The Strong Baht, Who Are The Winners?

[Bikkii]

Look in the end it really is not doomsday like many seem to think. I earn Thai baht and have to pay off a credit card in Australia every month. After doing my figures I really don't save that much. Yes I am more than happy with the strong baht (would love for it to higher). At the end of the day if it means some of those who have retired or don't work have to forgo two beers a week to even it out, then hey it aint that bad is it?

[hopdafru]

I'm retired here, and not concerned with any of the above. Next

I'm retired here as well, and I don't know how you can say it doesn't concern you unless all your retirement money is tied up in Thai baht you are going to be affected by the strong baht. When I transferred money from Australia to here a month or so ago I was getting 32 baht to the dollar, now it's 29. Doesn't mean I'm panicking, but it does mean I'll hold off a while before transferring any more from Oz.

My retirement income is 4x what I need to live the way I want. How strong would the baht have to get for me to be concerned?

@kennedy,

From your previous comment I had figured you must be getting much more than you [currently] need - which you now confirmed.

5 years ago I felt the same way until I recently realized that combining inflation and exchange rates, my purchasing power had gone down 50% - much quicker than I had originally anticipated.

I don't know the details of your financials (or how old you are), but if you don't feel a bit concerned about the 2 issues above, perhaps you could share with us how you plan to maintain your enviable situation over the years to come?

[a10ams]

Aye you're right........

The real winners are the people who intend to visit overseas locations or to purchase overseas. If you're not planning either then it makes not a jot of difference, it's only a paper exercise.

I know a teacher who is getting paid 25,000 baht a month. Not a month goes past where isn't skint at the end of it. He used to say that he earned £500.00 a month, and last week he announced he now get's paid £568.00 per month.

Ehm, no!! You get paid 25,000 baht a month.

Eh, but it's equivalent to £568.00.

Ehm, but you're not going back to the UK and you never have any money anyway so <deleted> is the difference?

Aye but if I had money it would £568.00 now, not £500.00

Eh, but you never have any money so you're just gibbering a lot of nonsense.

Now I'm not, I now get paid £568.00 a month, so I'm right

No you're not, you get paid 25,000 baht a month that you will spend in the Thai economy cos you can't afford a flight home anyway.

But it's the same as £568.00!!!

Oh <deleted> and you wonder why we bash teachers.

That should be cast in stone somewhere for all the nitwits like 'theblether's mate.

I get paid in $ every month, so I earn less Baht, but as a Brit, I earn more pounds. Which matters not a jot as most of my bills are in Baht.

Anyway, I hear the second biggest team in Scotland eventually won their one horse race last weekend.

'Mon the Gers.

[Suradit69]

Aye you're right........

The real winners are the people who intend to visit overseas locations or to purchase overseas. If you're not planning either then it makes not a jot of difference, it's only a paper exercise.

I know a teacher who is getting paid 25,000 baht a month. Not a month goes past where isn't skint at the end of it. He used to say that he earned £500.00 a month, and last week he announced he now get's paid £568.00 per month.

Ehm, no!! You get paid 25,000 baht a month.

Eh, but it's equivalent to £568.00.

Ehm, but you're not going back to the UK and you never have any money anyway so <deleted> is the difference?

Aye but if I had money it would £568.00 now, not £500.00

Eh, but you never have any money so you're just gibbering a lot of nonsense.

Now I'm not, I now get paid £568.00 a month, so I'm right

No you're not, you get paid 25,000 baht a month that you will spend in the Thai economy cos you can't afford a flight home anyway.

But it's the same as £568.00!!!

Oh <deleted> and you wonder why we bash teachers.

"Oh <deleted> and you wonder why we bash teachers."

Since coming to Thailand I have on several occasions changed light bulbs and have even been known to plug in my electric kettle. That doesn't make me an electrician.

Someone who comes to Thailand from any western country and accepts employment paying Baht 25,000 per month is not a teacher, no matter what you think he's getting up to ( or, if he's an alleged English teacher ..." no matter to what you think he's getting up").

[Joe Mamma]

I think this strong baht is good for anyone who is fully invested in living here. If you have long term plans to raise a child here ,retire here, have a business here and live here full time. If you have a true commitment to be a Thai resident, then anything that shows a residents country is growing and maturing and exceeding other countries of former fame is good. This is opportunity to grow with the country, by investing in and believing in. The side benefits is the vast importing of goods from your former country and other goods not available now. If you are a part timer or still holding onto the benefits from the former home country,you could be in deep shit in the future. Your choice mate.

[Aussie Paul]

The severe ructions in Thai society caused by an event that is as inevitable as taxes and can only happen soon will see the baht tumble. Most countries' currencies do not fare well during times of overt or covert civil war.

[MickGC]

It obviously help to those who have millions and billions baht (remember the case where thieves steal 700 million baht from some Thai official's house as in cash? And they said there were more money).

