weak thai baht please, NO WEAKER

[jpduggan]

Who cares but it's good for farangs living here on a foreign pension so the weaker the better.

[GAZZPA]

I think poster has got his import / exports mixed up.

A weak baht does help exports because there are now more Thai baht to the USD, in other words the goods are cheaper to other countries.

The Thai farmer is not going to buy those goods, Thailand will be making them and then shipping them out.

So, the a falling baht will attract more countries to buy from Thailand. Also, as the fall in baht has been triggered by current activities (which will end) it is likely it will rise again which attracts investment in the thai baht itself.

So, it' not all good granted but there are benefits to the Thai economy and therefore Thai people.

[chiang mai]

Who cares but it's good for farangs living here on a foreign pension so the weaker the better.

You missed the point by several light years, the point being that a weaker Baht translates into higher inflation and that is not very good for pensioners on fixed income.

But in respect of NS's point: when THB was strong there was always the chance that sellers and producers would want to increase their profits by upping the price, from time to time government would cry inflation is too high and they would take steps to manage it down. But when that inflation is caused by a weak baht and the source of inflation is the cost of imported goods, governments hands are tied other than to do what they do currently with diesel, although I can hardly see them wanting to subsidize the cost of imported salmon!

[bonobo]

Whether a currency goes up or down always has both positive and negative effects on a population.

I work in a company that exports about 25% of its products. Our prices are now becoming more competitive, and as such, our foreign sales are rising. We've had to buy new equipment and hire more workers. The year end bonuses to all the workers will be higher than last year's bonuses.

On the other hand, we had to raise our meal costs by 5 baht per day over the past year due to rising costs of pork, veggies, etc. The food package is still rather inexpensive and close to 100% of the workers participate in it, but still, that is 35 baht more per week.

[Lancelot]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies.

A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument.

Give me a currency stronger to the other guys any time

[robblok]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies. A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument. Give me a currency stronger to the other guys any time

Sure that is why i want a weak baht because i get my income in Euro's.

As long as the baht drops more as the inflation rises I could not be more happy.

But a too strong currency is never good for the exporters why do you think china and others kept their currency down. Something can be said for both sides and you just have to look at your personal situation.

If you get paid in local currency then yes its bad if not.. happy times.

[chiang mai]

You'll be OK then as long as your future pension is index linked at a rate that is equal or higher than the inflation rate in Thailand, is it?

[Lancelot]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies. A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument. Give me a currency stronger to the other guys any time

Sure that is why i want a weak baht because i get my income in Euro's.

As long as the baht drops more as the inflation rises I could not be more happy.

But a too strong currency is never good for the exporters why do you think china and others kept their currency down. Something can be said for both sides and you just have to look at your personal situation.

If you get paid in local currency then yes its bad if not.. happy times.

Sure a weak currency is good for expats drawing relatively stronger currencies from abroad

China keeps the value of its currency low (in large part by buying US debt ) so its good for China Inc Less so for the average Chinese IMHO. Successful export driven countries eventually mature in to countries with strong, stable money. The post WWII German economy is a good example.

I'd still debate you that a strong currency is better for the average Joe Citizen. That would be a four or five beer debate minimum

Edited December 22, 2013 by Lancelot

[robblok]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies. A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument. Give me a currency stronger to the other guys any time

Sure that is why i want a weak baht because i get my income in Euro's.

As long as the baht drops more as the inflation rises I could not be more happy.

But a too strong currency is never good for the exporters why do you think china and others kept their currency down. Something can be said for both sides and you just have to look at your personal situation.

If you get paid in local currency then yes its bad if not.. happy times.

Sure a weak currency is good for expats drawing relatively stronger currencies from abroad

China keeps the value of its currency low (in large part by buying US debt ) so its good for China Inc

I'd still debate you that a strong currency is better for the average Joe Citizen. That would be a four or five beer debate minimum

Your debate with a strong currency better for the average Joe Citizen, would depend on the economy of said country and how heavy it depends on exports, and how much it imports.

