The Baht Appreciates To Strongest Level In 7 Years

[Braccobaldo]

Thai bath is simply following the trend of all others asian area currencies....and if in the future chinese yuan will revaluate you can bet than also Thai Bath and other asian currencies will do so.

[capt_canada42]

Worry not friends. Economics will take care of meddling men. Here is my theory of the "dismal science".

O sweet economics

how often have the

doting fingers of pruient

government bureaucrats

pinched and poked

thee

has the haughty thumb of fools prodded thy beauty? how

often have crusading lawyers taken

thee

upon their scraggy

knees

squeezing and buffeting thee

that thou mightest conceive

respect and profit unearned.

but, true to thy invisible and guiding hand, thou

answerest them with unconquerable,

equilibrium.

hoping you enjoy and stay well in the land of serendipity. Otis

good one Otis

[capt_canada42]

hehe funny story...

The baht is appreciating a few cents to the dollar, but the dollar keeps dropping to the Euro...

Conclusion: I get a lot more Baht for my Euros than before...

Thank god I get paid in Euros...

SD

Yah but so much for your fellow country men the high cost of your currency means the cost of your goods are high and no work as your products costs are high, but I guess you Euro ######s don't care about work or making a living you just want to play the big man role, same as the English and there over valued pound

And to think I thought Americans were exaggerating Canadians ands chips on their shoulders - I will not have to doubt our brothers in the "Special realationship" so much

Not so my planker friend no chips here I just resent stupid governments and stupid people who don't realize that there currency being high valued means its hard to sell your products to others and I hear from my friends in Europe and the UK how its hard to find work and how there are no jobs and how they are having to lay off there staff. So my fine feathered friend learn alittle about economics it might help you undertsand the world better.

[Joel Barlow]

Car companies, oil companies, Big Pharma, chemical and home improvement companies, munition and weaponry suppliers, food and beverage distributors and Microsoft all don't want Thailand turned into a banana republic based on Fascist/Populist chicanery of the Franco/Juan & Evita Peron style. The poorly reasoned mega-projects, rampant non-performing loans, burgeoning and unmanaged household debt, monopoly orientation, crony corruption and educational irresponsibility of recent could produce inflation which would severely hamper the Global Corps endeavors. Nothing has been fixed here yet, so, pressure is still on. Neighboring curriencies strengthening? Sure, the kip, chat and real - get real. China made only a minor adjustment. The big boys don't play by rules, but do play hard. A trillion here, a trillion there - that's real money (until rampant inflation like in Weimar Germany).

Happy Songkran all - get your ya-yas out.

[george]

Update:

Strengthening of Thai baht likely to proceed in short run

BANGKOK: -- The strengthening of the Thai baht currently results from a capital inflow into the Stock Exchange of Thailand (SET) and is expected to proceed in the short run, according to the University of Thai Chamber of Commerce’s Economic and Business Forecasting Center.

Thanawat Polvichai, the center’s director, said on Monday that he believed the local currency would continue to stay around 38-39 to the US dollar for a while.

The current volatility of the baht would be in the short term because it is caused by the capital inflow into the stock market and the recovery of exports and tourism.

He projected the baht would appreciate to stay at 37.50 to the dollar in the April-May period and hover around 38-39 in the first half of this year before strengthening again to an average of 37 in the second half of this year.

Dr. Thanawat forecast that the country's exports would grow around 13-15 per cent this year and the gross domestic product (GDP) would expand 4-4.5 per cent.

Although global fuel prices would edge up to a certain extent at current, he believed the prices would stay around US$60-65 per barrel on average as forecast by the center for the whole year.

--TNA 2006-04-11

[chuchok]

Update:

Strengthening of Thai baht likely to proceed in short run

He projected the baht would appreciate to stay at 37.50 to the dollar in the April-May period and hover around 38-39 in the first half of this year before strengthening again to an average of 37 in the second half of this year.

Dr. Thanawat forecast that the country's exports would grow around 13-15 per cent this year and the gross domestic product (GDP) would expand 4-4.5 per cent.

--TNA 2006-04-11

I always thought that a strong baht would dampen exports.Just goes to show how thick I am.

[LaoPo]

Dr. Thanawat forecast that the country's exports would grow around 13-15 per cent this year and the gross domestic product (GDP) would expand 4-4.5 per cent.

Although global fuel prices would edge up to a certain extent at current, he believed the prices would stay around US$60-65 per barrel on average as forecast by the center for the whole year.

