UK Pound Collapse 47.99 against the Baht

[rreddin]

The weak pound and Euro will have an impact on Thailand. Huge amounts of money made in the official as well as the grey economies of the UK and Europe by Thais are sent back to Thaialand each month. Many families rely on that income.

In my village there are two families who are supported entirely from money sent back from the UK or Europe. There are several other families whose children's university education is being paid for by money received from overseas. The purchasing power of that money is being rapidly eroded. As the Brits, Europeans, Americans etc. feel the pinch they will have less money to send to Thiland.

Thai goods will become comparatively more expensive. For example all those motor vehicles being assembled in Thailand for the US and European markets will cost more. That is unlikely to increase sales. More to the point, production could be moved from Thailand.

Nor is it good news for the Thai tourist industry. The overseas visitors that do come will have less to spend.

More jobs will be lost in Thailand, but at least there is the comforting news that up to half a million vacancies are being created by the deportation of foreign workers.

[Bagwan]

Oh my goodness, I meant to say Chief Exec, I'll have myself taken out and shot immediately, it's simply not acceptable to make such an error, grovel, grovel ...

You obviously are not keeping yourself up to date. What you intend is no longer possible. The days of Thaksin are over.

[Thai at Heart]

This hand wrenching about the exchange rate effecting tourism is really of an issue if the government gives a dam_n about the people who may lose their jobs if the tourists cease coming to Thailand.

If tourism went down 10% further next year, the total effect on the political and economic state of the country would be virtually zero, so the government doesn't care. Yes, tourism employs a lot of people, but if they don't work in tourism, it isn't as though they sign on the dole, they go somewhere else or go home to farm. These are largely not high tax paying industries, paying relatively low wages to largely unskilled workforce with no coordinated voice. Sad but true.

The net loss to the country and the government of drop in tourism is not that significant. I would hazard that Toyota's problems right now have got a far greater priority to the finance ministry and the BOT than tourism.

Dip in the pound right now caused by political and economic mess in the UK. Get rid of Gordon, back to normality end of the year.

Edited March 3, 2010 by Thai at Heart

[ivowatson]

YIPPEE

Good news for me - I'm going to the UK this month.

Also, when I send money home to my mother, she gets more.

It isn't too bad for the pensioners - it was only 37 baht to the pound when I first came here in 1992.

It might make a few of the undesirable stay away from here, or go back too.

Your post is total rubbish.

Back in the early 90s the cost of living in Thailand was less than a quarter compared with today`s prices

In '94 I rented a small bungalow 1 km from the beach without a/c at 6000/m, now I rent a small townhouse with a/c at 6000/m.

A case of Singha was 480 in '94, now it's 580, a fake jeans was and is still 350. A bowl of noodle soup was 20, now it's 35. In '94, I almost fell from my chair when charged 80++ for a coke in the sheraton, I think it's 100 now. Yes, diesel was about 10 baht/l now it's almost 30. IMO your 'rubbish' less than a quarter relates only to hookers but I always thought even 500 was way too much.

[cavelight]

[gotlost]

The joy today is GBP 48.19, USD 32.27, EUR 43.88

[lonexpat]

Clothes like t-shirts & cheap day wear can be got in Uk much cheaper & better quality than Thailand.

Thailand is not nearly as cheap as people think imo.

Bar food and transport in general, the Thais get totally ripped off on what they buy.

[robert00]

The Pound and the Euro are in deep trouble and it will get worse!

I don't know why you guys are so worried at the drop of your currency, must be because you are used to getting 50-60 bath to the pound. Or 49.00 Bath to the Euro.

We Ozies have been struggling along with our just over $1000 Pensions = 35.000 Bath for ever. Not so long ago we got 22.00 Bath to the dollar, how would you like to live on that?? and do the normal visa runs as well.

Doesn't live much for extravaganza.

[Boksida]

Good news! The Thai Customs Department thinks the GBP has recovered already. I was charged Customs and VAT on equipment imported from the UK today with the exchange rate for the calculations based on 54.0249.

[Neeranam]

YIPPEE

Good news for me - I'm going to the UK this month.

Also, when I send money home to my mother, she gets more.

It isn't too bad for the pensioners - it was only 37 baht to the pound when I first came here in 1992.

It might make a few of the undesirable stay away from here, or go back too.

Your post is total rubbish.

Back in the early 90s the cost of living in Thailand was less than a quarter compared with today`s prices

In '94 I rented a small bungalow 1 km from the beach without a/c at 6000/m, now I rent a small townhouse with a/c at 6000/m.

