Any Reason For Stronger Us $ Vs Baht

[brd]

Thailand an export economy does need a cheaper Thai Baht basically and Import export firms are adjusting for it with the

help of Thai National Bank of Thailand.

The US dollar itself is undervalued versus the rest of the World.......also favoring the US Trade balance.

[Dancealot]

Euro, Sterling & Yankee $ all in bad shape but Money Folks think $ will last the course better.

Euro was a con from Day one, the damage done to Sterling by socialist government will take years, donkeys years to sort out probably need more QE but the US should get a grip.

They normally do.

john

[Dancealot]

Any answer to the real question? Rate is going up, which is good for me but then I wonder when it will stabilize? If I exchange USD from a rate like 30.50 and then 2 weeks later if rate become 31.00 I will feel like a dumbass. For small amount of money, it doesn't matter but imagine you buy a condo / house and transfer some hefty amount of USD from offshore!

Well buying a condo now and here will be a double whammy. Youpay a lot and can't even sell when you want.

My advice to anyone wanting to buy a condo here is DO NOT. Thereare much better way to lose your money and have fun too

I will buy a condo soon with the idea i will never resell it. I will own it and i will keep it and i will use it. I expect no future money in return, like marriage.

Unlike marriage after things go bad i will still have something to be happy about.

Kahlua

[Dancealot]

in other news this week, workers in Jiangyin, China, unveiled a 24K solid gold bull weighing one tonne.

[ClareQuilty]

Bad times = higher USD. Debt/deflation depression caused by neo-liberalism's inevitable crisis followed by foolhardy anti-Keynesian 'austerity' response guarantees collapse of confidence and accelerating downward spiral of economic activity, and a resultant flight to quality, and for all the talk about its uncompetitiveness and impoverished masses, the US is still going to be the 'last man standing' in Very Dark days.

[flying]

the US is still going to be the 'last man standing' in Very Dark days.

May be more accurate to say the world's reserve currency will be the last man standing.

Whether or not it is guaranteed that the USD will remain the WRC while likely.. is not guaranteed.

Edited September 21, 2011 by flying

[jonwilly]

Been romours for some time, now The Guardian is saying

US unleashes $400bn plan to save ailing economy

Last updated 10 minutes ago

Interest rates decision

Bank of England likely to follow suit with round of quantitative easing after eurozone debt crisis rattles markets

john

[cmsally]

Presumably that the ECB can now get their hands on more Dollars that should see an increase in dollar value. But it seems the Euro is in such a big mess there are some people who are wondering whether those dollars will ever get returned. In the short term I think it means an increase in US$ value at least for 3 months. But then I guess they have to pay it back after New Year. That should be interesting.

[ClareQuilty]

the US is still going to be the 'last man standing' in Very Dark days.

May be more accurate to say the world's reserve currency will be the last man standing.

Whether or not it is guaranteed that the USD will remain the WRC while likely.. is not guaranteed.

True. Though it is most when everything goes to Hades that one realizes how premature is the talk about the ascendency of China, or EU, or whmoever. Ironic I suppose given that the right-wing neo-liberal agenda which has destroyed us was imposed by the hegemon in the first place.

Edited September 22, 2011 by ClareQuilty

[Ricardo]

Abhisit told a reporter before the election when ask if the exchange rate would change, he answered, "I'm going to keep it around 30%". Was that the typical Abhisit lie? Or does he actually do not have any control over the exchange rate? So many lies have been on both sides it's hard to keep up with.

Since he was voted out almost three months ago, and this thread is discussing more-recent movements, I'd hazard a guess that the answer is your 3rd line, and that he doesn't have any control over the exchange-rate now.

Wonder what PM-Yingluck's answer, to the same question, would be ?

[vpi78]

I imagine they're discussing this on other TV forums -- the ones related to money, finance and business.

I've read several articles about this in the International Herald Tribune in the past week. My summary might not be precise, but this is what this non-economist got out of the articles: Basically, on Thursday, some European regulators loosened the rules on either how much and/or how long European banks can borrow U.S.D. I think some American regulators have also had a hand in this, too. Apparently, the European banks normally buy European gov't debts, but there is a lot of concern about certain European gov'ts defaulting on those debts and banks are interested in reducing their holdings of European debt. This rule change has created an increased demand for USD in world financial markets.

As an American, we're delighted, but also a little scared. Given the state of the American economy, the world is in pretty sad shape if everyone feels that American dollars are the best thing around.

O please the US is still a very safe currency to put your money. If it is so bad what would you suggest the chinese rimbe or the Indian rupee these to countries may be doing well but they are still light weights when it comes to the US market. Yes we have a few problems with debt but it will be sorted out and everyone will wonder what the big deal was all about. I think right now all of the hype, moaning and growning is more about politics and the fear the repukians are trying to create problems for Obama instead of solving them.

