Bank Of Thailand Prints More Notes To Meet Rising Demand During Flood Crisis

[webfact]

Central Bank Prints More Notes to Meet Rising Demand During Flood Crisis

The Bank of Thailand has assured that there is enough cash in circulation to meet rising demand during the flood crisis.

Bank of Thailand Assistant Governor for the Banknote Management Group Nopporn Pramojaney said the central bank has prepared banknotes for an anticipated increase in demand during the flood crisis.

He believes people are spending more money on flood-related expenses.

Nopporn further stated that the central bank's note printing offices will operate as usual and will also work beyond regular operating hours.

He added banknote circulation remains uninterrupted as cash will be kept at the central bank's offices outside areas affected by floods.

The assistant governor noted that commercial banks are fully aware that they have to prepare adequate cash to meet demand and keep updated on the situation.

Most bank branches and ATM machines in flood-hit areas have been closed.

Nopporn said the central bank also has a plan for commercial banks to help one another such as borrowing cash between nearby branches in the event of a shortage.

-- Tan Network 2011-10-18

[peterdk]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

[vediovis]

Good, my money is in Euro, the Baht is too strong, I will be happy to see it going down a little bit.

Europe, UK and US print money like crazy, I don't see why Thailand shouldn't do it a little bit to adjust their currency with the Euro, Pound and USD. It will help the country to export as well.

[gummy]

Looking at the TV they need to print more notes anyway given the number of submerged ATMs.

[MaxYakov]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

All excellent questions, but I can only address your final question: They could locate and dry out all the submerged/waterlogged notes as a workaround to printing more. Makes me wonder, if anyone has ever burgled a submerged ATM. Where's my Scuba gear, anyway?

[garrfeild]

Good, my money is in Euro, the Baht is too strong, I will be happy to see it going down a little bit.

Europe, UK and US print money like crazy, I don't see why Thailand shouldn't do it a little bit to adjust their currency with the Euro, Pound and USD. It will help the country to export as well.

With respect Thailand is not Dealing with the same problems as the UK, Europe and USA. As for helping export more, Now that the factories have been submerged by the floods I doubt exports will be on track anytime soon. Besides the current government is spending enough money (without seeing an increase in revenues) on populist schemes, a classic example is the fuel subsidy/rebate, where after spending what the previuos government collected in fuel duty, this government will sell bonds to finance payments to the gas stations. Their answer, print more money.

It might take a few months but the baht will get weaker.

[givenall]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

I guess not a good time to send $$$ to Thailand wait a while till $$$ is higher

[Guest]

I wonder if the baht will get weaker. During last year's mini-revolution the baht just kept getting stronger. There are greater forces at work here than just market forces.

[BusyBee123]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

Only printing to replace exisiting notes which have been flooded.

[wallswod]

Logic says inflation = devaluation of the Baht, but logic was wrong at every major turn in the last few years re the baht. My bet, keep logic out of it. In amazing Thailand, sorry, Mirricle Thailand, this is just another reason to print more cash and get the CB to strengthen the baht.

Anyway, what do I care

I should ask the local Soi bag.

[janverbeem]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

I guess not a good time to send $$$ to Thailand wait a while till $$$ is higher

Hope you have stocked up yet,as waiting for the $$ to get higher could take some time.

[cardholder]

Logic says inflation = devaluation of the Baht, but logic was wrong at every major turn in the last few years re the baht. My bet, keep logic out of it. In amazing Thailand, sorry, Mirricle Thailand, this is just another reason to print more cash and get the CB to strengthen the baht.

Anyway, what do I care

I should ask the local Soi bag.

BoT can buy more Dollars and increase the existing surplus !

[naboo]

This will have no effect on the Thai Baht. This is simply printing more physical bank notes. The money is already there electronically electronically. The 800,000 Baht you retirees store in a bank isn't kept in the safe in notes, its just a number on the screen of a computer.

[Beetlejuice]

Good, my money is in Euro, the Baht is too strong, I will be happy to see it going down a little bit.

Europe, UK and US print money like crazy, I don't see why Thailand shouldn't do it a little bit to adjust their currency with the Euro, Pound and USD. It will help the country to export as well.

Same for me.

Let them print mountains of bahts until they have notes coming out of their ears.

Keep rolling, rolling rolling, keep those presses moving, rawcash.

If this has the desired affect, than keep your eyes peeled on those bank exchange rates guys, because soon maybe the time to, buy, buy, buy those bahts.