A case of Singha was 480 in '94, now it's 580, a fake jeans was and is still 350. A bowl of noodle soup was 20, now it's 35. In '94, I almost fell from my chair when charged 80++ for a coke in the sheraton, I think it's 100 now. Yes, diesel was about 10 baht/l now it's almost 30. IMO your 'rubbish' less than a quarter relates only to hookers but I always thought even 500 was way too much.

This is a very strange thing to say and to use his words - total rubbish.

In 1995 I rented a town house in Nontaburi for 4000 baht a month. Now I rent one in Khon kaen for 3500 a month(prices in KK have risen much more than Nont. too).

For example, I used to buy three bottles of Chang for 100 baht or 100 baht for a bottle of Saeng Som. Don't know how much they are now but surely not 4 times and this is just inflation.

In 1997, the pound went crazy against the baht and those earning pounds were instantly much richer. I know little about currency and financial matters but doesn't everyone know that there are cycles? Did the guys moving here post 97 really think the pound would stay at 70 baht? 47 baht to the pound is good - stop moaning.

[Neeranam]

YIPPEE

Good news for me - I'm going to the UK this month.

Also, when I send money home to my mother, she gets more.

It isn't too bad for the pensioners - it was only 37 baht to the pound when I first came here in 1992.

It might make a few of the undesirable stay away from here, or go back too.

I have read a lot of crass comments on TV but this one takes 1st prize. Do you really have a brain?

I don't like your tone - be careful or you may get a message from a moderator.

Which part of my post are you referring to?

Good news for me? This is certainly true.

My mother gets more? This is true.

Pensioners? The baht is higher that before.

Undesirables?

If you are the 4th, I was just stating a fact, not trying to insult or harm. Try practicing acceptance at what life throws at you without turning angry and insulting people.

[Paulo1]

YIPPEE

Good news for me - I'm going to the UK this month.

Also, when I send money home to my mother, she gets more.

It isn't too bad for the pensioners - it was only 37 baht to the pound when I first came here in 1992.

It might make a few of the undesirable stay away from here, or go back too.

I have read a lot of crass comments on TV but this one takes 1st prize. Do you really have a brain?

I don't like your tone - be careful or you may get a message from a moderator.

Which part of my post are you referring to?

Good news for me? This is certainly true.

My mother gets more? This is true.

Pensioners? The baht is higher that before.

Undesirables?

If you are the 4th, I was just stating a fact, not trying to insult or harm. Try practicing acceptance at what life throws at you without turning angry and insulting people.

Its all getting a little emotional.

I am short, so it can fall of the face of the earth as far as i am concerned. For the english, you should just buy some contracts against the pound and you may even make money. I must say this is GLOBAL and the pound is the currency leading the way at present. Like another said , the world is in the shit. so nothing has changed really. Except your cost of living in Thailand which has become over priced in my opinion. But still cheap.

The other thing that you need to be aware of this week is that its NFP (non farm payrol) from the USA on friday that will move the currency.

If anyone want to know when and how to hedge against the GPB/Global crisis , let me know. but I suspect you know already.

Perhaps its time to go back to the homeland and have a traditional english curry....lol. No offence.

[mommysboy]

YIPPEE

Good news for me - I'm going to the UK this month.

Also, when I send money home to my mother, she gets more.

It isn't too bad for the pensioners - it was only 37 baht to the pound when I first came here in 1992.

It might make a few of the undesirable stay away from here, or go back too.

I have read a lot of crass comments on TV but this one takes 1st prize. Do you really have a brain?

I don't like your tone - be careful or you may get a message from a moderator.

Which part of my post are you referring to?

Good news for me? This is certainly true.

My mother gets more? This is true.

Pensioners? The baht is higher that before.

Undesirables?

If you are the 4th, I was just stating a fact, not trying to insult or harm. Try practicing acceptance at what life throws at you without turning angry and insulting people.

Sounds like Nearlynum was expecting a gold medal or prize for literature.

Paulo reports he's not concerned- with a name like that why does that not surprise me?

[citizen33]

Interestingly it is the Euro 'crisis' that has been in the British news for the last couple of days rather than the pound. This might be selective perceptions/wishful thinking, but there isn't really the same sense of crisis on the street here that there is on TV. I guess one or two sources like The Mail are pushing the message of doom, though they are also running scare stories about Greece and the impact on European finances. Actually there have been moderately encouraging reports this week on UK output and unemployment. For people in good jobs, disposable income has risen because of low mortgage rates and fairly low inflation. Of course, what worries everybody is what happens in 2011-12 when there will be savage public sector expenditure cuts and job losses. The exact package is unclear yet, though the University sector has already been hit by cuts of nearly a billion sterling (almost enough to cover RBS's bonus pool). I must admit I'm feeling a bit gloomy about the cost of my trip to Thailand later this month, but at the moment the monthly budget in the UK isn't a problem.

