Thai Govt Eases Calls For Action On Baht

[webfact]

Govt eases calls for action on baht
Suphannee Pootpisut,
Sarun Kijvasin
The Nation


file photo

Kittiratt says measures may no longer be needed as currency's rise loses steam

BANGKOK: -- The government sees no need for measures to curb the baht's appreciation as the Thai currency's upward trend is showing signs of losing steam, Finance Minister Kittiratt Na-Ranong said yesterday after a meeting with senior officials, including the central bank governor.

Kittiratt, who is also deputy prime minister, said the meeting participants agreed that the baht's increase was not too rapid when compared to other currencies in the region. He said the Bank of Thailand (BOT) had prepared measures to curb the baht's appreciation, although the meeting saw no need for them at the moment.

Prime Minister Yingluck Shinawatra and BOT Governor Prasarn Trairatvorakul also attended the meeting.

The BOT's Monetary Policy Committee will hold its monthly meeting to report on the country's economic conditions and the situation regarding the baht on Tuesday. Members Dr Ampon Kitiampon, Narongchai Akrasanee, Siri Ganjareondee and Aswin Kongsiri will attend.

Meanwhile, the Finance Ministry will stop issuing inflation-linked bonds as they have been attractive among foreign investors, putting added pressure on the appreciating baht.

However, the ministry has found no traces of currency speculation.

Areepong Bhoocha-oom, Finance permanent secretary, said that of the Bt50-billion bonds issued, about Bt40 billion were inflation-linked bonds, and that foreign investors had bought up 60 per cent of these.

The ministry said it would stop issuing new inflation-linked bonds as they could cause an influx of foreign capital and cause the baht to appreciate further.

Areepong said the issuing of bonds was necessary for the government's budget deficit, though the Finance Ministry might adjust conditions on the purchase of government bonds or block a set number for domestic retail investors.

Over the past three or four months, most of the foreign capital has flowed into the bond market, though no signs of currency speculation has been seen - proving that Thailand is an attractive country for investment.

However, Areepong said "operators have risk-mitigation strategies" for the currency's volatility and that the prime minister had expressed concerns about small-sized operators and planned relief measures for them.

The Finance Ministry and other related agencies have been closely monitoring the baht, which weakened yesterday.

The baht depreciated 1.1 per cent yesterday to 29.43 to the US dollar as of 3.02pm on concerns that policymakers will intervene in the currency market and introduce measures to slow the pace of gains that hurt exports, according to Bloomberg.

To discourage capital inflow, which has been causing baht appreciation, several other measures have been introduced, including the collection of taxes or fees that require the Finance Ministry's approval, an anonymous source from the Bank of Thailand said.

Meanwhile, bankers yesterday called on the government to be careful in taking measures to curb the baht's appreciation.

Krissada Lamsam, vice president of KBank, said a lack of measures would boost the baht's value further, though he expected foreign capital to continue flowing in from countries where there is an economic recession.


-- The Nation 2013-04-27

[chooka]

Whilst Thailand is happy to see the baht grow stronger and stronger Australia is working overtime to try and bring the strong aisssie dollar down. Tourism, local manufacturing and exports are suffering. The car industry is in danger of going under and job loses are on the rise. It is putting a strain on the government purses. The strong dollar is good for aussies travelling abroad and expats but back home it is not so rosie.

Edited April 26, 2013 by chooka

[dcutman]

Ok, so the Baht dropped 1% and it immediately appreciated 1/2% from that low. Now just because there was a "blip" in Forex trading does not mean a trend has started and this news will not help.

[Robby nz]

Over the past three or four months, most of the foreign capital has flowed into the bond market

So it would seem that in the last 3 or 4 months it is the Govt bonds that are holding the Baht up.

Areepong said the issuing of bonds was necessary for the government's budget deficit

But the bonds are needed to hide the budget deficit.

However, the ministry has found no traces of currency speculation.

Among unauthorized speculators.

[laurentbkk]

well at least some people made huge amount of money with this bath/USD issue.

[KimoMax]

Let me know when they want to sell us that Bridge in Brooklin or San Francisco............

Nothing here to see. Move Along. No currency Manipulation going on here.

[Thai at Heart]

Is everyone happy that the market more or less sorted this out itself, with the USA reporting good GDP numbers, or would they rather kittirat managing it?

[roxnadz]

So we finished the pump and are at the dump now?

Yeah, I'll wait and see on that one.

[Locationthailand]

"... Prime Minister Yingluck Shinawatra and BOT Governor Prasarn Trairatvorakul also attended the meeting."

An unavoidable interruption to shopping. And I wonder what the PM learned at the meeting?

[JetsetBkk]

"... Prime Minister Yingluck Shinawatra and BOT Governor Prasarn Trairatvorakul also attended the meeting."

An unavoidable interruption to shopping. And I wonder what the PM learned at the meeting?

She learned lots of new words and phrases, such as monetary policy, economic conditions, inflation-linked bonds, currency speculation, foreign capital, budget deficit, bond market, investment, volatility, etc

- all good stuff for her to Google later.

