Whats Wrong With The Strong Baht?

[danone]

I wonder if Thaksin uses the Central Bank to buy Baht offshore.

Its simple not logical anymore how the Baht strengthens.

With a few millions one can influence that currency already.

My guess is there are heavy interventions going on to keep the Baht stable - to give the impression of stability amidst turmoil.

Any other guesses why the Baht strengthens that dramatically?

[Kerryd]

I wonder if Thaksin uses the Central Bank to buy Baht offshore.

Its simple not logical anymore how the Baht strengthens.

With a few millions one can influence that currency already.

My guess is there are heavy interventions going on to keep the Baht stable - to give the impression of stability amidst turmoil.

Any other guesses why the Baht strengthens that dramatically?

It may have to do more with your native currency weakening against the baht. I just checked the exchange rate vs the Cdn $, and it's down a smidgen (but still up 2 baht to the $ over last year).

Over the last couple of weeks, it's gone up 25-35 satang, and dropped 25-35 satang (vs the Canuck Buck).

[Jai Dee]

Have you read this thread?

[barryofthailand]

I think the stronger baht is direct relatioship to the American dollar weakening. Happens every year this time. The dollar will weaken to 38 baht for one dollar. Then as the summer months come upon us rainy season in Thailand the dollar will strengthen and the baht weaken once more. A vicous cycle.

Barry

[TRIPxCORE]

Besides the political situation going on in LOS right now, the economy is actually doing quite well. Most other SEA nations economies are also doing well. Its almost like the "Asian Tiger" thing all over again. Malaysia is the best of the bunch right now. Singapore is doing really well and so is Vietnam. Thailand has been reporting impressive GDP numbers lately and the economy is growing. Asian countries, unless one is really having its own problems (Philippines), tend to ride each others coattails. SO if one of them starts doing really well, the rest tend to follow. Japan and China, two huge economies in the Asia/Pacific region, are also doing very well and that will help SEA nations to a lesser extent too.

[Rinrada]

How many ex Thai millionaires do yousee in the streets flogging sarnies at the moment in comparision to post 97?....after their business empires bombed.....betcha not a lot.

In fact following our last trip I got the impression that the guys with the real/concealed dosh were all back shooting pool again after getting their sequestred Mercs out of hock..and business is ....dont say.....LOS is doing ...OK......wee baby pussy cat again rather than a tigger

[Old Man River]

I wonder if Thaksin uses the Central Bank to buy Baht offshore.

Its simple not logical anymore how the Baht strengthens.

With a few millions one can influence that currency already.

My guess is there are heavy interventions going on to keep the Baht stable - to give the impression of stability amidst turmoil.

Any other guesses why the Baht strengthens that dramatically?

I read in one of the newspapers that the strengthening THB is directly related to Temasek's buying of Baht to pay for SHIN. Politics aside, this makes sense as it is normal to spread large THB purchases out so as not to distabilize the local currency market. FX traders in local banks know how much the Baht market can take in any one day, and advise accordingly.