Edited March 3, 2010 by citizen33

[roamer]

Regardless of the political and economic uncertainties that are affecting Sterling at the moment I think that most people will accept that next week, next month next year Britons will awake to a functioning democracy and a functioning, albeit weak economy. In the future our royal succession might be in doubt, Good Queen Bess has been around a long while but its unlikely that there will be rioting in the streets over which member of the family takes the reins. I suppose its possible that there are those in the military who harbor doubts about the direction the nation is heading in but I don't think the tanks will roll onto the streets, even less likely that they will start fighting amongst each other heaven forbid, as you might imagine that could get very messy. It even seems almost certain that the nasty little problem of bombings and civil insurrections in Northern Ireland has been largely put to bed.

I suppose we must be grateful for small mercies because uncertainties like those above could rip the place apart.

[Netfan]

Very astute post Roamer

[chiang mai]

Well it looks like it's a flat day on the exchanges, GBP/USD seems stuck around 1.50, I guess we're waiting for the next piece of good or bad news to determine direction - a positive opinion poll from Nationwide was a plus today as was a Nick Clegg interview where he said he would support, for the good of UK Plc, which ever party the Lib Dems had to get into bed with, plus, the Pru/AIG deal seems to be seriously in doubt so it's all positive news thus far. can't help but feel though that the direction remains downwards - personally I just can't see news of that deal having played any part in the fall of two days ago.

Also, interesting that onshore and offshore rates seem to have diverged slightly, it seems cheaper to exchange offshore rather than onshore, if XE/Reuters and http://bankexchangerates.daytodaydata.net/default.aspx are to be believed, not sure why though.

[MaiChai]

It's not the Baht that's strong it's the Pound and the Euro that are weak.

With the prospect of a hung parliament in the forthcoming elections the prospects for the Pound are very dire indeed.

Am I the only one considering my future in Thailand, this forum has seen an increase in those struggling to meet the minimum financial requirements of the immigration authorities, and I am aware that a number of expats have said enough is enough and returned to their homelands.

Whilst considering my future in Thailand I have to wonder what I would be going back to.

I came to the conclusion a long time ago that you cannot give up links to your home country and retire in Thailand. There are too many obsticals in the way and too many reasons why you cant do this. Example: who is going to take of you when you go senile? No social services safety net here; only vultures looking for rich pickings. Even if your teerak is 100% good then there is still the family...

[chiang mai]

I think that one of the biggest issues ex pats face when retiring in Thailand is deciding what is their home currency. Those who converted all of their foreign currency into Thai Baht when they arrived are now big gainers, assuming they arrived a couple of years ago or more. But those who continued to leave their funds in a home currency and chase dividend or interest income in a "safe" environment are now paying the price for that - the trouble is that most people want the best of both worlds, a "safe" deposit base in their home country and cheaper cost of living here in Thailand and quite simply, we can't have it both ways it seems, not for very long at least.

What was it that man said, more money has been lost chasing interest rate income than through any other means, it seems that's quite true.

[Abrak]

I came to the conclusion a long time ago that you cannot give up links to your home country and retire in Thailand. There are too many obsticals in the way and too many reasons why you cant do this. Example: who is going to take of you when you go senile? No social services safety net here; only vultures looking for rich pickings. Even if your teerak is 100% good then there is still the family...

While I sympathize with your conclusion, I think you are looking at the problem backwards. It is not so much as whether your teelak will look after you in your old age (or even her family); you should really consider whether that Western safety net is half as safe as you think it is. There really is no indication that any Government will honor their pledges to provide the sort of safety net they are providing now.... into the future. They simply cannot afford it.

[HardenedSoul]

It's not the Baht that's strong it's the Pound and the Euro that are weak.

Am I the only one considering my future in Thailand, this forum has seen an increase in those struggling to meet the minimum financial requirements of the immigration authorities, and I am aware that a number of expats have said enough is enough and returned to their homelands.

Whilst considering my future in Thailand I have to wonder what I would be going back to.

I came to the conclusion a long time ago that you cannot give up links to your home country and retire in Thailand. There are too many obsticals in the way and too many reasons why you cant do this. Example: who is going to take of you when you go senile? No social services safety net here; only vultures looking for rich pickings. Even if your teerak is 100% good then there is still the family...

