Baht Strengthens After No Measures Applied To Curb Currency Rise

[lemoncake]

http://www.forecast-chart.com/usd-thailand-baht.html

THB_USD_Hist_32_Yr_Rates.jpeg

Thanks for the graphical proof of what we've been saying. The newcomers here think the baht is overvalued. the baht has to appreciate another 25-30% to return it's historical average. It's tough to convince some like lemoncake that the dollar is still overvalued and needs to fall further since it's big runup.

and for those who think the baht is being manipulated, you're right. the baht would be much higher if they weren't doing their best to keep it down.

Sorry i must have missed when you tried to convince me,could you please tell me the exact post

My first post in this thread was in direct response to you.

Your post stated that USD is falling, is that your idea of convincing?

Furthermore your post was in response to my post that baht will eventually fall

[farang000999]

i used to get 16 baht to the OZ dollar and now its much better

bought bahts at 32

then put it in Thai funds

win win

Thailand says it wont interfere with the baht until it breaches 27 to the USD

If they lower the baht then exports improve - win win on the funds again

i hope

This may be true to a degree, but think of all the foriegn debt Thailand owes, strengthening of the baht helps in reducing its liabilities, albeit in the short term anyway. At the rate it is now, it is a win/lose ratio from whichever side you sit. Strengthens more, then time to do the sums.

please tell us more about the foreign debt Thailand owes and compare it with the external debt of other countries. it's not rocket science. here's a link:

http://www.indexmundi.com/map/?v=94

But do you also need to account for assets owned abroad? If Americans owe 12 trillion but have 22 trillion in foreign assets, it can't be that bad, can it?

[Imkah]

It is time to devalue the baht. Bring it down to where it was 30 years ago.

Thailand is known to be a cheap destination. Tourists and expats come here for easy and affordable living. A strong baht will turn people off.

Wake up, my friend! Tourism is an important industry I agree, but Thailand is (and should) look for guests with more spending power than the odd farang who wishes to spend his or her eve of life here. The times of the 30 Baht bungalow on a lonely beach are long gone. Welcome the luxury-expecting Mandarin -, Japanese - and Russian- speaking guests not on a social security budget.

[hellodolly]

It is time to devalue the baht. Bring it down to where it was 30 years ago.

Thailand is known to be a cheap destination. Tourists and expats come here for easy and affordable living. A strong baht will turn people off.

Wake up, my friend! Tourism is an important industry I agree, but Thailand is (and should) look for guests with more spending power than the odd farang who wishes to spend his or her eve of life here. The times of the 30 Baht bungalow on a lonely beach are long gone. Welcome the luxury-expecting Mandarin -, Japanese - and Russian- speaking guests not on a social security budget.

Unfortunately that is the way the building of new residents is going. For people with lots of money.

How ever there is still lots of places you can retire to with out having all the 5 star amenities.

[NeverSure]

Funny tho how the prices in shops/bars of imported British stuff doesnt get any cheaper!!

This. The article talks about the strengthening of the baht, but just go to the store and find out how much it will buy compared to last year, or better yet five years ago.

The truth is that the baht isn't weakening as much as some Western currencies. It's only a comparison, based on current perception by markets.

Thailand is in a battle it can't win. The battle is that China, Japan, S. Korea and the Western powers are all deliberately keeping the value of their currencies low to stimulate their economies and to improve exports. They are manipulating their currencies against other currencies and the baht is just sitting there with Thailand unable to control it.

If Thailand lowers interest rates in an attempt to slow the inflow of foreign money, it has an inflationary affect. If they raise interest rates to discourage borrowing for consumer goods and commercial projects, it would slow the economy.

Thailand has no control over its destiny. The amount of baht there is in the world compared to the aggregate of major currencies is miniscule and the big players are playing. Thailand isn't in the club.

[chiang mai]

Funny tho how the prices in shops/bars of imported British stuff doesnt get any cheaper!!

This. The article talks about the strengthening of the baht, but just go to the store and find out how much it will buy compared to last year, or better yet five years ago.

The truth is that the baht isn't weakening as much as some Western currencies. It's only a comparison, based on current perception by markets.

Thailand is in a battle it can't win. The battle is that China, Japan, S. Korea and the Western powers are all deliberately keeping the value of their currencies low to stimulate their economies and to improve exports. They are manipulating their currencies against other currencies and the baht is just sitting there with Thailand unable to control it.

If Thailand lowers interest rates in an attempt to slow the inflow of foreign money, it has an inflationary affect. If they raise interest rates to discourage borrowing for consumer goods and commercial projects, it would slow the economy.

