix could also be very good for Thai exports. The proposal is not as crazy as it sounds but may be too risky for most mainstream politicians to consider at this stage.

A key point is that right now both China and the US are accusing each other of manipulating their currencies for their own ends and the truth is that, in different ways, they're probably both right. Ultimately the Yuan will probably win the battle with the Greenback, though essentially it’s a game of chicken to see who'll blink first. Meanwhile all other currencies that “play fair” are paying an exorbitant privilege by subsidising US and Chinese gross domestic product. Thailand does have alternatives however unlikely.

The impact of recent volatility goes beyond economic management and central bank policy; it also creates huge difficulties for expats living in Thailand whose finances are built on foreign currencies.

Scott Campbell, three times S&P award-winning CEO of international portfolio management company MitonOptimal, can claim to have made more prescient currency calls than anyone on his recent trips to Bangkok. In 2007 he predicted weakening of the US Dollar. In June 2008 he called a Dollar bounce when consensus was that the Greenback had become a banana currency, and in February last year he once again correctly called a weakening of the Dollar. During April 26-29 he’ll be briefing investors in Bangkok on surviving and exploiting the prevailing currency calamities.

His recent take has been that US Dollar was due short term strength but Asian currencies could prevail in the mid- to long-term once the various local and global crises are over. Even though currency volatility could surge going forwards Asian currencies that are not linked to the US Dollar, such as Singapore Dollar and Baht, are poised to benefit. Amazingly these two currencies have become a relatively safe haven now, a far cry from events in 1997. One potential solution to successfully navigate the shifting sands of the currency market and the profit at the same time is to hedge into Asian currencies. Scott Campbell has pioneered the only global investment portfolios available fully hedged into Baht and Singapore Dollars as well as the major currencies. As with most things in life hedging your bets is a sensible strategy to adopt, and for the time being the safest bets may be in Asia.

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The pound is a thing of the past, just protected by the financial lobby in London.

Now it looks not too bad against the Baht, but I am still not sure whether I do the exchange now.....questions, questions, questions

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why does it matter for those expats living in thailand if the pound crashes, if they are working in bangkok? then they will have a thai salary paid locally

is it because they rely on their income from back in the UK and transfer pound to baht to support their living costs in thailand?

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<snip>

No, this phenomenon is now primarily the strong baht. Ok we now have an explanation, strong demand for the baht caused by inward capital flows. But you are left wondering just who on earth sees fit to invest in Thailand?

<snip>

When there's blood on the streets, buy property.

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