Yingluck On Rapidly Appreciating Baht: Don't Panic

[philw]

Yingluck On Rapidly Appreciating Baht: Don't Panic

Rather than panic, the appreciating baht coupled with fantastic incomes is cause for sheer jubilation!

PM Yingluck vows to raise income per person to over THB 500,000/year within 14 years

BANGKOK, 24 January 2013 (NNT) - Prime Minister Yingluck Shinawatra has clarified with heads of all state departments and provincial governors the government’s key strategic policies to drastically develop the country.

PM Yingluck, on Thursday, announced the four strategies designed to help bring Thailand forward while getting ready for the ASEAN Economic Community in 2015.

The first is the boosting of competitiveness to help turn Thailand from a low-income country into a moderate income one and the second is the bridging of gaps for equality in society.

The third strategy is the economic growth promotion, driven by a need for better quality of life and the sense of environmental friendliness. The last strategy focuses on a balanced development of the bureaucratic system.

The Premier said that the government has also worked out the budget allocation to go in line with these strategies, while urging all state offices to integrate their work plans with these strategies.

She added that the government is ambitious to make the country achieve an annual economic growth rate of 5-6% and to boost per capita income to 544,213 baht within 2027.

-- NNT 2013-01-24

All noble aims, as I am sure you would agree, chai mai ??

[OzMick]

Not such a bad thing when you are moving big slabs of cash offshore.

No mention of whether the Thai Reserve Bank is involved in currency fluctuation modulating (or exacerbation for that matter).

Question: Does the government have any sway over the Royal Bank of Thailand? I don't THINK that it does but I'm sure that I will be corrected by people in the know.

Surely it is a function of government to set monetary policy and of the bank to carry it out?

[Thai at Heart]

Not such a bad thing when you are moving big slabs of cash offshore.

No mention of whether the Thai Reserve Bank is involved in currency fluctuation modulating (or exacerbation for that matter).

Question: Does the government have any sway over the Royal Bank of Thailand? I don't THINK that it does but I'm sure that I will be corrected by people in the know.

Surely it is a function of government to set monetary policy and of the bank to carry it out?

Yes and no. Give them strategic targets and leave well alone would seem to be a better strategy, and those targets should be very difficult to change just for political gain.

Targeting inflation seems to be the most common.

[wolf5370]

Yingluck On Rapidly Appreciating Baht: Don't Panic

Rather than panic, the appreciating baht coupled with fantastic incomes is cause for sheer jubilation!

PM Yingluck vows to raise income per person to over THB 500,000/year within 14 years

BANGKOK, 24 January 2013 (NNT) - Prime Minister Yingluck Shinawatra has clarified with heads of all state departments and provincial governors the government’s key strategic policies to drastically develop the country.

PM Yingluck, on Thursday, announced the four strategies designed to help bring Thailand forward while getting ready for the ASEAN Economic Community in 2015.

The first is the boosting of competitiveness to help turn Thailand from a low-income country into a moderate income one and the second is the bridging of gaps for equality in society.

The third strategy is the economic growth promotion, driven by a need for better quality of life and the sense of environmental friendliness. The last strategy focuses on a balanced development of the bureaucratic system.

The Premier said that the government has also worked out the budget allocation to go in line with these strategies, while urging all state offices to integrate their work plans with these strategies.

She added that the government is ambitious to make the country achieve an annual economic growth rate of 5-6% and to boost per capita income to 544,213 baht within 2027.

-- NNT 2013-01-24

OK so this reads to me as - once we have finished decimating our global export market, we are going to decimate our global manufacturing base - or perhaps, once we have made it too expensive to buy Thai externally and boosted the Chinese economy more, we will push out foreign and domestic manufacturing by outpricing labour, and thanks to Asean, it can all go next door (or also to China)...but we will still have our forex reserves (until they run out to pay off the trillians of baht we are going to borrow over this time added to the trillains we are currently borrowing for unsellable rice, pointless laptops and crazy first time car loan aid) and tourism (if we can keep making everyone believe we are "Amazing" and in the hope that emerging neighbours don't eat that cake too).

[OzMick]

Not such a bad thing when you are moving big slabs of cash offshore.

No mention of whether the Thai Reserve Bank is involved in currency fluctuation modulating (or exacerbation for that matter).

Question: Does the government have any sway over the Royal Bank of Thailand? I don't THINK that it does but I'm sure that I will be corrected by people in the know.

Surely it is a function of government to set monetary policy and of the bank to carry it out?

Yes and no. Give them strategic targets and leave well alone would seem to be a better strategy, and those targets should be very difficult to change just for political gain.

Targeting inflation seems to be the most common.

"....those targets should be very difficult to change..." Why? Monetary policy can be used to boost or cool down the economy as required. Government also usually sets the desired trading range for the currency, and for the Reserve Bank of Oz this is very lucrative, selling the $AU when it is high, buying it when low.

My question is, has there been any attempt to push THB one way or the other, or even reduce fluctuations?

Edited January 25, 2013 by OzMick

[wolf5370]

<snip..too many quotes>

"....those targets should be very difficult to change..." Why? Monetary policy can be used to boost or cool down the economy as required. Government also usually sets the desired trading range for the currency, and for the Reserve Bank of Oz this is very lucrative, selling the $AU when it is high, buying it when low.

My question is, has there been any attempt to push THB one way or the other, or even reduce fluctuations?

Yes, by hording forex - but this is to try and keep it down. (I assume you mean just the current time - and not 1997, when there was a lot of things done, both that helped cause the crash and in attempts to alleviate/ease it).

