Kittiratt Blasts Central Bank On Currency Management

[otherstuff1957]

Kittirat's criticism of the BOT has nothing to do with the Baht strengthening or weakening. The currency movement is just an excuse. One of Thaksin's goals is for the government to take direct control of the Bank of Thailand. With that direct control, he can manipulate the currency to make additional billions for himself, his "clone" and his cronies.

Kittirat is just being to attack dog on this issue in an attempt to get into Thaksin's good graces and keep his place in the Cabinet.

[timewilltell]

There are probably a lot of reasons for currency fluctuations. Firstly the markets have momentum, most traders will follow the trend.

The upward trend of the baht started when the American led financial crisis gathered momentum, the bankers having conned the world with their fractional reserve banking fraud supported by government backing, simply accellerated the problem, and still does.

So when the dollar started to weaken, investors and businesses looked for somewhere safe to stick their money. South America is a non started because of the previous default history, Europe was trying to sort out the banking debacle, and still is, Japan has practcally zero interest and China is anal about pegging its currency. Thailand and Asia became the most favourable place to invest and the prolonged buying of the Baht sent its currency sky high. The trend following exascurbated that and now the reversal begins. The baht will continue its decline because it does not have the expertise to manage its economy. Not only that it is not really politically stable, is engaged in massive corruption through the rice pledging scheme which will cost billions, is a protectionist economy and does not open itself fully to foreign investment it would otherwise have because of its xenophobia. There is another destabilizing factor on the horizon which I do not think I am allowed to mention which may well thro the country into great civil unrest. None of this is good for business or investment and I think Thailand has become the bed and breakfast for investors taking advantage of a quick opportunity. The money will not stay long especially when the government start talking of controlling outflows like they did a few months back. That will set in panic. Add this to the fact that Thailand is trying to lie to the world about its economy, particularly over the politically explosive rice scam and its apparent intention to borrow 2.2 trillion for an infrastructure project that will see up to half disappear in corruption. How will it pay it back when interest rates rise from these bottom levels against a backdrop of a rapidly falling baht.

If you were an investor would you leave your money here?

[millwall_fan]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

[billd766]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

Do you mean that Kittirat is NOT of the ruling elite?

He is certainly rich enough and is a DPM and Finance Minister of the ruling party.

Surely that must qualify him?

[ray23]

Having read this I would say most are well informed and covered the bases.

My thoughts at this juncture let um go, they keep it up baht will be back to 56 to the dollar before it's over,

I will enjoy that, I will not worry about Thailand any longer. Thai's don't care why should I. In ten years I don't remember a truly functioning government since I have been here. They keep going they will drive the SET back to 600 and I will buy back in again, careful to exit before this happens again.

[samran]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

It might suprise you to hear that the BOT Governor is actually doing his job - that is to keep inflation under control - and has the legislated independence to do so.

[bigbamboo]

If anyone is to blame for the volatility here it is Kittirat himself. Much of it is down to the US$ volatility but if Kittirat had actually concentrated on his own job instead of continually interfering with the BOT, the interest rate probably wouldn't have needed to be dropped.

He's just playing politics and trying to put another lackey in charge of another largely independent organisation.

I would love you to back this up with some explanation, especially the part about the interest rate probably wouldn't have needed to be dropped part.

You are aware these things are fairly complex?

Well said.

That is exactly why he should never even been allowed to look at the job.

What?

Khunkhen is obviously extremely well versed on economics and as such can make a pretty definitive comment on how things are affecting the Thai economy. If, like many people on here say, and this guy is a complete dim wit, despite being head of the SET for 5 years, i would be very interested to know what all the scholars and academics on Thai Visa are doing here, rather than submitting resume's to the IMF.

The guy seems to have his knickers in a twist at the moment, but he was complaining about volatility which is true. The same volatility which has been seen in the global markets for the past 10 years, its nothing new. He should shut his mouth and get on with it, but for people to question his intelligence when he has held the positions he has in the private sector, I think is a bit harsh.

People used to think Gordon Brown knew what he was doing too.

[yoshiwara]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

When you say that Kittirat is not a member of the ruling elite are you suggesting he is a Millwall supporter?

[Thai at Heart]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

When you say that Kittirat is not a member of the ruling elite are you suggesting he is a Millwall supporter?

Kittirat thinks it is apparently very simple to deliver smooth movements in exchange rates, when all you basically have is interest rates to combat stampedes of money in and money out on short periods of time.

He is sorely mistaken.

[bigbamboo]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

When you say that Kittirat is not a member of the ruling elite are you suggesting he is a Millwall supporter?

Kittirat thinks it is apparently very simple to deliver smooth movements in exchange rates, when all you basically have is interest rates to combat stampedes of money in and money out on short periods of time.

He is sorely mistaken.

Thaksin thought he could control rice prices too !