Oil prices are usually the first thing to hit the average Joe Citizen especially here in Thailand.

Anyway for me the currency can drop an other 5-10% and be back at the height of the good old days. But right now im already quite happy. I can understand that is not the case for those with local earnings.

[MyFriend You]

For Local Goods, a 3 baht 'Toong, Cha dum yen' will still be 3 baht whether the rate is 20 or 50 to $1. Simple.

The people a weak baht effects the most are the Rich and greedy........ .I have lived here with both exchange rates - 20 & 50, I live locally and didn't see a change either way, its only when I went to Bangkok is where I felt the Exchange rate Blues........not so out in the Provinces.

[meechai]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies. A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument. Give me a currency stronger to the other guys any time

I think most countries prefer a not too strong currency

The strong currency benefits the few locals

Not too strong benefits the many

Remember the majority of Thai's are not reliant on import products from other countries

But they are reliant on selling/exporting theirs.

Did China become strong by having high priced goods sold/exported to the rest of the world?

Does any country become stronger from importing cheaper goods from others?

Edited December 22, 2013 by meechai

[wilcopops]

weak baht is good for exports - it means that everything in Thailand that is for sale (including tourism -7% of economy) is cheaper for people to buy. Most Thai manufacturing - the biggest sector of the economy - is geared for export - so they get a boost - as do those working for them.

australia's manufauing sector has been struggling for tears with an over-strong dollar

Edited December 22, 2013 by wilcopops

[Naam]

I don't understand how people are better off.The baht loses value so imports cost more, and that includes the raw materials or parts for manufacturing. Look around and everything seems to cost more in the stores. Even the street sellers surprised me with smaller portions, less meat or fish or lower quality in the dish.

The Thais get a raise in the minimum wage but things begin to cost more to pay for it. Go to the market and buy a week's worth of groceries and ask yourself it they cost more.

Maybe I am dreaming, but I think prices are rising as fast as the baht is falling. Maybe someone who already has everything he needs such as a condo and car or scooter and furnishings, etc. will see some temporary relief until he needs to replace it.

Yes, I can buy more baht with dollars, but will those baht buy more in the long term when they are worth less?

Just asking...

in Thailand prices are rising with the Baht getting stronger, prices are rising with the Baht getting weaker and prices are rising with the Baht going sideways.

basis of my claim: 40 (forty!) years of Thailand experience

[i claudius]

I feel so angry at people ... srry

This isn't your country and never will be, why would you care anyway.

Come the revolution (very soon now) they will throw you out without a second thought.

And the girl you sleep with, all she cares about is the money you give her.

I feel sorry for guys like you ,you must live such a sad life,worried you are going to be thrown out of a country and nobody in your life except women who care nothing for you and have always to pay them to sleep with you merry xmas ,

[PattayaPhom]

Inflation has been on a tear in Thailand these last 3 or 4 years with an extremely strong baht.

5 years ago, 3 large chang classic with a bucket of ice was 129bht.

Today it's 139bht ........ not much inflation there.

Diesel 30bht, same now.

Gas cylinder 300bht, 320bht last week.

I'm not seeing this inflation, where are you guys shopping?

Pork 80 Baht kg now 130

Rice 27 Baht now 40

Chicken 85 now 130

Tin tuna 19.50 now 32

Loaf bread 24 now 37....the list is endless of 50% increases over the past 5 years.

[stupot1952]

I thinking the "rice farmer" doesn't give a stuff about the exchange rate.

He mostly works and lives his life without buying imported goods.

Diesel price is fixed by the government, same price today as 5 years ago.

But his land is worth 20x more than 13 years ago, so that might be good for him.

If he is worse off, but it isn't the exchange rate that did it.