[Time Traveller]

I doubt the baht will move at all since this appears to be just an attempt to provide notes for people to use who would normally use electronic means of payment e.g. atm machines for transfer of money/bill payments, but now cannot. Such printing of notes will not devalue the currency because the amount of notes in circulation is much less than M3/M4 money supply (includes bank deposits). In any case, central banks don’t need to print money to devalue, if that is their purpose - read about "quantitative easing"). Secondly there will be a need to replace some of the currency that was lost/damaged in the floods. The BoT does not currently have a quantitative easing policy so thinking that this is a campaign to devalue the baht and hoping that it will, is just wishful thinking. Sorry everybody

Edited October 18, 2011 by Time Traveller

[gk10002000]

Print more notes? And do what, fill sandbags with them?

[softgeorge]

Printing more bank notes ?

Wouldnt that devalue the currency ?

Or is it just me, that thinks you can only have bank notes, to what the world perceives you having in gold.

Otherwise the currency will be devaluated and inflation increase ?

Or is there a way around this ?

I don't think they are printing more notes than they have in assets. This is not Zimbawe

[Bagwan]

A thing that puzzles me is that in a country where Money is No. 1 peeps takes so little care of it. Many screw up banknotes and put them in their pocket rather than use a wallet. One of my quaint practices is to occasionally empty my wallet, sponge the banknotes and then iron them flat. They come out looking nearly new. Laundering the loot makes it easier to handle. However I find that brand new notes are a pain as all too often they stick together and when accounting for my spending often find I'm a grand down.

[softgeorge]

A thing that puzzles me is that in a country where Money is No. 1 peeps takes so little care of it. Many screw up banknotes and put them in their pocket rather than use a wallet. One of my quaint practices is to occasionally empty my wallet, sponge the banknotes and then iron them flat. They come out looking nearly new. Laundering the loot makes it easier to handle. However I find that brand new notes are a pain as all too often they stick together and when accounting for my spending often find I'm a grand down.

washing and ironing your money is a tad excessive compulsive.

[nocturn]

A thing that puzzles me is that in a country where Money is No. 1 peeps takes so little care of it. Many screw up banknotes and put them in their pocket rather than use a wallet. One of my quaint practices is to occasionally empty my wallet, sponge the banknotes and then iron them flat. They come out looking nearly new. Laundering the loot makes it easier to handle. However I find that brand new notes are a pain as all too often they stick together and when accounting for my spending often find I'm a grand down.

yes, as opposed tho all those other countries worldwide where money is considered irrelavent.

you have serious issues, you dont use banks or both.

[AleG]

I doubt the baht will move at all since this appears to be just an attempt to provide notes for people to use who would normally use electronic means of payment e.g. atm machines for transfer of money/bill payments, but now cannot. Such printing of notes will not devalue the currency because the amount of notes in circulation is much less than M3/M4 money supply (includes bank deposits). In any case, central banks don’t need to print money to devalue, if that is their purpose - read about "quantitative easing"). Secondly there will be a need to replace some of the currency that was lost/damaged in the floods. The BoT does not currently have a quantitative easing policy so thinking that this is a campaign to devalue the baht and hoping that it will, is just wishful thinking. Sorry everybody

I agree that if the money is printed to make tangible funds available in other forms then it shouldn't have an effect in inflation, as said if the paper money is backed by assets no harm done.

However the part I underlined is when things can get fishy, how is that going to be evaluated? I mean, taking your stinking soggy bills to the bank and getting new crispy ones seems fair, but how do you go about the lost currency?

[midas]

A thing that puzzles me is that in a country where Money is No. 1 peeps takes so little care of it. Many screw up banknotes and put them in their pocket rather than use a wallet. One of my quaint practices is to occasionally empty my wallet, sponge the banknotes and then iron them flat. They come out looking nearly new. Laundering the loot makes it easier to handle. However I find that brand new notes are a pain as all too often they stick together and when accounting for my spending often find I'm a grand down.

wow ! you must have such a busy schedule

[OZEMADE]

A thing that puzzles me is that in a country where Money is No. 1 peeps takes so little care of it. Many screw up banknotes and put them in their pocket rather than use a wallet. One of my quaint practices is to occasionally empty my wallet, sponge the banknotes and then iron them flat. They come out looking nearly new. Laundering the loot makes it easier to handle. However I find that brand new notes are a pain as all too often they stick together and when accounting for my spending often find I'm a grand down.

washing and ironing your money is a tad excessive compulsive.

Yes I reckon it is too.

I am going to send some OZ cash over now as the rate has gone above B31.50 to the OZ $. I can then get new ones out of the bank without washing and ironing them.

[elgato]

Great - more bank notes "floating" around should help!