[MAJIC]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

[wolf5370]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

Mr Mannering!!!!

[MAJIC]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

Mr Mannering!!!!

Now we are getting confused.

[Buchholz]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

Mr Mannering!!!!

here portrayed as Yingluck dealing with the unexploded bomb of the Thai economy.

..

[Robby nz]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

Mr Mannering!!!!

Captain Mannering to you, same rank as Chalerm.

[StefanBBK]

A strong baht is beneficial for any business / petson generating their income in baht.

it is bad for exports.

It is good if you want to move money out of the country, bad for foreign investment.

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

[Mosha]

Coming from the Shinawatra family who between Thaksin and the other family members have many Billions of bhat stashed away,of course there is no need for Panic,they are probably capitalising on the present exchange rate!

Who said don't Panic?

if you answered Monty Python? go to the top of the class.

It was actually Cpl Jones from Dad's Army.

On reflection,I think you could be right there!

Mr Mannering!!!!

It's Mainwaring

[GentlemanJim]

I can only imagine that this strengthening is artificial and that very soon Thaksin, by pure coincidence will but a billion dollars shorting the Thai baht and make 10-15 Billion when the Baht plummets. Lets face it, he has done it before!

[submaniac]

All I know is when someone like yingluck tells you not to panic is when you should start panicking.

[Pimay1]

I can only imagine that this strengthening is artificial and that very soon Thaksin, by pure coincidence will but a billion dollars shorting the Thai baht and make 10-15 Billion when the Baht plummets. Lets face it, he has done it before!

Yes. Don't panic because my big brother is not finished raping Thailand yet.

[Thai at Heart]

I can only imagine that this strengthening is artificial and that very soon Thaksin, by pure coincidence will but a billion dollars shorting the Thai baht and make 10-15 Billion when the Baht plummets. Lets face it, he has done it before!

Yes. Don't panic because my big brother is not finished raping Thailand yet.

So half the posters on here would cheer and, the so called crisis would disappear. The baht would be 33 to the usd, and then what?

[Skywalker69]

I can only imagine that this strengthening is artificial and that very soon Thaksin, by pure coincidence will but a billion dollars shorting the Thai baht and make 10-15 Billion when the Baht plummets. Lets face it, he has done it before!

Yes. Don't panic because my big brother is not finished raping Thailand yet.

Don´t rock the boat. Yingluck can get seasick.

[philw]

I can only imagine that this strengthening is artificial and that very soon Thaksin, by pure coincidence will but a billion dollars shorting the Thai baht and make 10-15 Billion when the Baht plummets. Lets face it, he has done it before!

I agree with you, and the same advantage will be taken by all Thai's who can, including the banks and those who have cash liquidity.............

The rest cannot be said.

[puck2]

There are many TV members not looking at the reasons for the strong baht. They blame Yingluck's wording, but misjudge the facts. I'm no friend of the PT and the Shinawatras, at all, and I'm not lucky with my weak €. But I try to be honest. The strong baht has many reasons. So look at it realising it's not a complete list.

The THB is strong because the home contries of the €, US$, GBP etc. produced the reasons.

• Rampant budget debts covered by the euphemism "dept reducing" without the necessary notation compared to last year. By this way the state debts grew and grew - what is living at the expense of others and a burden for the future
  
• The government's designed policy was to depreciate the own currency for better exports, e.g. US-policy (QE), with the result that the money went into other currencies like the THB instead of investing into a better infra structure.
  
• The banksters didn't want to learn from mistakes of the 2007/2008 financial crisis (unregulated markets)
  
• Increasing private debts
  
• consequences of previous mistakes like wars, taking Grece into the EU, to be focused on the (money) service industry ......
  
• Printing money has the same result - depreciation
  
• low interest in the falang countries. The higher interest or dividends here in Thailand are money-sexy. Of course, being sexy is not for ever. That's the danger for the THB.
  
• Opposite to the West, it would seem that Thailand has learnt by its own crisis of 1996/97 - foreign money reserves etc.
  

Nobody knows when the economic problems are solved in "the West". At least not tomorrow. Therefore Y. is on the right way to think about the BAHT-depreciation to ease the exports. There is already a policy of investing in foreign countries. Maybe Thailand is learning from the Chinese and Oil-Arabs and will buy shares of Asian and Western companies to acquire a higher technical standard?

Edited January 27, 2013 by puck2

[metisdead]

Off topic nonsense posts have been removed.

[rubl]

begin removed ...

Nobody knows when the economic problems are solved in "the West". At least not tomorrow. Therefore Y. is on the right way to think about the BAHT-depreciation to ease the exports. There is already a policy of investing in foreign countries. Maybe Thailand is learning from the Chinese and Oil-Arabs and will buy shares of Asian and Western companies to acquire a higher technical standard?

The article mentioned in the OP has nothing about Y. thinking about the Baht depreciation. It merely mentions not to panic, but forgets to mention the need to carry a towel at any time

"In a statement following a meeting with Finance Minister Kittiratt Na-Ranong, Bank of Thailand (BoT) governor Prasarn Trairatvorakul and National Economic and Social Development Board (NESDB) secretary-general Arkhom Tempitayapaisit, prime minister Yingluck Shinawatra said that the baht’s increasing value was the result of quantitative easing measures, taken by the American and Japanese governments.

“Don’t panic,” she said. “The government will take appropriate measures and keep the public informed.”

"