As far as I can see worldwide, the only people that are better off now, are the elite few that own the world.

if the bhat is weak let hope its keeps getting weak..................at 53.00 to the £1 its the best its been in years

[tzthib]

If exports of goods and services accounts for a large percentage of the Thai economy, then a strong Thai Baht is a negative. It shouldn't be too hard to understand, really. Thai exports are less competitive at a higher price due to a strong Baht relative to other currencies. Many Thai exports can be easily sourced elsewhere, and if they are only competitive on price the exchange rate becomes very important. Sure, the cost of imported items go up, but this probably does not impact the average Thai. Thailand is always trying to promote domestic goods vs foreign alternatives, so a weak Baht helps in this respect, too. Why do you think foreign goods are subject to such high taxes?

If exports (and tourism) decline, unemployment will rise. Unemployed people do not usually receive incomes. This is a bad thing. Wage growth has more than kept up with inflation, so the "average" Thai is unquestionably better off than they were 10-15 years ago.

By the way, the price you pay for noodles and beer is not a good measure of inflation. The amount of money one guy has in his wallet is also not a valid economic indicator. The amount of money you have in your wallet probably says as much (or more) about you than it does about the macroeconomic environment.

[Lancelot]

Weak currencies always make the local population poorer, be they US, UK, German or Thai citizens. Weak currencies buy less stuff from the countries with strong currencies. A weak currency is good for exporters. Increased exports = more jobs for Thais; therefore, some would argue that it (weak currency) is good for the locals. I don't buy that argument. Give me a currency stronger to the other guys any time

I think most countries prefer a not too strong currency

The strong currency benefits the few locals

Not too strong benefits the many

Remember the majority of Thai's are not reliant on import products from other countries

But they are reliant on selling/exporting theirs.

Did China become strong by having high priced goods sold/exported to the rest of the world?

Does any country become stronger from importing cheaper goods from others?

I see average Thais buying gasoline and diesel fuel all the time A weak baht = increased fuel prices.

Increased fuel prices = increases in many products the average Thai purchases.

[BlueSkyCowboy]

The weaker the Thai Baht, the more Foreign Tourists will come here and spend money to keep Thai Nationals Employed.

Trouble is that my French Champagne and Goose liver are getting much more expensive

[watso63]

As a retiree I am required to have a minimum pension of 65,000 THB/month.

65,000 @ 42 THB/£=£1548

52 THB/£=£1250=£298 or 15496 THB better off/month.

I live quite comfortably on 30,000 THB and even if inflation was 10% that would be an increase of 3,000/month therefore in real terms 12496 THB better off.

One last thing my pension is linked to the UK RPI, so April 2014 I get a 2.7% increase 65000 + 2.7% = 667,500.

I've applied logic and simple maths....or if I've made an error, then I'm sure someone will correct me....again I used 65,000 as this is the MINIMUM monthly requirement.

[tonypace02]

According to Reuters, much of the weakening of the Baht is due to the withdrawal of currency speculators.

[FiftyTwo]

I feel so angry at people ... srry

This isn't your country and never will be, why would you care anyway.

Come the revolution (very soon now) they will throw you out without a second thought.

And the girl you sleep with, all she cares about is the money you give her.

FiftyTwo, obviously you had a bad experience which most likely was due to your own doing!

Take your hatred somewhere else and if you not like it here, go back to wherever you came from!

555

I bet you don't speak any Thai, let lone read or write.

You probably wouldn't last 10 days in a Thai community.

[chiang mai]

According to Reuters, much of the weakening of the Baht is due to the withdrawal of currency speculators.

If you said, "....due to the withdrawal of funds" then I'd say it's probably true, but then you have to ask yourself whether that's a result of the unrest in Bangkok or QE tapering.

But since you said "currency speculators" I wonder which currency you refer to, given that THB is a restricted and not fully convertible currency?

[FiftyTwo]

You'll be OK then as long as your future pension is index linked at a rate that is equal or higher than the inflation rate in Thailand, is it?

My pension is index linked in the UK.

So far it's risen 100% in the last 6 years.

In Thailand, I'm quids in, dunno about the UK though, not been back.

Bought a new house for my misses using a home loan when it was 44 to the UKP, my repayments have dropped 25% in the last 6 months.

[Torrens54]

The weaker the Thai Baht, the more Foreign Tourists will come here and spend money to keep Thai Nationals Employed.