Thailand is NOT a country in which foreigners want to be counting the pennies. If they can't afford to be here, they should return home. I for one would be gutted if I had to go back to London but if I was struggling, I'd rather be there than here.

[britmaveric]

^Indeed no dosh in Thailand would be pure hel_l.

[Penkoprod]

While I sympathize with your conclusion, I think you are looking at the problem backwards. It is not so much as whether your teelak will look after you in your old age (or even her family); you should really consider whether that Western safety net is half as safe as you think it is. There really is no indication that any Government will honor their pledges to provide the sort of safety net they are providing now.... into the future. They simply cannot afford it.

You are SO correct !!!!

Too many people are under the impression that all they have to do, is turn up at the airport and announce "I'm BAAAAAACK" and everyone will welcome back the prodical son with open arms, and a fatted calf. The reality, in fact is that you go right down to the back of each and every very long queue, like the "traitor" those that hold the purse strings think you are.

Penkoprod

[kevozman1]

Thailand's two main industries are tourism and exporting food products.

I think a high baht against the euro and pound would not favour most

people in Thailand, especially considering a very high percentage of

tourists to Thailand are from countries in the pound/euro. I can also

see many people who live off interest or pensions simple not being

able to live the kind of life they want in Thailand and then returning home.

I remember once I travelled to Thailand and got 74 baht to a pound......

those were the days. Just hoping the pound can hold to a rate at or above

50 baht - £1. I think most people could live with that. If it drops below

45 baht - £1 then I think the shit could hit the fan in places like Pattaya.

[Neeranam]

^Indeed no dosh in Thailand would be pure hel_l.

10 years ago I had no money here - looking back, it was the best time of my life.

Didn't take you as a breadhead Brit.

[Neeranam]

45 baht - £1 then I think the shit could hit the fan in places like Pattaya.

I take it you mean the Old Age Pensioners there. It may be a blessing in disguise - what a great opportunity to go to a temple and renunciate like most Thai men over 60, where they might find real happiness.

Edited March 3, 2010 by Neeranam

[Loz]

WHat is all this SUB 50bhat nonesense!?????

just sent money from Barclays to Thai account at 53bht to the pound!!

dizzy bint at the bank reckoned "don't buy bhat here, you'll get a better rate in THailand!!"

SO there where have it folks! Panic over..

BTW, it quotes 49.217 on their FE WEB PAGE

[whichschool]

^Indeed no dosh in Thailand would be pure hel_l.

10 years ago I had no money here - looking back, it was the best time of my life.

Didn't take you as a breadhead Brit.

In a earlier post you said that the low sterling rate would get rid of scumbags (as people without millions are obviously scumbags im taking it), now it appears you were one of these scumbags 10 years ago and didnt leave so your expat cod-theory that involves looking down ones nose at all others has been disproved by your very good non scumbag self.

[safeandsound]

Even at these exchange rates the comparison of cost of living is still worlds apart between here and the UK.

Here:

No council tax.

Electric and water has been FREE on many occasion when the monthly bin has arrived at our post box.

Food and water is as cheap as chips, literary.

Public transport is the equivalent to pennies.

It only costs allot here when you go out spending like there's no tomorrow in the bars/clubs. Live sensibly and it is, still, very cheap here.

I'm far from skint but I would rather be here than London getting by, day to day, standing in the Job center Que along side Mr Polanski who doesn't speak a word of English with offers of work for a shilling a day and a horse shit sandwich in the miserable cold, damp, depressing weather.

[HardenedSoul]

Even at these exchange rates the comparison of cost of living is still worlds apart between here and the UK.

Here:

No council tax.

Electric and water has been FREE on many occasion when the monthly bin has arrived at our post box.

Food and water is as cheap as chips, literary.

Public transport is the equivalent to pennies.

It only costs allot here when you go out spending like there's no tomorrow in the bars/clubs. Live sensibly and it is, still, very cheap here.

I'm far from skint but I would rather be here than London getting by, day to day, standing in the Job center Que along side Mr Polanski who doesn't speak a word of English with offers of work for a shilling a day and a horse shit sandwich in the miserable cold, damp, depressing weather.

Just spoke to a couple of the guys from the old job in the City . . . they reckon that Centerparc vacations are replacing the long haul flights this year. Their expense account budgets have been decimated, there's been a noticeable increase in petty crime, tube fares are up, fuel's up, there are all year sales on Oxford Street and untold Poles have legged it back to Warsaw.

The only good news is that lots of estate agents are being made redundant . . . especially those w***ers at Foxtons