--TNA 2006-04-11

Export grows 13-15% ?......hmmmm

Oil stays on average of $ 60-65/Barrel?...hmmm

******************************************************************************

Excerpts from article:

http://www.atimes.com/atimes/Southeast_Asia/HC30Ae04.html

Export growth, far and away the main engine of Thailand's economy, slowed to 15% in 2005 from 22% in 2004. Last year slowing exports combined with surging imports produced trade and current account deficits of $8.6 billion and $3.7 billion respectively. Preliminary Bank of Thailand data report a $388 million trade deficit in January this year. Rising international oil prices accounted for about 40% of total import growth and pushed up core inflation from 2.7% in 2004 to 4.5% in 2005.

Rising inflation and interest rates undermined private consumption and investment in 2005 and will continue to dampen the economy in 2006. Combined with increasing political and social instability, higher rates will push private consumption and investment even lower this year. Meanwhile, increasing instability will sap private consumption by making Thais less confident and secure about the future. Instability will have an even more dramatic negative impact on private investment, for which stability is crucial.

In addition to faltering domestic demand, weakening external demand and increasing export competition from China are likely to put a another brake on Thailand's export growth. The slowdown in export growth in 2005 was paced by weakening exports of low value-added technology goods, which advanced by only 17% after surging 27% higher in 2004. The primary factor that slowed Thailand's technology exports in 2005 was rapidly growing export competition from China.

Higher international oil prices, which could exceed $100 per barrel ....

Faced with these external conditions, it will be difficult for Thai export growth to exceed 10% in 2006.

In 2005, strong foreign investment flows provided more than adequate funds to finance the current account deficit. Net foreign direct investment reached $3.3 billion - the highest level since 2001. But alarmingly, net foreign portfolio investment soared to $4 billion and short-term external borrowing by Thailand's private sector jumped by nearly $5 billion.

The last time the net foreign portfolio investment and short-term external borrowing increased by such magnitudes was in 1997 - the year before capital flight induced the devaluation of the baht, provoking a crippling economic recession. *****************************************************************************

LaoPo

Edited April 11, 2006 by LaoPo

[opothai]

Update:

Strengthening of Thai baht likely to proceed in short run

Although global fuel prices would edge up to a certain extent at current, he believed the prices would stay around US$60-65 per barrel on average as forecast by the center for the whole year.

--TNA 2006-04-11

me thinks he could have a problem with this particular forcast.

[LaoPo]

Update:

Strengthening of Thai baht likely to proceed in short run

Although global fuel prices would edge up to a certain extent at current, he believed the prices would stay around US$60-65 per barrel on average as forecast by the center for the whole year.

--TNA 2006-04-11

me thinks he could have a problem with this particular forcast.

Me agree...

LaoPo

[Two Roads]

Don't get fooled.....this is not about the Baht. vs. the Dollar or Euro.

This is about ALL fiat currencies.

They're all doomed....buy GOLD. :

[farang2002]

I don't think that there's anything mysterious about the Baht value as it's pegged to the US Dollar which has decreased in value. So it isn't really the case that the Baht has strengthened as much as it is the decreased valuation of the US Dollar. I wouldn't buy into the notion that anything Thailand did or will do has anything to do with the Baht going up or down, just a lot of hype.

Canada's currency has similarly increased in value, not because Canada or anything that it has done recently had done anything to cause it, again, it is simply because the USD went down.

The Euro, on the other hand, is very overvalued and has done nothing but hurt the common man who lives in the EU countries.

Here is another person who is talking out of their rectum.

The Baht is not pegged to the greenback and it hasn't been pegged to the green back since around the 2nd July 1997

It's great how so many people who have only just discovered where Thailand is on the map suddenly become experts on anuthing and everything to do with the realm.

Baht not "pegged" to the dollar? Last I heard, the dollar IS the international trading currency. Now I am getting fewer baht for my buck.

[capt_canada42]

Yah but so much for your fellow country men the high cost of your currency means the cost of your goods are high and no work as your products costs are high, but I guess you Euro ######s don't care about work or making a living you just want to play the big man role, same as the English and there over valued pound

Hmmm.... had your girl stolen by someone from Europe perhaps??

