Wtf! 1 Euro Below 40 Baht ?

[mmh8]

Naam: an interesting topic. Anglo Irish received until now bail-out cash equivalent to 15% of Ireland's GDP (not to talk about the cash which was pumped into other irish banks). until a few weeks ago, whatever was done was considered "sufficient". but the pundits have voiced new doubts and rumour has it that additional cash is required to save the bank. if this is really the case it will cause additional strain on the currency of €UR-Land.

but you should elaborate why the EUR should fall heavily on the Germans heads. did the German army march into Ireland, Greece, Spain and force the governments of these countries to cheat, lie, forge, commit fraud, etc. to abolish their currencies and adopt the EUR?

um not really would just be interested to see how it all pans out, euro was considered a big joke for a long time, Ireland did well out of it. Would kind of be happy to see how the allemandies who have a habit of criticising other currencies in the region deal with the latest challenge were it to be pulled down by combined, greek , irish and some new eastern european members contributions.

Purely on a scientific basis mind, what would the impact be on europe? strong gold backing them up, it would be very interesting, since the germans took it upon themselves to be head of the euro currency

let's be fair. that the "allemandies" criticised or have a habit to criticise other currencies is either a wrong perception or a fairy tale. eastern european countries do not play a big role as far as the EURo's future is concerned. but the EURo's present status might be well brought down by the debt problems of Greece, Spain, Italy, Portugal and Ireland if those can't be solved. the conception of the EUR was never a joke and for a certain timespan all members benefitted immensely until the irresponsible political clowns in the afore-mentioned countries abused the system and piled up debt because suddenly the 14% interest of the Peseta, the 12% interest of the Lira, the 15% interest of the Drachma, the 12% interest of the Escudo (don't remember pre-€ irish interest rates) were replaced by extremely low € interest.

a breakdown of the existing EUR-zone would have a global impact, sovereign €-debtors would default thus causing tremendous risk aversion which would endanger other sovereign debtors globally, even on other continents, and their ability to refinance their debt. in short, we would see a domino effect with implications we can't fathom presently.

needless to say that Great Brittania and Brits, Scotland, Wales and Northern Ireland as well as their inhabitants would receive a very hard economic kick in their àsses too.

by ze vay, did i mentchion zat i'm a Tchermann?

Is the bank of europe not based in one of those zerman cities like munich or something?. Thus were the fall to happen it would be on the allemandie head . Also the euro really was a joke, surely you realise this, it was never expected to do as well as it has?

[LaoPo]

Yes its bad, i get all my income in Euros so i had to raise my prices. My clients did not object so i still have the same kind of income. Still its not nice to do.

....were you able to raise your prices since the Euro gave Baht 50 to the € and dropped to Baht 39 to the Euro like now ?

I don't object because I hope you get very rich, but if the "economy" would do the same we're all going down the drainer. That would mean a 20% raise in ALL prices.

On a side note: European families, discussing their upcoming holidays will think 3 times before they book a holiday to Thailand....

a € 1.000 gave them Baht 50.000 to spend, one year ago....

now: Baht 39.000

go figure; and if the locals (like yourself for example) raise the prices with another 20% the market will collapse. Of course, you're in a niche market, selling to people who can afford so, but under normal circumstances an economy can't survive like this.

The Thai hotels and resorts, trying to sell their rooms to the European tour operators, will scratch their heads, asking themselves <deleted>....:wacko: WHERE THE HECK ARE THE (European) TOURISTS??

LaoPo

[LaoPo]

Good for us Thais. We can get more Euro, Dollar, Pound, Franc, Mark, Drachm, Lira, Gulden, Shiling, Escudos, Koruna, Pesetas, Tolar, etc.

Yes....for the ones that can get a Visa......a very select and small group of people.

For the Thai in the street...he doesn't give <deleted> because he gets paid in Baht and spends in Baht.

Thailand is becoming too expensive for exports and that's hurting the economy real bad.

LaoPo

[LaoPo]

Good for us Thais. We can get more Euro, Dollar, Pound, Franc, Mark, Drachm, Lira, Gulden, Shiling, Escudos, Koruna, Pesetas, Tolar, etc.

Just a hint, so can I, just as many in fact, and I'm not Thai.

Good for anybody from the Euro zone earning THB.

Yes, but how many would there be...a few thousand ?

LaoPo

[LaoPo]

it won't stop at 39 baht.

Experts and I agree that the EUR will continue to fall, probably stabilizing at between 33 and 36 baht.

We could very well also see the EUR come to par with the USD.

Not a chance.

The $ will drop and more than most here think.

The positive thing is that the Baht will follow and lose solid ground and come to a more acceptable level.

