Former Finance Minister warns Govt against lowering Thai baht

BANGKOK, 27 March 2012 (NNT) - Former Finance Minister Korn Chatikavanij has indicated that the national economy would be affected if the baht value is lowered by the government in favor of Thai exports.

Mr. Korn, also a Democrat MP, warned the government that lowering the value of the Thai currency would do more harm than good to the overall economy of the country. The move, spearheaded by incumbent Finance Minister Kittiratt Na Ranong, is seen by Mr. Korn as beyond the responsibility of the Finance Ministry. He advised that it must be carried out with extra caution.

The former Finance Minister also said the impact of volatile interest rate fluctuations has prompted product prices to rise, adding that if the Thai baht becomes cheaper in comparison to other currencies, it would have a negative impact on the purchase of fuel from overseas. Mr. Korn thus urged Mr. Kittiratt to pay more attention to the cost of living for Thai people than anything else at this moment.

-- NNT 2012-03-27

Ex-finance Minister Warns of Weaker Baht Set-back

BANGKOK: -- The Opposition is worried about the finance minister's plan to push for a weaker baht, saying the weaker baht may have a serious impact on the Thai economy.

Democrat party-list MP Korn Chatikavanij, who's also a former finance minister, commented on Finance Minister Kittirat Na Ranong's plan to push for a weaker baht to promote export.

Korn said such a comment from the finance minister could have a serious impact on the Thai economy.

He pointed out that the Finance Ministry has no jurisdiction over the movement of the Thai baht or capital flow.

In fact, both monetary and exchange rate policies fall under the Bank of Thailand's control.

Korn questioned if Kittirat's comment could be designed to influence the policy direction of the central bank.

Korn pointed out that the cheaper baht will make it more expensive for Thailand to import energy.

The former finance minister is urging for Kittirat to address the rising cost of living as his top priority.

Korn said so far the comment by Kittirat has not have any impact on the capital market.

-- Tan Network 2012-03-27

Finance Ministry might not have the authority to control baht exchange rate but Kittirat is an authority to himself. When did he ever listened to anyone? Last time a Finance Minister disagreed with Kittirat he was promptly sacked.

In fact the entire country now is kept hostage to Kittirat's economic vision - high wages, high prices, cheap baht, whatever he dreams up next, he holds all the reigns and overrides everyone else's opinions.

low baht mean cheaper retirement for some

Well Thaksin always did favour a weak Baht. It always brings in a massive influx of foreign dollars/investments. Now where the hell can we get a good currency pairing on the baht? Oh for the days of 70 baht to the 1GBP again.

Ask him how much US dollars he has in his assets

Ask him how much US dollars he has in his assets

I guess quite a few given he declared 870 million baht in August against Kittiratts 59 million though probably has a bit more now!

http://www.nationmultimedia.com/new/national/Plodprasop-is-richest-minister-30166401.html

Well Thaksin always did favour a weak Baht. It always brings in a massive influx of foreign dollars/investments. Now where the hell can we get a good currency pairing on the baht? Oh for the days of 70 baht to the 1GBP again.

it is may be that the bath is going down any ways because of high debts that the government is bring on the Thai people and these so called finance minsters are just saving face by pretending that they plan this

low baht mean cheaper retirement for some

It means that they will get more Baht for their retirement money,with they will need to buy the more expensive basic things.

Baht devaluation sure would help "my" economy that starts off by being paid in dollars.

One is led to speculate why such comments are being made, perhaps all is not well with the Thai economy due to past and future fiscal matters.

I like Gentleman Jim would indeed enjoy those heady days of 70 baht to the pound.,

No doubt our friends from the colonies would like to see something like 55 baht to the dollar too.

Mr. Korn, also a Democrat MP, warned the government that lowering the value of the Thai currency would do more harm than good to the overall economy of the country.

There you have it folks! Now you know why the Baht has gone from those 60-70 Baht per GBP and those days when you got lots more dollars to the low it is now.

It has been the policy of the people in power to increase the value of the Baht so the powerful elite benefit e.g. they get more bang for THEIR money.

In fact, this article proves exchange rate policy has nothing to do with trying to help the tourist sector or those people/businesses that export!

All those threads about how Thailand is a strong economy and how the West has become weak are now proven to be rubbish. In short, the elite WANT a strong Baht FULL STOP.

Edited March 27, 201214 yr by AngryParent

One is led to speculate why such comments are being made, perhaps all is not well with the Thai economy due to past and future fiscal matters.

