Rapidly Stronger Baht Worries Thai Central Bank Governor, Finance Minister

[stoli]

With the value of the baht increasing over the last couple of months vs the US dollar, many things are going to happen. Just drive down Sukumvit tomorrow and notice how the price of gas has increased. Oil is sold in US dollars to the world, not in baht. Gas has gone up. Imports will go down for the importers, but will they pass it on? Of course not! Exporters are going to be killed because the customer they are selling to will have to raise his price. This will help to cause inflation in the rest of the world, while this world's economy is already fragile.

The investors in the US are not investing in the US becuase of low interest rates. They will keep buying bonds in Asia & Thailand where they can get a better return, and Thailand is going to have to find a place to put all of this money. Maybe for "rice storage facilities"? Thailand loves the money coming in, and if they get addicted to it, the whole country is in trouble. The exporters in Thailand have got to use their power to stabilize the baht before it kills all of their exports to overseas companies.

[stoli]

Remember that a stronger Baht should mean imported items such as petrol should become cheaper but only if the market is not corrupted by profiteering extreme right wing capitalists who are wrecking out world. Gone are the long lost days of decent fair capitalism, where we all got a fairer share of the cake, I am sorry to say. 99% of us just get poorer whilst the rich cream in more and more and we let it happen !!!!!!! Personally would rather live under extreme Socialism in this sic world and I hate that extreme too. We really truly all need decent fair capitalism and socialism working together with proper centre based Governments of the people who are not slaves to any paymaster lobbyists.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon, I hope. Doesn't bother me as I have only regular pension income and very little cash capital thankfully. I do not want the risk of holding cash either at home or in the bank thank you very much, sure you can make money trading in it but you can and often do also lose money too. Just remember for every winner there has to be a loser and no matter how careful you are that could be you.

You have to remember that theoretically if a currency becomes stronger then that leads to falling inflation and maybe even deflation in an honest non corrupt society. If it does not do that then somebody is cheating at all of our expense of course, which is very likely it seems.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon

...sure you can make money trading in it but you can and often do also lose money too

So which is it? Sell baht because you think it is too high, or be wise and not trade currencies.

You are wrong in thinking that gas will go down in price. Just the opposite. In the world market, oil is sold at US dollar prices, meaning that oil costs will go up for Thailand, and raise gas prices accordingly.

[kennalder]

Remember that a stronger Baht should mean imported items such as petrol should become cheaper but only if the market is not corrupted by profiteering extreme right wing capitalists who are wrecking out world. Gone are the long lost days of decent fair capitalism, where we all got a fairer share of the cake, I am sorry to say. 99% of us just get poorer whilst the rich cream in more and more and we let it happen !!!!!!! Personally would rather live under extreme Socialism in this sic world and I hate that extreme too. We really truly all need decent fair capitalism and socialism working together with proper centre based Governments of the people who are not slaves to any paymaster lobbyists.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon, I hope. Doesn't bother me as I have only regular pension income and very little cash capital thankfully. I do not want the risk of holding cash either at home or in the bank thank you very much, sure you can make money trading in it but you can and often do also lose money too. Just remember for every winner there has to be a loser and no matter how careful you are that could be you.

You have to remember that theoretically if a currency becomes stronger then that leads to falling inflation and maybe even deflation in an honest non corrupt society. If it does not do that then somebody is cheating at all of our expense of course, which is very likely it seems.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon

...sure you can make money trading in it but you can and often do also lose money too

So which is it? Sell baht because you think it is too high, or be wise and not trade currencies.

You are wrong in thinking that gas will go down in price. Just the opposite. In the world market, oil is sold at US dollar prices, meaning that oil costs will go up for Thailand, and raise gas prices accordingly.

Stoli, please don't include me in something unless I actually made a comment on it. I made no reference to the price of oil or gas. If I had made a comment on the price of gas at the pump in Thailand it would be along these lines. As the US$ depreciates the Thai baht will buy more US$, so at first glance you would expect the price at the pump to go down, but as the US$ depreciates the market drives up the price of oil to compensate, so the net effect is probably next to zero.

[rayw]

Remember that a stronger Baht should mean imported items such as petrol should become cheaper but only if the market is not corrupted by profiteering extreme right wing capitalists who are wrecking out world. Gone are the long lost days of decent fair capitalism, where we all got a fairer share of the cake, I am sorry to say. 99% of us just get poorer whilst the rich cream in more and more and we let it happen !!!!!!! Personally would rather live under extreme Socialism in this sic world and I hate that extreme too. We really truly all need decent fair capitalism and socialism working together with proper centre based Governments of the people who are not slaves to any paymaster lobbyists.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon, I hope. Doesn't bother me as I have only regular pension income and very little cash capital thankfully. I do not want the risk of holding cash either at home or in the bank thank you very much, sure you can make money trading in it but you can and often do also lose money too. Just remember for every winner there has to be a loser and no matter how careful you are that could be you.