My fortune teller told me so

LaoPo

[Huey]

Good for us Thais. We can get more Euro, Dollar, Pound, Franc, Mark, Drachm, Lira, Gulden, Shiling, Escudos, Koruna, Pesetas, Tolar, etc.

Yeah untill you try and export anything overseas. Who wants your rice at $900 a ton when they can get it from Vietnam at $400.. I like Hom Mali but damm not that much.

Who wants anything else that you make when China dose it all SOO much cheaper and better quality European and US goods are now much more affordable?

Yeah enjoy while you can, your factory owners and exporters are crying. China pegging it's yaun to the dollar is the best thing they could have done for their businesses.

[roamer]

My local supermarket in the UK has stopped stocking Thai coconut milk, too expensive and no longer competitive with other producers. A small example, well not that small as its a major chain. Thailand's current monetary policy is perilous for an export driven economy in a belt tightening world.

[LaoPo]

Good for us Thais. We can get more Euro, Dollar, Pound, Franc, Mark, Drachm, Lira, Gulden, Shiling, Escudos, Koruna, Pesetas, Tolar, etc.

no you can't!

..when I answered, earlier to the esteemed Thai financial and currency debater Piengrudee, I have to admit I missed all the other currencies, now in BOLD....hahahahahahaha:lol:

Good on you Wally!

:rolleyes:Aahhhhh... I remember the good old days I was traveling throughout Europe with so many envelopes, 11 or more, filled with equally so many coins and paper money from so many different countries...The same is still happening when one travels in Asia.

LaoPo

[LaoPo]

Its all a bit naive though, as the currency grows stronger the export buisness suffers, since thai is no.1 ( not sure if still the case) producer and exporter of rice other countries will look elsewhere, same goes for rubber, sugar( though not this year apparently) etc

Thai rice exports dropped 30% in the first 6 months of 2010.

Sugar is going through the roof and expected to rise 40-50% this year, also due to bad crops in Indonesia and Pakistan.

LaoPo

[Robby nz]

The Baht hasnt really appreciated against other currencies its the Euro Pound and Dollar that have dropped.

There are still plenty of countries out there to trade with as NZ found out.

They were at one time largly dependant on the US, GB, EU for trade.

Now they have diversified to mainly asian and other markets that arent experencing the same devaluation.

Therefor the NZ dollar has remained strong along with the Baht.

The US$ has become a world (default) currency and many things are quoted in $'s.

This I suspect will change soon as the US continues its slide.

[Huey]

My local supermarket in the UK has stopped stocking Thai coconut milk, too expensive and no longer competitive with other producers. A small example, well not that small as its a major chain. Thailand's current monetary policy is perilous for an export driven economy in a belt tightening world.

Perfect example of what I'm talking about. One of the items I export are vehicle accessories, I have become 20% less competitive in just 3 years when the Baht was 38 to the dollar. Now why pay 50% more for Thai goods when China can provide them at the same quality or near too it, for half price. I hope this stops soon.

[LaoPo]

The Baht hasnt really appreciated against other currencies its the Euro Pound and Dollar that have dropped.

There are still plenty of countries out there to trade with as NZ found out.

They were at one time largly dependant on the US, GB, EU for trade.

Now they have diversified to mainly asian and other markets that arent experencing the same devaluation.

Therefor the NZ dollar has remained strong along with the Baht.

The US$ has become a world (default) currency and many things are quoted in s.

This I suspect will change soon as the US continues its slide.

And that's why NZ's exports are falling too, in line with Thailand's.

Minus 7.7% in 2009 versus 2008; let's wait and see what 2010 has in mind.

On the other hand, NZ's Imports also dropped significantly: 17%.

http://business.newzealand.com/Economy/15264.aspx

LaoPo

[LaoPo]

My local supermarket in the UK has stopped stocking Thai coconut milk, too expensive and no longer competitive with other producers. A small example, well not that small as its a major chain. Thailand's current monetary policy is perilous for an export driven economy in a belt tightening world.

Perfect example of what I'm talking about. One of the items I export are vehicle accessories, I have become 20% less competitive in just 3 years when the Baht was 38 to the dollar. Now why pay 50% more for Thai goods when China can provide them at the same quality or near too it, for half price. I hope this stops soon.

Isn't it time to buy a ticket to China then ?

I mean, many Thai producers packed their suitcases and went to Vietnam and China also.

It's a logical step.

LaoPo

[roamer]

The Baht hasnt really appreciated against other currencies its the Euro Pound and Dollar that have dropped.

There are still plenty of countries out there to trade with as NZ found out.

They were at one time largly dependant on the US, GB, EU for trade.