And in another similiar thread, there is a guy who thinks people like me & you are selfish coz we are hoping for the baht to sink. As the guy mentioned, we are only thinking of ourselves.

Sent from my GT-I9200 using Thaivisa Connect Thailand mobile app

Yep, I have to admit to a degree of "self interest" but again, the better the exchange rate, the more I am likely to spend here as an expat, so once again, we Farang help to stimulate the Thai Economy.

[arnold40844]

I feel so angry at people ... srry

This isn't your country and never will be, why would you care anyway.

Come the revolution (very soon now) they will throw you out without a second thought.

And the girl you sleep with, all she cares about is the money you give her.

I feel sorry for guys like you ,you must live such a sad life,worried you are going to be thrown out of a country and nobody in your life except women who care nothing for you and have always to pay them to sleep with you merry xmas ,

Glad someone said it!

[FiftyTwo]

I feel so angry at people ... srry

This isn't your country and never will be, why would you care anyway.

Come the revolution (very soon now) they will throw you out without a second thought.

And the girl you sleep with, all she cares about is the money you give her.

I feel sorry for guys like you ,you must live such a sad life,worried you are going to be thrown out of a country and nobody in your life except women who care nothing for you and have always to pay them to sleep with you merry xmas ,

But no worries from the chucking out.

First because, I will be one of the last told to leave.

Second because, I have plenty of money, and there are plenty more countries for me to try.

What are you gonna do?

Oh, and don't tell me yours is different, not when you can't even talk her language.

[BestBitterPhuket]

The price of commodities are set in foreign currencies, and a falling baht means that Thais get more baht for their rubber, rice, oil, tin, shrimps etc. You can also increase the price of industrial goods for export without increasing the cost for the buyer. Only hose relying on imported goods will suffer. The guys who import materials used in goods to be sold in the local market, will have problems. The thai elite who love their imported goods and foreign holidays will be crying because of the lower baht. Expats paid in baht will also be sour grapes (and might spill their vinegar in thai visa).

[chiang mai]

You'll be OK then as long as your future pension is index linked at a rate that is equal or higher than the inflation rate in Thailand, is it?

My pension is index linked in the UK.

So far it's risen 100% in the last 6 years.

In Thailand, I'm quids in, dunno about the UK though, not been back.

Bought a new house for my misses using a home loan when it was 44 to the UKP, my repayments have dropped 25% in the last 6 months.

"My pension is index linked in the UK.So far it's risen 100% in the last 6 years"!

Index linked to what, the spending power of Russian oligarchs, I mean really!

[Mousehound]

Most countries are pretty well at the mercy of the International scene. If the interest rate goes up then money comes in. If the interest rate goes down money goes away. A strong currency means more imports and less exports. Inflation is usually countered by a rise in the interest rate. So, in Australia for instance, over the last few years we have seen a higher rate of interest than say the USA and money has flowed in. The cost being that many manufacturing business have had it tough - including farmers who rely mostly on exports. As the USA economy strengthens money is flowing away from Australia and the dollar is weakening. This will put the cost of imports up and in this respect it is inflationary. But it will also mean more exports as home products become more competitive. As mentioned above it is all about timing. If the Baht were to crash against other major currencies then this is an opportunity to buy cheaper Thai goods (or assets). The Baht has held up remarkably well, as has the Ausie dollar but what goes up must come down. In my case I hope the Baht falls faster and lower than the $A.

A very strong currency can be a major problem. I remember when North Sea Gas came online in the UK. The Brit pound was so strong it forced many companies out of production. I recall the leader of the opposition at the time calling for the "stuff to be left under the sea as it is crippling the country". The same, to some degree has happened in Australia with the dollar being supported by the mining boom. At the same time the car industry has gone (Toyota will surely follow Holden and Ford) food processing is moving off shore and farms are selling out to offshore interests. Australia, unlike Thailand. has really given it's manufacturing away. I think the future is going to be pretty tough in Australia for the next ten to twenty years. Mines don't employ many people once they are running.