Not so my planker friend no chips here I just resent stupid governments and stupid people who don't realize that there currency being high valued means its hard to sell your products to others and I hear from my friends in Europe and the UK how its hard to find work and how there are no jobs and how they are having to lay off there staff. So my fine feathered friend learn alittle about economics it might help you undertsand the world better.

[Prakanong2005]

Yah but so much for your fellow country men the high cost of your currency means the cost of your goods are high and no work as your products costs are high, but I guess you Euro ######s don't care about work or making a living you just want to play the big man role, same as the English and there over valued pound

Hmmm.... had your girl stolen by someone from Europe perhaps??

Not so my planker friend no chips here I just resent stupid governments and stupid people who don't realize that there currency being high valued means its hard to sell your products to others and I hear from my friends in Europe and the UK how its hard to find work and how there are no jobs and how they are having to lay off there staff. So my fine feathered friend learn alittle about economics it might help you undertsand the world better.

Actually unemployment is quite low in the UK - never mind your illiterate economics you need a geography lesson too.

Some say a mans friends reflect him - maybe they are not good enough to get jobs in a vibrant economy like the UK.

[meom]

Note: I know that many of you will say: Hey, that's nice for me....my $'s and Euros will bring more Baht...but it goes far deeper than that on the long run.

You could say that. I'm still pegged at 25baht to the dollar and the missus is pegged at any rate above 25. So far we get along fine but once the baht depreciates above 50 to the dollar I might have to change position cause for sure she'll want to be on top

[Anon999]

Yah but so much for your fellow country men the high cost of your currency means the cost of your goods are high and no work as your products costs are high, but I guess you Euro ######s don't care about work or making a living you just want to play the big man role, same as the English and there over valued pound

Sour grapes and uninfored too!

The £ sterling has been depreciating against the Thai baht and Euro for some months while remaining virtually unchanged against the US$. Today the £ is 66.4265/baht and 1.74518/US$. The US$ is currently 38.069/baht.

Maybe you can illuminate on your claim that Sterling is overvalued so we can all understand where your source of information comes from. Maybe nobody told you that the Thai baht floated long ago and is no longer fixed against the US$ and will therefore never return to 36 to 38 to the £ or 20 to the US$.

This is rubbish - the £ has fallen steadily against the dollar over the laslt few months from a high not long ago of $1.90+ to $1.74

I don't dispute your knowledge on these matters but you should get your facts right.

Suggest you get your facts right!

The last time sterling was at US$ 1.90 was in early May 2005. It subsequently dropped to US$ 1.74 by July 2005 and then recovered to 1.84+ in September and has not been above 1.80 since then. Go read the historical charts data so you can see for yourself before you start typing rubbish.

Edited April 11, 2006 by Anon999

[Anon999]

Don't get fooled.....this is not about the Baht. vs. the Dollar or Euro.

This is about ALL fiat currencies.

They're all doomed....buy GOLD. :

Maybe you have beenwatching the price of gold? It recently went >600US$.

[Anon999]

I don't think that there's anything mysterious about the Baht value as it's pegged to the US Dollar which has decreased in value. So it isn't really the case that the Baht has strengthened as much as it is the decreased valuation of the US Dollar. I wouldn't buy into the notion that anything Thailand did or will do has anything to do with the Baht going up or down, just a lot of hype.

Canada's currency has similarly increased in value, not because Canada or anything that it has done recently had done anything to cause it, again, it is simply because the USD went down.

The Euro, on the other hand, is very overvalued and has done nothing but hurt the common man who lives in the EU countries.

Here is another person who is talking out of their rectum.

The Baht is not pegged to the greenback and it hasn't been pegged to the green back since around the 2nd July 1997

It's great how so many people who have only just discovered where Thailand is on the map suddenly become experts on anuthing and everything to do with the realm.

Baht not "pegged" to the dollar? Last I heard, the dollar IS the international trading currency. Now I am getting fewer baht for my buck.

The baht was floated many years ago as has already been stated.

[the_webninja]

This is really Good News, but Thailand still has a Long way to go yet. They are still depending on Foreign Investments to raise the Value of the Baht. The people who are going to really Change Thailand is the Thai people themselves. Each person must try to do more to Produce something.