You have to remember that theoretically if a currency becomes stronger then that leads to falling inflation and maybe even deflation in an honest non corrupt society. If it does not do that then somebody is cheating at all of our expense of course, which is very likely it seems.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon

...sure you can make money trading in it but you can and often do also lose money too

So which is it? Sell baht because you think it is too high, or be wise and not trade currencies.

That is entirely up to you. Personally I am not a gambler so would not trade currencies, and also have no spare cash assets to trade with anyway. If I was a gambler though, as many folk are, and had the cash available, then I think I would personally sell Baht now for US$ probably and buy them back when the Baht returns to its more normal value as I feel it will. Just my feelings but don't blame me if you follow it and it goes tits up. As I said it is all gambling like the stock market which I also do not gamble in, so you win some and lose some but good advise is surely, as my old Dad used to say, to never gamble more than you can afford to lose

That is why I am not a rich man but neither am I broke either. We all live by the lifestyles that turns us on the most, and nothing wrong with that as we are all different thank goodness. .

[rayw]

Remember that a stronger Baht should mean imported items such as petrol should become cheaper but only if the market is not corrupted by profiteering extreme right wing capitalists who are wrecking out world. Gone are the long lost days of decent fair capitalism, where we all got a fairer share of the cake, I am sorry to say. 99% of us just get poorer whilst the rich cream in more and more and we let it happen !!!!!!! Personally would rather live under extreme Socialism in this sic world and I hate that extreme too. We really truly all need decent fair capitalism and socialism working together with proper centre based Governments of the people who are not slaves to any paymaster lobbyists.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon, I hope. Doesn't bother me as I have only regular pension income and very little cash capital thankfully. I do not want the risk of holding cash either at home or in the bank thank you very much, sure you can make money trading in it but you can and often do also lose money too. Just remember for every winner there has to be a loser and no matter how careful you are that could be you.

You have to remember that theoretically if a currency becomes stronger then that leads to falling inflation and maybe even deflation in an honest non corrupt society. If it does not do that then somebody is cheating at all of our expense of course, which is very likely it seems.

Time I think to sell any excess Baht you have while it is strong and buy them back when the Baht moves back to its proper value soon

...sure you can make money trading in it but you can and often do also lose money too

So which is it? Sell baht because you think it is too high, or be wise and not trade currencies.

You are wrong in thinking that gas will go down in price. Just the opposite. In the world market, oil is sold at US dollar prices, meaning that oil costs will go up for Thailand, and raise gas prices accordingly.

How does that work then as obviously if the Baht gets stronger against the US$ then each Baht buys more dollars and thus more oil, so the price per litre of petrol should go down as far as Thai Bahts are concerned and which affects us expats here. Cannot see where my synopsis is flawed on that score to be honest ????????? If the US$ actually and in reality further weakens against the world's major currencies of course then the price per barrel will go up, but in this current case it is not a weakening dollar but a strengthening Baht. So that means Thailand's imports in effect become cheaper but conversely Thai exports become more expensive and less competitive in the world markets obviously, and obviously why the Thai Government are talking of curtailing the Baht from strengthening too much, and thus why I feel the rate will come back to the more normal values we have seen over the past few years.

[mccw]

Regarding moves of x and y currency is stronger or weaker than against each other, the point is often missed that when they are all devaluing together its not that relative to each other they might maintain parity but that the currency values against the commodities, food, energy etc will erode; so although one currency now apears to be historically strong, intact it is still weakening against "real" things at differing rates and that is why inflation continues unabated even in the stronger currency nations. That and the supply side facts of post peak rescourses almost across every sector!

[watgate]

I most definitely do not like how I have lost more then 3% of the value of my money since I have been wintering in Thailand. If the baht doesn't go back over 30 to the US dollar pretty soon, I will have to look at other places to winter because I am sure the Thai government is involved in the manipulation of their currency. Also, I will be cutting back on my purchases here in Thailand for the remainder of my stay to make up for the diminished loss of purchasing power as a way to compensate for the bahts strength.