Also I think the weaker baht is a reflection of the finicial policies of the ptp and there growing spending spree especially the spending to come especially the rice program

Love your positive attitude but the reality is America is a nation in decline and once you are rolling forward its very hard to get into reverse gear. Thank GWB for his knee jerk reaction in invading another country and creating trillions of $'s debt and Republicans stonewalling any efforts the current administration tries to implement . 9.1% unemployment and the US produces very little the rest of the world wants. Poverty is rising and thousands of people have lost their jobs and houses. Is there any good news ? please tell us.And if anyone watched the Tea Party's, meet the Republican candidates for leader on CNN, you would be still cringing. If you wonder why the population of US expats in CM is increasing see above.

Priceless. I knew it would not be long for it to be "George Bush's fault."

[vpi78]

Any answer to the real question? Rate is going up, which is good for me but then I wonder when it will stabilize? If I exchange USD from a rate like 30.50 and then 2 weeks later if rate become 31.00 I will feel like a dumbass. For small amount of money, it doesn't matter but imagine you buy a condo / house and transfer some hefty amount of USD from offshore!

I remember when the rate was 45 baht to the dollar... Not long ago. My impression is that the rates are based on politics, ie, it was 45 when Thaksin was around, and immediately dropped once he was gone. And when General Prem had power, gas was 10 baht for many years, and the baht was 25 to the dollar

Gosh and I remember when gas in the US was 32 cents per gallon, coke/pepsi was 10 cents and the minimum wage $1.65 per hour.

Guess it is all "politics."

[vpi78]

Any answer to the real question? Rate is going up, which is good for me but then I wonder when it will stabilize? If I exchange USD from a rate like 30.50 and then 2 weeks later if rate become 31.00 I will feel like a dumbass. For small amount of money, it doesn't matter but imagine you buy a condo / house and transfer some hefty amount of USD from offshore!

Well buying a condo now and here will be a double whammy. Youpay a lot and can’t even sell when you want.

My advice to anyone wanting to buy a condo here is DO NOT. Thereare much better way to lose your money and have fun too

Extremely happy I ignored those that gave that advice in 2006 when I bought my condo in Bangkok.

Check back in 5 years and tell us what you advise again.

[CaptHaddock]

Any answer to the real question? Rate is going up, which is good for me but then I wonder when it will stabilize? If I exchange USD from a rate like 30.50 and then 2 weeks later if rate become 31.00 I will feel like a dumbass. For small amount of money, it doesn't matter but imagine you buy a condo / house and transfer some hefty amount of USD from offshore!

Feeling like a dumbass because an exchange rate move surprised you is an example of what behavioral finance people call "hindsight bias", or the belief, in hindsight, that you could and should have predicted the move. The fact is that the currency market, which has more information than you, priced it earlier and then repriced it later based on additional information. The market is certainly not always correct and sometimes you might be able to spot a mispricing (such as houses in 2005, Thai baht in 1997, etc.) and exploit the inefficiency. But most of the time the market is and you can't.

The current high USD rate is due to the possibility of a financial crisis in Europe and/or a global recession. The same flight to safety occurred in 2008. Not hard to understand, but hard to predict when the threat of crisis will recede and the dollar will resume its long-term decline becaue the US trade deficit will dominate the value of the dollar. In the short term European fecklessness about saving the euro and the banks will cause the threat of financial disaster to increase. Therefore, the flight to dollar safety will likely continue for a while.

[KRS1]

The Thai government made many promises and has to get the money from somewhere so they will borrow it, hence the reason for the weakening baht. This is the only way to get exports to increase so factories can pay the wage increase set by the government. The USD will also be replaced as the 'world ' currency, it has already been agreed upon.

[chiang mai]

Phew, that's a relief then!

[Naam]

The Thai Government also enlisted the services of Captain Jean-Luc Picard and the spaceship Enterprise to speed up rice exports. The Enterprise will establish an hourly shuttle between Nakhon Nowhere and Duluth, Minnesota carrying each time 4,000,000 bags of rice which will be sold against goldpressed Latinum. The precious metal will converted into coins and distributed at a ratio 10:1 among poor Thais and Farangs.

[Gonzo the Face]

Whatever the reason, I'm not complaining. My records indicate a strengthening of the $ v B of 1.18 baht since the 1st of this month.

G

[Pib]

The Thai government made many promises and has to get the money from somewhere so they will borrow it, hence the reason for the weakening baht. This is the only way to get exports to increase so factories can pay the wage increase set by the government. The USD will also be replaced as the 'world ' currency, it has already been agreed upon.

I must have missed that memo....when was that final decision made and by who? Anyway, what did they decide to replace the USD with? Euro, Pound, Yen, Yuan, Baht, etc? Must have been "one" winner, right?

Or are you talking a continued slow shift to a weighted basket of certain currencies like the USD, Euro, Pound, Yen which most central banks seem to already accumulate their reserves in, to include gold.

Edited September 26, 2011 by Pib

[IMA_FARANG]

Saw something about this a couple of days ago.

The gist of it was that in the short term investurs were pulling money from the Eurozone currencies and placing it in the U.S. dollars at least until they saw what happened in the EU regarding possible default of Greek debt.

Not that the U.S. dollar is that well regarded, but right now it appears to be a safer place to be than in EU currency.

Of course, that can change quickly ...but right now the dollar seems less risky than Euros.