Engineers should Design Electric Cars, Personal Home Wind Generators, Water Distillation Units, Operating Systems for Computers, (instead of just relying on Windows), things like this. This is how Japan became strong, by CREATING and Producing Quality Products that the World needs. Now Japan is Producing Cars so much better than the US, GM is shutting down, because GM intentionally designs cars to beakdown, so people will have to buy a new Car instead of designing the Cars to be easier to Fix. This has given Companies like Toyota (Who has Built their Reputation on Designing the Cars the way the Customer WANTS them designed- "You asked for it, You got it- Toyota), so they designed their Cars to be easier to Fix, while the US designed their Cars to be more Difficult to fix to try to Rip the Customer off. Japan is Winning. This is giving Japan an Economic Edge in the Automobile industry.

Thailand can follow the examples set by Japan, and by just design Quality Products, and do things that no one else is doing. Honda makes a Half Breed Electric, but no one is making a Fully Electric Car and Mass producing it, except Golf Cart makers. If Thailand designed and Produced a Fully Electric Car, it could put them on the economic Map so to speak. Things like this would make a much bigger difference in Thailand's economy than just Foreign Investments for Refining of Raw materials.

For years the World has treated the Thai people as Slaves, I want to Treat the Thai people like they deserve to be Treated, Like Royalty. That's why I am willing to give them all the Ideas I have to help them become Strong.

I am happy to see the Baht gain strength, but it's not enough yet. There is so much more to be done. But this is a glimer of hope.

[LaoPo]

This is really Good News, but Thailand still has a Long way to go yet. They are still depending on Foreign Investments to raise the Value of the Baht. The people who are going to really Change Thailand is the Thai people themselves. Each person must try to do more to Produce something.

Engineers should Design Electric Cars, Personal Home Wind Generators, Water Distillation Units, Operating Systems for Computers, (instead of just relying on Windows), things like this. This is how Japan became strong, by CREATING and Producing Quality Products that the World needs. Now Japan is Producing Cars so much better than the US, GM is shutting down, because GM intentionally designs cars to beakdown, so people will have to buy a new Car instead of designing the Cars to be easier to Fix. This has given Companies like Toyota (Who has Built their Reputation on Designing the Cars the way the Customer WANTS them designed- "You asked for it, You got it- Toyota), so they designed their Cars to be easier to Fix, while the US designed their Cars to be more Difficult to fix to try to Rip the Customer off. Japan is Winning. This is giving Japan an Economic Edge in the Automobile industry.

Thailand can follow the examples set by Japan, and by just design Quality Products, and do things that no one else is doing. Honda makes a Half Breed Electric, but no one is making a Fully Electric Car and Mass producing it, except Golf Cart makers. If Thailand designed and Produced a Fully Electric Car, it could put them on the economic Map so to speak. Things like this would make a much bigger difference in Thailand's economy than just Foreign Investments for Refining of Raw materials.

For years the World has treated the Thai people as Slaves, I want to Treat the Thai people like they deserve to be Treated, Like Royalty. That's why I am willing to give them all the Ideas I have to help them become Strong.

I am happy to see the Baht gain strength, but it's not enough yet. There is so much more to be done. But this is a glimer of hope.

The most intelligent economics lesson I've seen in years... sorry: decades

LaoPo

[Johpa]

......For years the World has treated the Thai people as Slaves, I want to Treat the Thai people like they deserve to be Treated, Like Royalty. That's why I am willing to give them all the Ideas I have to help them become Strong.

I am happy to see the Baht gain strength, but it's not enough yet. There is so much more to be done. But this is a glimer of hope.

Until the end of the 19th century, during the reign of Rama V, most Thais were held in one form of slavery or another and have continued to be treated little better by the ruling elite into current times. Until the ruling elite in Bangkok stops treating the masses like chattel there is little hope for the rest of the world to treat the Thai people any better.

As one ancient history professor use to teach me, power is a function of population X organization. The more people you have organized the more power you have. The Thai elite has always kept the larger Thai population from organizing thus insuring their, the elite's power over the masses while at the same time limiting the potential of the nation as a whole. The baat is going nowhere and these current minor fluctuations have only limited short term significance to few.

Chai Yo!

[dan10400]

This is really Good News, but Thailand still has a Long way to go yet. They are still depending on Foreign Investments to raise the Value of the Baht. The people who are going to really Change Thailand is the Thai people themselves. Each person must try to do more to Produce something.