[wackysleet]

So which of the previous PMs were fully conversant with all aspects of government finance and did not need to have advice from specialists, oh silly me, you must all be talking about Abhisit and Suthep lol.

[webfact]

Finance Ministry eyes Monetary Police Committee’s action on baht
By Digital Media

BANGKOK, April 27 – The Bank of Thailand (BoT) was instructed to discuss with the Monetary Policy Committee (MPC) measures to slow down foreign capital inflow and tame the surging Thai baht, according to the deputy prime minister and finance minister.

Kittiratt Na-Ranong said the BoT governor and secretary general of the National Economic and Social Development Board (NESDB) agreed that the movement of Thai currency at Bt29 to the dollar was unrealistic and could jeopardise Thailand’s exports and economy.

The BoT and NESDB chiefs held a meeting with the deputy prime minister on Friday.

The baht will continue appreciating if no action is taken on the 2.75% policy interest rate and foreign capital inflow, Mr Kittirat said.

He said the BoT governor was told to discuss with MPC members on the advantages, disadvantages and risks of reducing the policy interest rate.

He quoted the BoT as saying that some measures have been prepared but not executed in the wake of improving market sentiment.

The Thai baht weakened Friday to close at Bt29.36/38 to the dollar after a few rounds of adjustment during the day.

Prime Minister Yingluck Shinawatra is scheduled to hold a meeting with the finance minister and BoT governor regarding the monetary situation and possible measures next week. (MCOT online news)


-- TNA 2013-04-27

[JetsetBkk]

Monetary Police Committee

Whoops!

[Baerboxer]

So which of the previous PMs were fully conversant with all aspects of government finance and did not need to have advice from specialists, oh silly me, you must all be talking about Abhisit and Suthep lol.

Difference is previous PM's had a clue what the specialists were talking about. Now, if you want to know the prices of Burberry, LV or Chanel accessories I'm sure the current PM could help you.

[MaxLee]

Finance Ministry eyes Monetary Police Committee’s action to create another Mafia on baht

Or in other words, he's trying to find a way in order to make make Pheu Thai's assets (ripped off tax-SCAM-money), their theirs theirs, and his own assets, his, his his....

Edited April 27, 2013 by MaxLee

[Naam]

Ok, so the Baht dropped 1% and it immediately appreciated 1/2% from that low. Now just because there was a "blip" in Forex trading does not mean a trend has started and this news will not help.

-Baht dropped 3.3% vs GBP

-Baht dropped 2.6% vs USD

-€UR the Baht dropped 1.6% vs €UR

friday market closing, appreciation not applicable

a "blip" in forex trading does not last 2½ trading days (Asia opening april 24, NY close april 26).

[Naam]

Whilst Thailand is happy to see the baht grow stronger and stronger Australia is working overtime to try and bring the strong aisssie dollar down. Tourism, local manufacturing and exports are suffering. The car industry is in danger of going under and job loses are on the rise. It is putting a strain on the government purses. The strong dollar is good for aussies travelling abroad and expats but back home it is not so rosie.

what makes you think "Thailand is happy to see the Baht grow stronger and stronger?" did you conduct a poll or interviewed "Thailand"?

[wackysleet]

So which of the previous PMs were fully conversant with all aspects of government finance and did not need to have advice from specialists, oh silly me, you must all be talking about Abhisit and Suthep lol.

Difference is previous PM's had a clue what the specialists were talking about. Now, if you want to know the prices of Burberry, LV or Chanel accessories I'm sure the current PM could help you.

Baerboxer.

So can we take it that you know all the previous MPs and ex PMs or are you just spouting off with your dislike of Yingluck with your personal knowledge of her so called lack of capabilities.

But then of course the Democrats were certainly on the ball with the countries finances when they were in power. Sounds like another lemming following the crowd of know it all posters.

[hellodolly]

So which of the previous PMs were fully conversant with all aspects of government finance and did not need to have advice from specialists, oh silly me, you must all be talking about Abhisit and Suthep lol.

The question should be which of the former PMs and finance ministers admitted lying to the public was OK? Also which of the former PMs and finance ministers were responsible for the need to cover the governments deficit spending to cover populist promises that caused inflation loss of jobs and are currently trying to put forth another scheme that will take 50 years to pay off. When pressed for details on what they plan to do with the money they come up with vague promises.

[Thai at Heart]

Whilst Thailand is happy to see the baht grow stronger and stronger Australia is working overtime to try and bring the strong aisssie dollar down. Tourism, local manufacturing and exports are suffering. The car industry is in danger of going under and job loses are on the rise. It is putting a strain on the government purses. The strong dollar is good for aussies travelling abroad and expats but back home it is not so rosie.

what makes you think "Thailand is happy to see the Baht grow stronger and stronger?" did you conduct a poll or interviewed "Thailand"?

For every winner there is a loser, I haven't heard the weak currency rich country argument in the long term.