[Naam]

I most definitely do not like how I have lost more then 3% of the value of my money since I have been wintering in Thailand. If the baht doesn't go back over 30 to the US dollar pretty soon, I will have to look at other places to winter because I am sure the Thai government is involved in the manipulation of their currency. Also, I will be cutting back on my purchases here in Thailand for the remainder of my stay to make up for the diminished loss of purchasing power as a way to compensate for the bahts strength.

your threats should do the trick and cause a devaluation of the Thai Baht

[Pormax]

I most definitely do not like how I have lost more then 3% of the value of my money since I have been wintering in Thailand. If the baht doesn't go back over 30 to the US dollar pretty soon, I will have to look at other places to winter because I am sure the Thai government is involved in the manipulation of their currency. Also, I will be cutting back on my purchases here in Thailand for the remainder of my stay to make up for the diminished loss of purchasing power as a way to compensate for the bahts strength.

your threats should do the trick and cause a devaluation of the Thai Baht

But 'watgate' is correct. All the tourists will be exchanging their holiday money for less Baht and therefore there will be less purchases. Some time in the future this will have an effect on the tourist shops, restaurants etc who rely on this revenue. Whether the Thai government will care about this is another thing as they still take the same amount of foreign currency.

We will have to wait and see but it is a worry for those who are pai, or have pensions in Euro, Dollar or British pounds that they have to transfer to be able to have money in Thailand to live.

[Naam]

I most definitely do not like how I have lost more then 3% of the value of my money since I have been wintering in Thailand. If the baht doesn't go back over 30 to the US dollar pretty soon, I will have to look at other places to winter because I am sure the Thai government is involved in the manipulation of their currency. Also, I will be cutting back on my purchases here in Thailand for the remainder of my stay to make up for the diminished loss of purchasing power as a way to compensate for the bahts strength.

your threats should do the trick and cause a devaluation of the Thai Baht

But 'watgate' is correct. All the tourists will be exchanging their holiday money for less Baht and therefore there will be less purchases. Some time in the future this will have an effect on the tourist shops, restaurants etc who rely on this revenue. Whether the Thai government will care about this is another thing as they still take the same amount of foreign currency.

We will have to wait and see but it is a worry for those who are pai, or have pensions in Euro, Dollar or British pounds that they have to transfer to be able to have money in Thailand to live.

i am hearing the story "strong Baht must devalue or else" since six full years. result =

[stoli]

I guess the only solution is to increase your income. Understandably not every one is qualified to go out there and get a job nor may have the interest in teaching which is about the only thing a foreigner can do here. The fact is, everybody here knows how to use the Internet and that in my experience is the best and most reliable source of income. Think outside the box, being dependent on a check coming from somewhere else is the same as welfare in my opinion even if you earned it in the past. For us expats to live here, we need to become more self sufficient and create a bumper to where these things don't affect us. Just talking about it won't solve anything, doing something about it will.

To live off of your own money is "welfare"? End of discussion. You are nuts!

[Naam]

I guess the only solution is to increase your income. Understandably not every one is qualified to go out there and get a job nor may have the interest in teaching which is about the only thing a foreigner can do here. The fact is, everybody here knows how to use the Internet and that in my experience is the best and most reliable source of income. Think outside the box, being dependent on a check coming from somewhere else is the same as welfare in my opinion even if you earned it in the past. For us expats to live here, we need to become more self sufficient and create a bumper to where these things don't affect us. Just talking about it won't solve anything, doing something about it will.

To live off of your own money is "welfare"? End of discussion. You are nuts!

there... there... Stoli. how would gro&^$danie know that you and i are "gentlemen of own means"?

[metisdead]

Off topic posts have been removed.

[Sandman77]

Can someone explain meme,who is the winner of a bad exchange rate?

Why the Taiwanese canidian and Australian dollar go down together with us dollar,?

The the will come , that federal reserve connect the gold price to the dollar! I will stay in Thailand , no matter what will come, the inflation in eu is much higher then loose of value!

Maybe in 10 year Asia have same price then Europe because of bad exchange rates!

In the statistic I only read that millions of tourists visit thai but no one talk about how much the spend,and that one not come again with whole family espasaly it's to expensive in total

Sent from my iPhone using ThaiVisa app

[jcnbkk]

Ever since I've been coming here when the baht was in the higher 30's to the dollar for convenience sake I've alway mentally converted it at 30b to the $ and had a cushion. Now that I saw the other day it went to 29.63 it broke a real mental barrier for me and was a wake up call, but to do what?

I live here now but income from the US. ouch

Edited January 22, 2013 by jcnbkk

[mccw]

Ever since I've been coming here when the baht was in the higher 30's to the dollar for convenience sake I've alway mentally converted it at 30b to the $ and had a cushion. Now that I saw the other day it went to 29.63 it broke a real mental barrier for me and was a wake up call, but to do what?

I live here now but income from the US. ouch

Try to save some and invest it in a cheap Thai property to give you some bht income?