Now they have diversified to mainly asian and other markets that arent experencing the same devaluation.

Therefor the NZ dollar has remained strong along with the Baht.

The US$ has become a world (default) currency and many things are quoted in $'s.

This I suspect will change soon as the US continues its slide.

Not that simple. Can't compare LOS with NZ. The latter has products such as meat and dairy products that form a large part of its exports and a quality and cost base that make these products desirable and very competitively priced with other producers. LOS has to compete with other nations in the region and Asia as a whole with products that can be sourced cheaper elsewhere at present.

[Chunky1]

Don't worry, things are going to get better as soon as the USA and the UK and the rest of Europe start running trade surpluses and stop running large budget deficits.

[Englander]

Don't worry, things are going to get better as soon as the USA and the UK and the rest of Europe start running trade surpluses and stop running large budget deficits.

But the USA is not even attempting to sort out its deficits its spend spend spend for whichever party you vote for, so no need to compare that socialist enclave to us capitalists of Western Europe.

PS See Germany's surpluses.

[garyk]

It hurt's me. I am paid in dollars.

But no one will suffer more than the thai. With loss of tourism and when we go home. The gals we are with here will be left to finding another farang.

I am vacating when it reached 26-27. But i have a nice home back home and will kick back there untill i find another place to live, visit log term or whatever you call it.

[WinnieTheKhwai]

Good for us Thais. We can get more Euro, Dollar, Pound, Franc, Mark, Drachm, Lira, Gulden, Shiling, Escudos, Koruna, Pesetas, Tolar, etc.

Just a hint, so can I, just as many in fact, and I'm not Thai.

Good for anybody from the Euro zone earning THB.

Yes, but how many would there be...a few thousand ?

Well, there's me, myself and I, for starters..

Seriously though: It's just money. I was here on a lot less money than now and was very happy. Honestly if money is a main concern then just go find a country with a more favorable exchange rate. Simple enough.

Edited August 31, 2010 by WinnieTheKhwai

[mahtin]

Is the bank of europe not based in one of those zerman cities like munich or something?. Thus were the fall to happen it would be on the allemandie head . Also the euro really was a joke, surely you realise this, it was never expected to do as well as it has?

The European Central Bank is located in Frankfurt-am-Main.

http://en.wikipedia.org/wiki/European_Central_Bank

[Kan Win]

Hi Folks,

Me, I lost a lot of money back in those days that the $US was at 25, and the DMark at 16-19 to the baht, times by 1.96 = Euro approx 31-37. and then the CRASH That was when I lost it.

A Good Look at the Thai Financial Crisis in 1997-98

1.Introduction

An open economy is susceptible to a speculative attack; the smaller the economy, the more severely it is likely to get hurt. Good balances in economic components are the only immunity as well as medicine to such an attack. In 1992, the European Monetary System had to be practically abolished as its member economies had been consistently hit by speculators who had seen a way to exploit economic imbalances that made possible a devaluation of the economies' currency. Two years later, Mexico had encountered calamitous, speculative attacks that had forced it to devalue the peso by more than 50%. Mexican banking and private sectors all got hurt and the economy had stopped growing for more than half a decade. On the other hand, only the central banks of the European economies had forfeited currency in their foreign reserve in order to promptly stop the crisis. Thailand was another open economy loudly hit by speculative attacks. It had enjoyed too much and too recklessly wealth in its good days, the habit which had given rise to serious imbalances of a number of the economy's components. The overoptimistic characteristic of the economy had essentially led to the deterioration of its health. With the weak body, not for a long time could it stand against outside attacks from speculators. Being depleted of its foreign currency reserve in attempts to fight against the speculative forces, on July 2, 1997, Thailand decided to switch to a flexible exchange rate regime. The Thai baht was depreciated by more than 50% by the end of that year; the Thais had experienced a collapse of their economy for the first time.

This paper was aimed to give a clear picture of the Thai financial crisis and insight thoughts on some of the issues related. The paper was divided as follow: Section( 1) Introduction, Section( 2) An Anatomy of the Thai Financial Crisis, Section (3) Did the Thais Ignore the Painful Lessons of the Mexico?, Section(4) An Evaluation of the Thai Government Performance along Thailand's Economic Path and in Response to the Crisis, (5) Final Remarks on the Future of the Thai Economy, Section (6) Conclusion.

More Here

So what comes around goes around and I waited a long time for this to happen. Am I the only one, no, I do not think so.

Sawadee

P.S. Looking at the Pound Sterling at 47 baht and a bit, my best was 44 to the pound years ago and our family house in 1988 when I sent funds over we got 42 baht to the pound. Buying Euro very soon