Engineers should Design Electric Cars, Personal Home Wind Generators, Water Distillation Units, Operating Systems for Computers, (instead of just relying on Windows), things like this. This is how Japan became strong, by CREATING and Producing Quality Products that the World needs. Now Japan is Producing Cars so much better than the US, GM is shutting down, because GM intentionally designs cars to beakdown, so people will have to buy a new Car instead of designing the Cars to be easier to Fix. This has given Companies like Toyota (Who has Built their Reputation on Designing the Cars the way the Customer WANTS them designed- "You asked for it, You got it- Toyota), so they designed their Cars to be easier to Fix, while the US designed their Cars to be more Difficult to fix to try to Rip the Customer off. Japan is Winning. This is giving Japan an Economic Edge in the Automobile industry.

Thailand can follow the examples set by Japan, and by just design Quality Products, and do things that no one else is doing. Honda makes a Half Breed Electric, but no one is making a Fully Electric Car and Mass producing it, except Golf Cart makers. If Thailand designed and Produced a Fully Electric Car, it could put them on the economic Map so to speak. Things like this would make a much bigger difference in Thailand's economy than just Foreign Investments for Refining of Raw materials.

For years the World has treated the Thai people as Slaves, I want to Treat the Thai people like they deserve to be Treated, Like Royalty. That's why I am willing to give them all the Ideas I have to help them become Strong.

I am happy to see the Baht gain strength, but it's not enough yet. There is so much more to be done. But this is a glimer of hope.

The likelihood of Thailand doing anything that nobody else is doing, and not relying on agricultural exports for growth, is slim to none.

You got the slave theory partially correct - except it should be: "For years, Thais have treated Thai people as slaves....".

[george]

Update:

Baht likely to touch 37 to dollar, says money dealer

BANGKOK: -- The baht is likely to appreciate to touch 37 to the US dollar, the strongest in seven years if it breaks a resistance level of 37.5 to the dollar, according to a money dealer.

Chatchaval Chamrasvitthayawong, Deputy Manager of Bank of Ayudhya's Financial Management Division, said the strengthening of the baht to 38 to dollar is not unusual because it moved in the same direction with other regional currencies.

He said the US dollar had weakened against all currencies as there is a capital inflow into Asia.

As well, the Chinese yuan had appreciated upon expectation that Chinese President Hu Jintao would raise the US trade deficit for discussion in his official trip to the US on April 20.

Technically, he said, the baht had a resistance level of 38 to the dollar. Although it broke the level to touch 37.80 to dollar during the trading, it closed at more than 38 to toe the dollar.

Should the baht manage to break the resistance level of 38 to the dollar, it would appreciate to 37.50 and 37 to the dollar respectively. If it did break to 37, it would be the strongest in seven years or since 1999.

On Caretaker Finance Minister Thanong Bidaya’s remarks that the appropriate level the baht should stay is 39 to the dollar, Mr. Chatchaval said it is an average level in the medium term rather than the short term.

He said currency exchange rates could not be determined because they are sensitive to economic conditions. It depended on the economic fundamental as well.

He added it is uncertain whether the capital that flew into the country was for short-term speculation or not.

The capital had flown into the money and stock markets before the political crisis would ease. Once the political situation returns to normal, he believed, most of the capital would flow into the stock market.

--TNA 2006-04-12

[Jai Dee]

Baht at 6-year high against US$

The baht currency jumped to a six-year high against the U.S. dollar Wednesday on surging foreign demand, sparking concern that the rising baht would hurt competitiveness of Thai exports.

The baht stood at 37.90-38.00 against the U.S. dollar early Wednesday and was quoted at Bt46.37-75 to the euro.

"The baht surged on strong demand from foreign investors. Foreigners were buying up Thai assets and equities," said Kitti Nathisuwan, a senior economist at Macquarie Research Equities. The demand for the baht rose after the central bank on Monday raised its key interest rate to 4.75 percent, the highest level since2000, in a bid to curb inflation, Kitti added.

The baht also gained ground against the dollar as investors dumped the U.S. dollar amid concerns over a possible US military strike against Iran, he added.

"Those factors added to support the baht and Thai exports could lose competitiveness if baht continues to rise further," Kitti said.

"If there is no intervention by the Bank of Thailand, the currency could go up to the Bt36 level. However, the central bank may not let that happen,"he added.

Source: The Nation - 12 April 2006

[jing jing]

I love these "predictions" from money manager types... as if anyone could actually predict currency fluctuations... and as if, if they actually had the correct information, they would disseminate it to the public free of charge.