Thaksin's buddies can convert their money to USD / EUR and take it out of country anytime they want.

Congratulations. You are the first poster to mention Taksin and we are up to post #20 already. Must be some sort of record on TV.

[innerspace]

Pleased to announce there are some winners. All my income and savings in baht. All my debts in uk and decreasing without paying it off.

Going for a holiday to uk soon which should be cheap too.

[HerbalEd]

German companies......we import a lot more than ever before from Germany

And what about German companies who buy goods from Thailand?

[hellstens]

I think 50-60% off all retired Farang who live here, do it of economic and health reason, Maybe it's hard to live on your pension in your country, same me.

But the problem now is, if this go on, you maybe don't have the 800000 in the bank or 65000/mount income because the Bath is to strong,

Then how you do? some one have a idea?........well, just a thought.

[h90]

German companies......we import a lot more than ever before from Germany

And what about German companies who buy goods from Thailand?

They will buy less and try to source it locally

[roamer]

There are some very exclusive parts of Belgravia, London where many of the buyers looking for property are Thai, this is not "normal" rich but mega rich, many of the houses are 15 million plus(sterling), and that is before they have the basements dug out for cinemas or swimming pools. Maybe like the rich Chinese they are seeing the writing on the wall and shifting their assets while the going is good.

[AnotherOneAmerican]

Baht dropped this week, against almost everything.

Back to 29 to USD, 30 to AUD, 45 to UKP.

Edited April 25, 2013 by AnotherOneAmerican

[ExpatJ]

I was lucky enough to shift a large chunk of my US$ savings into Thai baht 3 years ago- money now in Thai stocks. Im paid in dollars and my wife is paid in thai , she now pays for major expenses here in bangkok (rent, education , nanny etc) while my $s go into a bank outside Thailand (when we first came i was paying for these costs changing dollars to baht) . So we benefited and hedged.

Edited April 25, 2013 by ExpatJ

[bkk_mike]

Swings and roundabouts...

I'm paid in HKD so my income doesn't go quite as far, but the house is paid off and we have some baht income from renting out a flat we own.

Surely imported cars should start being cheaper soon though...

[mrtoad]

I am paid in Baht and have Thai Bonds - so when I go back to UK on trips etc, the current strenght of the Baht is good - also as I send money back to the UK each month, the current value is good as well. However, whilst I am fairly comfortable on my earnings, i feel pain If from time to time when I may draw money down from the UK, I see the weakness of the pound. I think the main thing, for anyone who is intending to be here for any lenght of time, is that they diversify their monies - to a degree I wish I had shifted more of my £s a few years back into othe currencies suchas Baht and Sing Dollar, but I didn't. I'm not going to whine about it, it is, what it is. The people who are hit the hardest will be those that are on fixed incomes from the UK, and have little else in the bank. In the end, it swings in round abouts, I think all from teh UK have got to get used to the £ being below 50. I think the first time I visited Thailand in 91 it was 39 or nearabouts, when I moved here in 2005 it was 72.

[NeverSure]

I think 50-60% off all retired Farang who live here, do it of economic and health reason, Maybe it's hard to live on your pension in your country, same me.

But the problem now is, if this go on, you maybe don't have the 800000 in the bank or 65000/mount income because the Bath is to strong,

Then how you do? some one have a idea?........well, just a thought.

I don't understand. If one puts 800,000 baht in a Thai bank account to leave for a retirement visa, how is it not always 800,000 baht?

I do feel for those who scrape to leave that much in a Thai bank, or who don't have the 65,000 pm income. That can happen to some who moved earlier when the baht was weaker.

The baht won't stay this strong. I would say hold on if you can.

[chiang mai]

At the risk of appearing to shadow you NS (which I do not intend to do), the answer to your question is that many people here accumulate the 800K baht and then spend it on living expenses throughout the year, trying to find a subsequent 800K is often very difficult and I believe that is what the poster you responded to is alluding to.

[NeverSure]

It benefits all the wealthy Thais quietly shipping their money offshore, in anticipation of a forthcoming event.

After the disaster, they will all quietly ship their money back in, making a packet.

(This does assume Thailand is essentially intact after the events)

Well, this is the best post here regarding "who benefits" All those who denigrate it truly don't understand the graft or the international dealings of the elite in Thailand. One of the impediments to getting a consensus on attempting to lower the baht to help exporters is that elite group of wealthy who's wealth has increased internationally due to a strong baht. They also don't mind the high interest rates, which would have to lower in any attempt to weaken the baht.

This is the first thread on this forum where I can recall anyone doubting the corruption, or the benefiting from the system, by the elite. Certainly it is the first time I have seen anything close to someone doubting that things are manipulated for the elite, and to h3ll with the average Thai, much less any expat.

[Naam]

It benefits all the wealthy Thais quietly shipping their money offshore, in anticipation of a forthcoming event.