I like Gentleman Jim would indeed enjoy those heady days of 70 baht to the pound.,

No doubt our friends from the colonies would like to see something like 55 baht to the dollar too.

One is led to speculate why such comments are being made, perhaps all is not well with the Thai economy due to past and future fiscal matters.

I like Gentleman Jim would indeed enjoy those heady days of 70 baht to the pound.,

No doubt our friends from the colonies would like to see something like 55 baht to the dollar too.

You don't want to make accusations that Thailand would be in the same economic crisis as all the rest of the world are currently in,do you.

Its only the rich that are in a crisis due to a currency devaluation.

The poor will always be kept poor .

Bring it on. More baht for my farang money!

If they devalue the baht, they may be able to sell their B20,000/tonne rice.

low baht mean cheaper retirement for some

It means that they will get more Baht for their retirement money,with they will need to buy the more expensive basic things.

not sure how inflation will hold up but thailand has a long list of controlled price items like cooking oil, flour etc:)

pipo1000 #13

You don't want to make accusations that Thailand would be in the same economic crisis as all the rest of the world are currently in,do you.

One needs to remember that there are. ''Lies dammed lies and statistics.'', Numbers can be and are controlled by those in power and those involved in the financial world with a little help form their friends.

Bernie Madoff did rather well over years did he not due to his connections and no doubt incetitives paid to those in positions of power,

​One can walk almost anywhere in Thailand and get a physical massage, no doubt a financial figures massage is as easy to obtain if needed..

Edited March 28, 201214 yr by siampolee

Mr. Korn, also a Democrat MP, warned the government that lowering the value of the Thai currency would do more harm than good to the overall economy of the country.

There you have it folks! Now you know why the Baht has gone from those 60-70 Baht per GBP and those days when you got lots more dollars to the low it is now.

It has been the policy of the people in power to increase the value of the Baht so the powerful elite benefit e.g. they get more bang for THEIR money.

In fact, this article proves exchange rate policy has nothing to do with trying to help the tourist sector or those people/businesses that export!

All those threads about how Thailand is a strong economy and how the West has become weak are now proven to be rubbish. In short, the elite WANT a strong Baht FULL STOP.

I presume the fact that the heady days of 70 baht to the pound were in the middle of the Asian crisis and that today the USD and EU and GBP are embroiled in an enormous fiscal mess with zero growth whilst the Thai economy continues to bumble along at 3 to 5% growth no problem has anything to do with it?

Oh the heady days of 25 baht to the USD, seems that at 30, the baht is undervalued.

As a rider to my post above and the standard of ethics practiced by the worlds banking organisations ( robber barons) leave much to be desired. The Greeks are now openly admitting that the entry of Greece into the E.U. was assisted by the deceitful underhand manipulation of the financial figures by the assorted world banking organisations (robber barons) to disguise the true content of the Greek financial situation and indeed its long term prospects.

We now see the resultant price that is being extorted from Greece and its people and also the other E.U. partners for this wonderful assistance.

Who is to say openly such a situation may well exist in other sovereign states as part of the long term strategy plan by the robber barons to control yet more countries and their finances.

High interest rates cheap investment prospects, a captive market and a debt bonded nation of people, indeed a mouth watering prospect for all the little piggies trying to get their snouts in the money trough.

Money , Money , Money, It's The Rich Mans Tool.

Edited March 28, 201214 yr by siampolee

As a rider to my post above and the standard of ethics practiced by the worlds banking organisations ( robber barons) leave much to be desired. The Greeks are now openly admitting that the entry of Greece into the E.U. was assisted by the deceitful underhand manipulation of the financial figures by the assorted world banking organisations (robber barons) to disguise the true content of the Greek financial situation and indeed its long term prospects.

We now see the resultant price that is being extorted from Greece and its people and also the other E.U. partners for this wonderful assistance.

Who is to say openly such a situation may well exist in other sovereign states as part of the long term strategy plan by the robber barons to control yet more countries and their finances.

High interest rates cheap investment prospects, a captive market and a debt bonded nation of people, indeed a mouth watering prospect for all the little piggies trying to get their snouts in the money trough.

Money , Money , Money, It's The Rich Mans Tool.

I seem to remember Goldman had the grubby little hands all over that event too.

so who's got a pile of US Dollars in the closet that they can't shift because questions may be asked lol

look out below

If they devalue the baht, they may be able to sell their B20,000/tonne rice.

They don't have to devalue the baht in order to achieve that, if they reduce the price per tonne then out it goes.