It's just as likely that they are disseminating false information, so that they can capitalize on the tendency of the masses to believe what they hear, and thereby make a killing by betting things will go in the opposite direction. Shades of "Trading Places" and the falsified crop report for orange juice futures...

[britmaveric]

38.0764 THB

[xbusman]

At 41 baht to the dollar, I barely compete with exports versus the Chinese. I still am 10% over what they can produce things for and when you add the extra freight and customs payments, lost VAT, costly and time consuming visas, its hardly worth it.

At 39 baht to the dollar, I begin to lose money on Thai manufactured goods, below 39 and I scramble to place my orders with the Chinese.

At 38 baht, watch exports screech to a halt in Thailand. I for one am heading to America to place large orders for goods to import into Thailand, at those prices a serious profit can be made here. Thats about 50,000 baht off the price of used Harley in just exchange rates, in essence I get free dismantling and shipping thanks to the exchange rate.

Whatever the reasons for this fluctuation in the exchange rate, it bodes ill for the Thai economy. I keep hearing that the baht is "appreciating in line with other Asian currencies" but when I run the graphs its a complete lie. The baht has appreciated almost 12% against the Taiwan dollar and 10% against the yen in the last six months. Something is moving the baht outside the normal ranges and just like the 97 manipulations can bode no good for local banks already overburdened with non performing loans.

I am off to China this week to move my manufacturing back there and then to America to buy buy buy for sale in Thailand. I may be small but dont think I am alone, hopefully I am in advance.

Edited April 12, 2006 by xbusman

[chuchok]

At 41 baht to the dollar, I barely compete with exports versus the Chinese. I still am 10% over what they can produce things for and when you add the extra freight and customs payments, lost VAT, costly and time consuming visas, its hardly worth it.

At 39 baht to the dollar, I begin to lose money on Thai manufactured goods, below 39 and I scramble to place my orders with the Chinese.

At 38 baht, watch exports screech to a halt in Thailand. I for one am heading to America to place large orders for goods to import into Thailand, at those prices a serious profit can be made here. Thats about 50,000 baht off the price of used Harley in just exchange rates, in essence I get free dismantling and shipping thanks to the exchange rate.

Whatever the reasons for this fluctuation in the exchange rate, it bodes ill for the Thai economy. I keep hearing that the baht is "appreciating in line with other Asian currencies" but when I run the graphs its a complete lie. The baht has appreciated almost 12% against the Taiwan dollar and 10% against the yen in the last six months. Something is moving the baht outside the normal ranges and just like the 97 manipulations can bode no good for local banks already overburdened with non performing loans.

I am off to China this week to move my manufacturing back there and then to America to buy buy buy for sale in Thailand. I may be small but dont think I am alone, hopefully I am in advance.

You have just captured the whole scenario in a nutshell!

[simcity]

Interest rate increase three time last month !

Oil is going over 70 $ , why not put the baht at 1/1 , it will give a lot of marges for a bad economy !

Is it not in Thailand when hotels start to be empty they start to increase the rates ?

[britmaveric]

Interest rate increase three time last month !

Oil is going over 70 $ , why not put the baht at 1/1 , it will give a lot of marges for a bad economy !

Is it not in Thailand when hotels start to be empty they start to increase the rates ?

Hotels actually lessen their rates....

[Johpa]

If the baat strengthens then exports get hurt. As one poster noted, perhaps it becomes more profitable to import. But that aside, if exports are hurt then there will be jobs lost and many of those jobs will be from the middle class, just the people who are itching to get more political power.

Thai exports have not been able to compete with Chinese imports for many years. The labor here is simply too expensive. One good barometer is the shoe industry. A shoe factory can easily be relocated to the source of cheapest labor. While ten years ago I could find brand name shoes made in Thailand, today they are harder to find. Thailand will never be able to compete with China with exports that can be just as easily made in China. As an export oriented economy, a strengthening baat is simply not good news except to the small elite who own baat and want to upgrade their currency.

Other middle class jobs negatively impacted are tourism related. The combination of a more expensive baat for foreigners combined with increasing energy costs and pretty soon Thailand is no longer a viable middle class tourist destination from Europe or North America. This summer season alone prices for tickets from North America to Thailand have increased nearly 30% over a year ago. Do the math. Will the typical tourist still visit when, in the next few years, airfare alone equals the current cost of a 10 day vacation?

The current short term strenthening of the baat is perhaps just another prelude to another collapse of the baat to be taken advantage of by the elite. Watch the outflow here.