Baht weakens to new low in 2 years

[cclub75]

I beg to differ.  As the Baht is already down 10% against the Dollar since the beginning of the year (from around 38 to over 42), and prices have not increased by 10%.

Not... yet.

Everybody hold their breath... and decided to postpone hike in prices as much as possible... Because competition and because.... well thai way.

In my sector (industry)... it's like a show... Everybody is looking after the shoulder of the others. But at one point, you don't have choice anymore.

So you perfectly summerize the situation : the businesses who work in USD... have ALREADY lost 10 % of their... margin ! Period.

Suffice to say that if the oil price continue to increase and the USD also... then it's the end. A very nice "cisor effect" indeed.

But before that : Thailand is going to have important prices hikes, in many sectors.

[Nam Kao]

Interesting, as the baht has been going down a couple times i have mentioned

this to a fewThai friends, just as general conversation, nothing demeaning. Then last time i

I mentioned it with my wife there. After she pulls me aside and says "Dont talk

about this with Thais" and would not give me a reason why. Whats up with this?

Do they lose face? When the dollar was down it didnt offend me.

???

[cclub75]

I mentioned it with my wife there. After she pulls me aside and says "Dont talk

about this with Thais" and would not give me a reason why. Whats up with this?

Do they lose face?  When the dollar was down it didnt offend me.

???

<{POST_SNAPBACK}>

No offense : but I would say regular thai bullshit.

How many times I heard that : "no you can't say that. No you can't do that it won't be accepted or it won't be understood" bla bla bla bla etc.

You know what ? After 2 years working in Thailand I start to believe that it's only a "trick".

The "cultural" difference trick. The joker. Maybe i'am wrong but....

I believe that the Thai people can understand, like an "adult", that their country is in deep trouble. We have to explain. Anyway : they just have to look into their bank account...

We should stop to believe the Thais (usually) who want us (foreigners) to believe that the Thai people is "so different".

[haha]

Interesting, as the baht has been going down a couple times i have mentioned

this to a fewThai friends, just as general conversation, nothing demeaning.  Then last time i

I mentioned it with my wife there. After she pulls me aside and says "Dont talk

about this with Thais" and would not give me a reason why. Whats up with this?

Do they lose face?  When the dollar was down it didnt offend me.

???

<{POST_SNAPBACK}>

different worlds. my take is - your celebrating the woes of the thai baht is the same as wishing for the demise of thailand.

if the roles were switched, I think I would feel the same way.

..but then, that's me.

[Simpleton]

It`s the IMF`s fault, Who else can they blame?

<{POST_SNAPBACK}>

George Soros?

[Thaiquila]

The baht dollar rate has been dancing around low 40s since 98, right?

So what is the panic now?

Yes, it did strengthen for awhile, largely because the USD had weakened. Now the USD is stronger, but not only against the baht, also the Euro and most currencies.

OK, if it falls to 50 or 60, that would start be serious ...

Indeed, the Thai economy does have serious problems, begin to solve them and currency weakness will take care of itself.

There is the rub, the pain that will be involved to solve the problems.

There is cause for pessimism there.

[Heng]

Interesting, as the baht has been going down a couple times i have mentioned

this to a fewThai friends, just as general conversation, nothing demeaning.  Then last time i

I mentioned it with my wife there. After she pulls me aside and says "Dont talk

about this with Thais" and would not give me a reason why. Whats up with this?

Do they lose face?  When the dollar was down it didnt offend me.

???

I'm Thai and downright lovin' it. As are any Thais (in export or who own busineses overseas). And yes, given the cohesive nature of Thai families, it does trickle down to a lot of other people who aren't so fortunate as well.

[Heng]

.... now the increase in construction materials though, now that DOES hurt a bit. You win some, you win a little less.

[sibarnes2000]

Just to add a bit of perspective to the argument if you want to look at the performance of the Baht over the last year look at these 2 graphs:

This one shows that the Baht is actually stronger than it has been at times over the last year against sterling.

http://www.exchangerate.com/charts.html?ac...ncy=238&cid=225

and this one shows that even though the Baht is declining against the US dollar it is not actually too far different than it was 9 months ago.

http://www.exchangerate.com/charts.html?ac...ncy=239&cid=225

Simon

[PeaceBlondie]

Could it be that any negative comparisons of Thailand with the rest of the world, including the relative fall of the national currency, makes Thailand and Thais lose face? My old boyfriend used to ask me, "Why is the dollar so much stronger than the baht?" Even the unrelated fact that it takes more baht to equal a dollar, even though the Japanese and Turkish currencies are much 'cheaper,' I suspect some Thais do take it personally.

And even if the farang thinks he isn't gloating over a decline in the value of the baht, some reasonable Thais will assume he's gloating.

[lostsoul]

How refreshing to read a good thought provoking posting.

Hope those Cha Am losers dont get on here as it will go down hill fast.

Edited July 26, 2005 by lostsoul

[george]

Baht weakens again upon purchase of dollar

BANGKOK: -- The Thai baht has weakened to 41.54 to the US dollar along with other regional currencies this morning, as investors turned to buy the greenback since their concern over the Chinese yuan revaluation eased, according to a money dealer.

Preeda Chumpranee of the Bank of Ayudhya Plc, said the baht strengthened from 41.43 to hover around 41.38-41.40 to the US dollar at the opening of the morning session.

However, the local currency had then weakened quite sharply to stay at 41.54 to the dollar upon the purchase of the greenback by importers and local commercial banks, he said..

The baht depreciation is considered steep when compared with other regional currencies including Japanese yen, which weakened to 111.75 to the dollar.

Mr. Preeda projected the baht would continue to depreciate in the same direction with other regional currencies now that investors turned to buy the dollar because their concern over the managed float of yuan eased.

However, he said, investors should closely monitor key economic figures including the economic growth projection revision by the Bank of Thailand and gross domestic product of the US in the second quarter to be released on Thursday.

He forecast the continued purchase of the dollar would press regional currencies to weaken further.

--TNA 2005-07-26