Mr. Korn, also a Democrat MP, warned the government that lowering the value of the Thai currency would do more harm than good to the overall economy of the country.

There you have it folks! Now you know why the Baht has gone from those 60-70 Baht per GBP and those days when you got lots more dollars to the low it is now.

It has been the policy of the people in power to increase the value of the Baht so the powerful elite benefit e.g. they get more bang for THEIR money.

In fact, this article proves exchange rate policy has nothing to do with trying to help the tourist sector or those people/businesses that export!

All those threads about how Thailand is a strong economy and how the West has become weak are now proven to be rubbish. In short, the elite WANT a strong Baht FULL STOP.

Can't agree more.

Only powerful elite with hard currency benefits.

Pooe people suffer as usual.

Mr. Korn, also a Democrat MP, warned the government that lowering the value of the Thai currency would do more harm than good to the overall economy of the country.

There you have it folks! Now you know why the Baht has gone from those 60-70 Baht per GBP and those days when you got lots more dollars to the low it is now.

It has been the policy of the people in power to increase the value of the Baht so the powerful elite benefit e.g. they get more bang for THEIR money.

In fact, this article proves exchange rate policy has nothing to do with trying to help the tourist sector or those people/businesses that export!

All those threads about how Thailand is a strong economy and how the West has become weak are now proven to be rubbish. In short, the elite WANT a strong Baht FULL STOP.

Can't agree more.

Only powerful elite with hard currency benefits.

Pooe people suffer as usual.

Anyone want petrol to get any more expensive?

Finance Ministry might not have the authority to control baht exchange rate but Kittirat is an authority to himself. When did he ever listened to anyone? Last time a Finance Minister disagreed with Kittirat he was promptly sacked.

In fact the entire country now is kept hostage to Kittirat's economic vision - high wages, high prices, cheap baht, whatever he dreams up next, he holds all the reigns and overrides everyone else's opinions.

Since this proposed devaluation of the baht has now been published it will not take place in early course, because as a result of this knowledge national and international financial activities will take place in order to reach financial advantages, and that is not to the benefit of the country that intents to devalue its currency.

State currency devaluation should be carried out as a sudden surprise and not after publication, nevertheless, the top political elite of the country are of course aware of it in advance and thus are in a position to take the obvious financial devaluation advantages.

low baht mean cheaper retirement for some

About time to, this is well over due, they have been artificially supporting the Baht for too long.

Well Thaksin always did favour a weak Baht. It always brings in a massive influx of foreign dollars/investments. Now where the hell can we get a good currency pairing on the baht? Oh for the days of 70 baht to the 1GBP again.

7 years ago when I arrived on my retirement it was up to 75 baht per pound. It was lies, all lies, I was conned!!!!

The heady days of THB70+ to 1GBP was in the main due to the strength of Sterling and not the weakness of the Baht. Sterling and the USD have both dropped considerably whereas the Baht has only moderately strengthened. Having a weak currency over the past few years is seen as a major advantage and the UK was very happy to see Sterling drop and actively encouraged it. Currencies that have maintain their actual value or even strengthened have been at a disadvantage to currencies that have moved in the opposite direction and exports are a major consideration. Just follow the War of Words between the USA and China of the alledged controlled weakness of the Yuen. Vietnam devalued to assist exports and for no other economic reason. Regarding the opposition and ex Thai Finance Minister saying that a weak Baht would be bad for Thailand, well to coin a well known phrase, "He would say that wouldn't he?". Most opposition parties worldwide just disagrees on principle to any in power governments position and pray that they will not be successful. A moderately weaker Baht would be good for Thailand, helping exports and the inflow of finace and new businesses, providing it is controlled and not too fast. Many Farangs would also see the benefit by way of a salary increase. Good news all around.

It is what Greece can only dream of doing, but for the blessed Euro. I am not so sure it is a bad idea in the long term and think the Baht is currently overvalued, only because the money men are crapping themselves over the £,$ and Euro.

Pros.

1. In this current economic climate people will only shell of for an air ticket if they can get it back in Thailand by getting cheaper prices, which at present they can't, so they stay home.

2. Us farangs would spend more baht, probably more in £/$/Euro too with bargain prices around.

3. Thai products would be cheaper and rice farmers would get a price and actually make a profit.

Cons

1. The only negative side would be imports, which have a limited effect on most including the poor. They could use some of the extra revenue to keep the price of diesel down to 32baht.

I am sure I have skipped over a few things, but without being selfish (okay including being selfish) I think it would be good.