[hellodolly]

Whilst Thailand is happy to see the baht grow stronger and stronger Australia is working overtime to try and bring the strong aisssie dollar down. Tourism, local manufacturing and exports are suffering. The car industry is in danger of going under and job loses are on the rise. It is putting a strain on the government purses. The strong dollar is good for aussies travelling abroad and expats but back home it is not so rosie.

what makes you think "Thailand is happy to see the Baht grow stronger and stronger?" did you conduct a poll or interviewed "Thailand"?

It is amazing the results of polls taken here in Thailand. Particularly the ones late at night in the bars.

[wackysleet]

hello dolly.

So I will take your post as factual and admit that it must only be the PTP that lie about such matters or are indeed vague about their aims for Thailand but please remind me for clarities sake why the Democrats lost the election in the 90s over the great land givaway scam of which I'm sure your fully conversant with and perhaps are able to shed some light on the Palm oil debacle in the course of bringing me up to speed with Thai politics of course, simply because I view all Thai politicians as one and the same, corrupt.

[britinthai]

So which of the previous PMs were fully conversant with all aspects of government finance and did not need to have advice from specialists, oh silly me, you must all be talking about Abhisit and Suthep lol.

The question should be which of the former PMs and finance ministers admitted lying to the public was OK? Also which of the former PMs and finance ministers were responsible for the need to cover the governments deficit spending to cover populist promises that caused inflation loss of jobs and are currently trying to put forth another scheme that will take 50 years to pay off. When pressed for details on what they plan to do with the money they come up with vague promises.

Sounds like your statement is indeed the way every Government worldwide acts.

[webfact]

DPM/Finance Minister: No plan to control inflow of capital, bright prospects for Thai economy in 2013 if no further baht appreciation /MCOT

[MaxYakov]

The most terrifying words in the English language are: I'm from the government and I'm here to help. - Ronald Reagan

Does this apply to the Thai language as well?

[Naam]

Whilst Thailand is happy to see the baht grow stronger and stronger Australia is working overtime to try and bring the strong aisssie dollar down. Tourism, local manufacturing and exports are suffering. The car industry is in danger of going under and job loses are on the rise. It is putting a strain on the government purses. The strong dollar is good for aussies travelling abroad and expats but back home it is not so rosie.

what makes you think "Thailand is happy to see the Baht grow stronger and stronger?" did you conduct a poll or interviewed "Thailand"?

For every winner there is a loser, I haven't heard the weak currency rich country argument in the long term.

in my [not so] humble view a rather ignorant uninformed opinion. but that's besides the point. my question was "what makes you think "Thailand is happy to see the Baht grow stronger and stronger?"

Edited April 27, 2013 by Naam

[Oink]

Don't suppose it has occured to them that sooner or later the investors will want to sell these bonds and get there money back plus interest!

[Robby nz]

Could it be that the Minister of White Lies got a bit of a bollacking in private at these meetings and told to pull his head in by those who know what they are talking about?

To discourage capital inflow, which has been causing baht appreciation, several other measures have been introduced, including the collection of taxes or fees that require the Finance Ministry's approval, an anonymous source from the Bank of Thailand said.

Missed that bit before, looks like the Finance Ministry has not been collecting Taxes and Fees or not approving the collection of same.

If this is correct then who are these 'investors' who have been getting away without paying their dues?

And will they now be investigated and forced to pay back tax and fees?

[hellodolly]

hello dolly.

So I will take your post as factual and admit that it must only be the PTP that lie about such matters or are indeed vague about their aims for Thailand but please remind me for clarities sake why the Democrats lost the election in the 90s over the great land givaway scam of which I'm sure your fully conversant with and perhaps are able to shed some light on the Palm oil debacle in the course of bringing me up to speed with Thai politics of course, simply because I view all Thai politicians as one and the same, corrupt.

Well I was speaking about today. Not years ago. Your avoidance of today pretty well tells me you agree with me.

It is easy to go back in history and look at the final results and point fingers. The answer is probably because they did not put forth populist promises,

Edited April 27, 2013 by hellodolly

[wackysleet]

hello dolly.

So I will take your post as factual and admit that it must only be the PTP that lie about such matters or are indeed vague about their aims for Thailand but please remind me for clarities sake why the Democrats lost the election in the 90s over the great land givaway scam of which I'm sure your fully conversant with and perhaps are able to shed some light on the Palm oil debacle in the course of bringing me up to speed with Thai politics of course, simply because I view all Thai politicians as one and the same, corrupt.

Well I was speaking about today. Not years ago. Your avoidance of today pretty well tells me you agree with me.

hello dolly.

Obviously your speaking about today seeing as the Democrats lost the last election.

There is certainly no avoidance on my part whatsoever in answering a question, on the contrary, I stated quite clearly my opinion on all parties as being totally corrupt you are avoiding the issue by saying your concerned about the present day when the same people are still major players in the Democrat party and were equally involved in scams although of a lower scale than one particular person.