Thailand has no control over its destiny. The amount of baht there is in the world compared to the aggregate of major currencies is miniscule and the big players are playing. Thailand isn't in the club.

Nonesence again, if Thailand seriously wants to reduce capital inflows and to weaken the Baht, all it needs to do is repeat what it did the last time, establish inbound capital controls - if i wants to strengthen the currency, it only has to do nothing. There are more tools in the tool box than merely interest rate manipulation.

[Naam]

i used to get 16 baht to the OZ dollar and now its much better

bought bahts at 32

then put it in Thai funds

win win

Thailand says it wont interfere with the baht until it breaches 27 to the USD

If they lower the baht then exports improve - win win on the funds again

i hope

This may be true to a degree, but think of all the foriegn debt Thailand owes, strengthening of the baht helps in reducing its liabilities, albeit in the short term anyway. At the rate it is now, it is a win/lose ratio from whichever side you sit. Strengthens more, then time to do the sums.

please tell us more about the foreign debt Thailand owes and compare it with the external debt of other countries. it's not rocket science. here's a link:

http://www.indexmundi.com/map/?v=94

But do you also need to account for assets owned abroad? If Americans owe 12 trillion but have 22 trillion in foreign assets, it can't be that bad, can it?

external debt means public debt and has nothing to do with individuals or assets owned abroad. also, i would like to know the source and who exactly allegedly owns those foreign assets valued at 22 trillion. definitely non the main debtor... the United States of America.

[Thai at Heart]

Funny tho how the prices in shops/bars of imported British stuff doesnt get any cheaper!!

This. The article talks about the strengthening of the baht, but just go to the store and find out how much it will buy compared to last year, or better yet five years ago.

The truth is that the baht isn't weakening as much as some Western currencies. It's only a comparison, based on current perception by markets.

Thailand is in a battle it can't win. The battle is that China, Japan, S. Korea and the Western powers are all deliberately keeping the value of their currencies low to stimulate their economies and to improve exports. They are manipulating their currencies against other currencies and the baht is just sitting there with Thailand unable to control it.

If Thailand lowers interest rates in an attempt to slow the inflow of foreign money, it has an inflationary affect. If they raise interest rates to discourage borrowing for consumer goods and commercial projects, it would slow the economy.

Thailand has no control over its destiny. The amount of baht there is in the world compared to the aggregate of major currencies is miniscule and the big players are playing. Thailand isn't in the club.

Nonesence again, if Thailand seriously wants to reduce capital inflows and to weaken the Baht, all it needs to do is repeat what it did the last time, establish inbound capital controls - if i wants to strengthen the currency, it only has to do nothing. There are more tools in the tool box than merely interest rate manipulation.

Problem is, that often has the effect of throwing the baby out with the bathwater.

[chiang mai]

Funny tho how the prices in shops/bars of imported British stuff doesnt get any cheaper!!

This. The article talks about the strengthening of the baht, but just go to the store and find out how much it will buy compared to last year, or better yet five years ago.

The truth is that the baht isn't weakening as much as some Western currencies. It's only a comparison, based on current perception by markets.

Thailand is in a battle it can't win. The battle is that China, Japan, S. Korea and the Western powers are all deliberately keeping the value of their currencies low to stimulate their economies and to improve exports. They are manipulating their currencies against other currencies and the baht is just sitting there with Thailand unable to control it.

If Thailand lowers interest rates in an attempt to slow the inflow of foreign money, it has an inflationary affect. If they raise interest rates to discourage borrowing for consumer goods and commercial projects, it would slow the economy.

Thailand has no control over its destiny. The amount of baht there is in the world compared to the aggregate of major currencies is miniscule and the big players are playing. Thailand isn't in the club.

Nonesence again, if Thailand seriously wants to reduce capital inflows and to weaken the Baht, all it needs to do is repeat what it did the last time, establish inbound capital controls - if i wants to strengthen the currency, it only has to do nothing. There are more tools in the tool box than merely interest rate manipulation.

Problem is, that often has the effect of throwing the baby out with the bathwater.

Yes agreed, but BOT is able to manage that to a greater degree by modifying the period of witholding and the percentage, it doesn't have to be 15% for one year.

[tullynagardy]

Baht weakens further, now 46 to £1 and approaching the status quo again.

This article is dated 29th April and seems to fly in the face of reality to be perfectly honest. It weakened in the 29th, not strengthened.

[Somrak]

Unreseabal (i hope you understink) Some did know,that they will make such a lot of money, that

they could not sleep for nights and did speak days ago!

10 % in 3 days!

I would like to know, how many billions did go to the one party?

Edited June 7, 2013 by Somrak