After the disaster, they will all quietly ship their money back in, making a packet.

(This does assume Thailand is essentially intact after the events)

Well, this is the best post here regarding "who benefits" All those who denigrate it truly don't understand the graft or the international dealings of the elite in Thailand. One of the impediments to getting a consensus on attempting to lower the baht to help exporters is that elite group of wealthy who's wealth has increased internationally due to a strong baht. They also don't mind the high interest rates, which would have to lower in any attempt to weaken the baht.

This is the first thread on this forum where I can recall anyone doubting the corruption, or the benefiting from the system, by the elite. Certainly it is the first time I have seen anything close to someone doubting that things are manipulated for the elite, and to h3ll with the average Thai, much less any expat.

i think both of you see a conspiracy where there is none for the simple reason the age old question "cui bono?" (who benefits?) does not apply because the Baht strengthening over a period of years.

in 1997 the situation was completely different. one can see the Baht diverging from its peg of USD/THB 25 for just a few trading days and then the big weakening which lasted till nearly end jan 1998 (55.50). the fact "stronger than the peg" indicates clearly a manipulation whereas the increase of the BoT's reserves during the last five years are evidence of efforts to reign in the strengthening.

i suggest that you present facts instead of insinuations fetched out of thin air.

[NeverSure]

It benefits all the wealthy Thais quietly shipping their money offshore, in anticipation of a forthcoming event.

After the disaster, they will all quietly ship their money back in, making a packet.

(This does assume Thailand is essentially intact after the events)

Well, this is the best post here regarding "who benefits" All those who denigrate it truly don't understand the graft or the international dealings of the elite in Thailand. One of the impediments to getting a consensus on attempting to lower the baht to help exporters is that elite group of wealthy who's wealth has increased internationally due to a strong baht. They also don't mind the high interest rates, which would have to lower in any attempt to weaken the baht.

This is the first thread on this forum where I can recall anyone doubting the corruption, or the benefiting from the system, by the elite. Certainly it is the first time I have seen anything close to someone doubting that things are manipulated for the elite, and to h3ll with the average Thai, much less any expat.

i think both of you see a conspiracy where there is none for the simple reason the age old question "cui bono?" (who benefits?) does not apply because the Baht strengthening over a period of years.

in 1997 the situation was completely different. one can see the Baht diverging from its peg of USD/THB 25 for just a few trading days and then the big weakening which lasted till nearly end jan 1998 (55.50). the fact "stronger than the peg" indicates clearly a manipulation whereas the increase of the BoT's reserves during the last five years are evidence of efforts to reign in the strengthening.

i suggest that you present facts instead of insinuations fetched out of thin air.

I suggest you sober up before posting. I mentioned nothing of 1997 and I don't think this is possibly even remotely, connected. Before that earlier crash, as you know, the baht was pegged to the dollar. So why compare it to now when it is floating?

Thailand will never have enough power or enough reserves to compete with Western powers who are deliberately devaluing their currencies to compete in world trade markets.

Thailand could lower interest rates as the Western powers have done to make buying the baht less attractive and I ask myself why they haven't when exports are obviously hurting. Of course it's a balancing act because lowering interest rates can be inflationary while not lowering them can destroy an export economy with a high currency value. Balance, balance.

But who benefits by high interest rates and a strong baht today? Not the workers or the manufacturers or the other exporters. Not the common man who borrows for a house or a car.

The wealthy, the banksters, the internationally savvy - all benefit from a strong baht and high interest rates. Those with tons of baht in the Thai banks benefit from a strong currency and high interest rates. Lenders benefit.

Your chart and your mention of 1997 are silly.

[yoshiwara]

The winners it appears are those who swapped out of their baht some days ago.

He who hesitates and all that....

[mccw]

Aye you're right........

The real winners are the people who intend to visit overseas locations or to purchase overseas. If you're not planning either then it makes not a jot of difference, it's only a paper exercise.

I know a teacher who is getting paid 25,000 baht a month. Not a month goes past where isn't skint at the end of it. He used to say that he earned £500.00 a month, and last week he announced he now get's paid £568.00 per month.

Ehm, no!! You get paid 25,000 baht a month.

Eh, but it's equivalent to £568.00.

Ehm, but you're not going back to the UK and you never have any money anyway so <deleted> is the difference?

Aye but if I had money it would £568.00 now, not £500.00

Eh, but you never have any money so you're just gibbering a lot of nonsense.

Now I'm not, I now get paid £568.00 a month, so I'm right

No you're not, you get paid 25,000 baht a month that you will spend in the Thai economy cos you can't afford a flight home anyway.

But it's the same as £568.00!!!

Oh <deleted> and you wonder why we bash teachers.

I bet you had this little chat sat at a bar counter and the teachers not real skint but is mostly because he spends all his spare cash on booze