[Thai at Heart]

There is a war going on between K. Kittirat and the Governor of the Bank of Thailand over interest rate policy. In my view K. Kittirat is absolutely right in trying to talk the Baht down. It is stupidly high and this only benefits the Ruling Elite, not the Thai economy in general. What he is saying to the governor is that it is his job to avoid wild fluctuations in the currency and this he is failing to do. Of course the governor - as a member of the Ruling Elite- would be very happy if the strong Baht caused the elected government problems.

When you say that Kittirat is not a member of the ruling elite are you suggesting he is a Millwall supporter?

Kittirat thinks it is apparently very simple to deliver smooth movements in exchange rates, when all you basically have is interest rates to combat stampedes of money in and money out on short periods of time.

He is sorely mistaken.

Thaksin thought he could control rice prices too !

True. But expecting a central bank to smoother this sort of thing is ridiculous.

[rubl]

The Stock Exchange of Thailand main index went up 62.00 points, or 4.42%, to close at 1,465.27 points at the end of trading session this afternoon. The trade value was 63.89 billion baht, with 9.67 billion shares traded.

Does this mean money is coming back again? Baht to rise again? Minister of Finance Kittiratt blasting the Bank of Thailand for letting the Baht rise and causing threats to exports? How am I to decide on moving billions in this up-and-down flipflop environment?

[Thai at Heart]

The Stock Exchange of Thailand main index went up 62.00 points, or 4.42%, to close at 1,465.27 points at the end of trading session this afternoon. The trade value was 63.89 billion baht, with 9.67 billion shares traded.

Does this mean money is coming back again? Baht to rise again? Minister of Finance Kittiratt blasting the Bank of Thailand for letting the Baht rise and causing threats to exports? How am I to decide on moving billions in this up-and-down flipflop environment?

As though he would be happy if all the falang money left and the Thai stock market went to 1000.

[ray23]

The Stock Exchange of Thailand main index went up 62.00 points, or 4.42%, to close at 1,465.27 points at the end of trading session this afternoon. The trade value was 63.89 billion baht, with 9.67 billion shares traded.

Does this mean money is coming back again? Baht to rise again? Minister of Finance Kittiratt blasting the Bank of Thailand for letting the Baht rise and causing threats to exports? How am I to decide on moving billions in this up-and-down flipflop environment?

Yes. per kelive they were net buyers today

[Thai at Heart]

The Stock Exchange of Thailand main index went up 62.00 points, or 4.42%, to close at 1,465.27 points at the end of trading session this afternoon. The trade value was 63.89 billion baht, with 9.67 billion shares traded.

Does this mean money is coming back again? Baht to rise again? Minister of Finance Kittiratt blasting the Bank of Thailand for letting the Baht rise and causing threats to exports? How am I to decide on moving billions in this up-and-down flipflop environment?

It's enough to know that they intervened, so they aren't about to let Kittirat's bleating drop the baht to the floor. And to be honest, they have a boat load of USD more to protect the baht today than they did in 97.

[ray23]

we just got a dress rehearsal for what is going to happen when the FED does taper off.

It looked to me like the BOT target was 30.50. It would seem to me that the Government should have watched this closely, time is coming. If they could have stopped it's falling then they could have kept growth within reason as well. So a far as I'm concerned they might as well stop the dog and pony show the truth is out, for anyone who bothered looking

[Thai at Heart]

we just got a dress rehearsal for what is going to happen when the FED does taper off.

It looked to me like the BOT target was 30.50. It would seem to me that the Government should have watched this closely, time is coming. If they could have stopped it's falling then they could have kept growth within reason as well. So a far as I'm concerned they might as well stop the dog and pony show the truth is out, for anyone who bothered looking

It's normal that a revision like this overshoots and then stabilizes. Someone needs to put a sock in kittirats gob.

[Eesat]

Its actually to do with whats happening over the pond in America as they are bringing money back in due to the improvement in their economy and changes in strategy.

Improvement in the US economy,seriously?

I've heard very recently that the Federal Reserve is about to raise the amount of Quantitative Easing month-on-month,from the USD $85 billion it stands at now!Even the Eurozone is doing better than them which is why the Euro's rising again and heading straight for $1.35!

From the Nation yesterday.

"The baht has fallen from its 16-year peak of 28.55 on April 19 amid a mix of negative factors such as capital outflows, which began after Fed chairman Ben Bernanke's recent remark that the US central bank would scale back asset buying if growth is maintained"

This is the reason that the Baht has weakened ie: growth in the USA has exceeded expectancy and they plan to cut back on buying thai assets such as stocks and bonds and presumably switch to Dollar denominated ones.

The Nation,those experts better informed on the US Economy than Bloomberg's,CNBC,Reuters etc?

As previously mentioned,I have it on good authority that the USA may be increasing their quantitative easing to USD $95 billion per month from USD $85 billion very shortly!

[Tchooptip]

I love Thailand always the Land Of Smile anywhere anytime

(can click on photo for magnifying)