Central Bank Outlines 3 Factors Leading To Weakened Baht

[webfact]

Central bank outlines 3 factors leading to weakened baht
By Digital Media



BANGKOK, June 5 – The United States’ application of the minimised quantitative easing (QE) programme, China’s economic slowdown and the Thai Finance Ministry’s foreign capital control are major elements contribution to the depreciating baht, according to a senior central bank official said.

Pongpen Ruengvirayudh, deputy governor of the Bank of Thailand (BoT), said foreign capital inflows have gradually eased while the US Federal Reserve will scale down its QE measures – a signal of US economic revival and return of capital to dollar-trading markets.

China’s economy is on the downward trend from its 7.7 per cent growth in Q1, a phenomenon which, she said, will have an impact on Asian countries which rely heavily on exports to China.

Foreign investors have slashed their investment portfolios in Thailand’s bond market since last month, she said, adding that the Thai government has been mulling a curb on foreign capital inflows – a major factor that deterred investors.

The Thai currency moved slightly yesterday from Bt30.42/44 to Bt30.38/40 against the dollar. (MCOT online news)


-- TNA 2013-06-05

[Redhawk]

Some weeks ago the people complaining about the Baht is getting too strong, now the Baht is weaking as they wanted to, do the peole know what the want?! What ever side of the medal, today's no one is happy with anything, apart from that I doubt that the politicians over here understand economics!

[Lancelot]

When I look at USD-THB graphs, the Dollar weakened considerably -and remained weak- around 2009. Just about the time the (US) Fed started its QE bond purchases.

Supply and demand

[laurentbkk]

keep low Thai Bath , it will boost export and tourism .

[dezy1801]

keep low Thai Bath , it will boost export and tourism .

What the hell does a Bath have to do with this topic?

[up-country_sinclair]

keep low Thai Bath , it will boost export and tourism .

What the hell does a Bath have to do with this topic?

Saving water in low baths would preserve a natural resource that might become a highly valuable commodity one day, which in turn could affect the strength of the baht.

Edited June 5, 2013 by up-country_sinclair

[givenall]

Some weeks ago the people complaining about the Baht is getting too strong, now the Baht is weaking as they wanted to, do the peole know what the want?! What ever side of the medal, today's no one is happy with anything, apart from that I doubt that the politicians over here understand economics!

Not only politicians understand economy, the economists don't understand economy. It's best to using a magic eight cube to get your answer

[Thaddeus]

keep low Thai Bath , it will boost export and tourism .

What the hell does a Bath have to do with this topic?

Saving water in low baths would preserve a natural resource that might become a highly valuable commodity one day, which in turn could affect the strength of the baht.

Is that trickle down economics in action?

[Khun Jean]

keep low Thai Bath , it will boost export and tourism .

And spend more baht on necessities (energy, food) as their price will go up at least an equal amount.

Then other countries lower their currency, where does it stop until someones currency is worth zero?

[AsterixThai]

The answer is:

http://www.nationmultimedia.com/breakingnews/Rice-schemes-losses-negative-for-Thailand-Moodys-30207475.html

[bkk_mike]

keep low Thai Bath , it will boost export and tourism .

And spend more baht on necessities (energy, food) as their price will go up at least an equal amount.

Then other countries lower their currency, where does it stop until someones currency is worth zero?

That already happened - the country was Zimbabwe.

Their currency went from being worth US$1.47 at launch in 1980 (when the Zimbabwean Dollar replaced the Rhodesian Dollar), to being worth something like $US0.000000000000000000000000000000000000000000000000000001 (if I got the number of zeroes right) when they gave up trying to print their own money and allowed shops to accept foreign cash.

At one point, inflation was close to 100% (each DAY), and they had to quote the yearly inflation rate in googols. (google it...)

As for the rice scheme - surely they want the baht to drop in value so that the rice that they're buying (with baht), is suddenly price-competitive again when it comes to selling it in the markets (in USD).

Edited June 5, 2013 by bkk_mike

[affen02]

Yaayy, keep the bath low it will boost my wallet

[pomchop]

keep low Thai Bath , it will boost export and tourism .

What the hell does a Bath have to do with this topic?

Saving water in low baths would preserve a natural resource that might become a highly valuable commodity one day, which in turn could affect the strength of the baht.

Is that trickle down economics in action?

did they throw the baht out with the bath water?

[xavierr]

Such fluctuations are normal.

The "strong Baht" of a couple of weeks ago was not based on any fundamental strengths of the Thai economy.

[Naam]

Such fluctuations are normal.

The "strong Baht" of a couple of weeks ago was not based on any fundamental strengths of the Thai economy.

currencies are rarely based on economy strengths.

Edited June 6, 2013 by Naam

[belg]

so will it mean that my $ or euro are getting better? for euro i saw it was back up to 39.x from a few weeks ago as low as 37.x

[cocopops]

What the hell does a Bath have to do with this topic?

keep low Thai Bath , it will boost export and tourism .

Baht is an English word. "Bath" is the Thai word for Baht rendered using the Royal Thai General System of Transcription. At least, so I have always assumed...

Update: Now I'm starting to doubt the first bit... Where the heck does the spelling "baht" come from?

Edited June 6, 2013 by cocopops

[Thaddeus]

Where the heck does the spelling "baht" come from?

Using English phonetics, that is how you write the sound of the word on paper.

The only places I have seen the Thai currency written as 'bath' have been bars run by people of the Germanic races,

[yoshiwara]

so will it mean that my $ or euro are getting better? for euro i saw it was back up to 39.x from a few weeks ago as low as 37.x

Today it is euros that are doing better, but having both on tap as choices to exchange for baht a good option.