Reason the baht is rising.

[StreetCowboy]

...You do understand that THB is a closed currency that can't really be traded outside of Thailand.

presenting facts is a futile attempt. ...

Is that actually true?

According to wikipedia "Controls were broadly lifted on March 3, 2008 and there is now no significant difference between offshore and onshore exchange rates.^[21]"

I still normally transfer currency in as US$, as the Thai baht market is not very big overseas and seems slightly inefficient (big spreads).

SC

[chiang mai]

Since it's forbidden to take more than THB 50,000 out of the country it's almost impossible for overseas banks to accumulate THB in any quantity, orders for large amounts can of course be fulfilled overseas but only via the BOT.

[EBlair48]

Good Googely Moogely ..

I'm writing about the EXCHANGE RATE baht for $ USD The topic is the baht 's EXCHANGE RATE , my comment was how the 27 / 1 USD EXCHANGE RATE was likely vary advantageous to a few people not too long ago. It isn't hard to see why the baht has fallen due to turmoil,

my better question is/ was why was the EXCHANGE RATE so high, so briefly no too long ago ?

[EBlair48]

...You do understand that THB is a closed currency that can't really be traded outside of Thailand.

presenting facts is a futile attempt. ...

Is that actually true?

According to wikipedia "Controls were broadly lifted on March 3, 2008 and there is now no significant difference between offshore and onshore exchange rates.^[21]"

I still normally transfer currency in as US$, as the Thai baht market is not very big overseas and seems slightly inefficient (big spreads).

SC

Right Thank you !!

And what is better when you exchange and then transfer your funds to dollars- 27 baht to the dollar, or 33?

My god this is really just elementary arithmetic.

I'm still waiting for alternate theories on why the baht went to 27 quite suddenly, and briefly, er civility, please without sophomoric name calling, if possible?

[Naam]

...You do understand that THB is a closed currency that can't really be traded outside of Thailand.

presenting facts is a futile attempt. ...

Is that actually true?

According to wikipedia "Controls were broadly lifted on March 3, 2008 and there is now no significant difference between offshore and onshore exchange rates.^[21]"

I still normally transfer currency in as US$, as the Thai baht market is not very big overseas and seems slightly inefficient (big spreads).

SC

it is actually true and the former huge discrepancy between onshore and offshore rates has nothing to do with the (more than a decade old) prevailing restrictions.

for the umpteenth time these are the restrictions:

Dear Client,

Thai Baht Currency Restrictions

Further to the Bank of Thailand’s Measure No. 33/2003 (Additional Measure to Prevent Thai Baht Speculation), which came into effect in October 2003, XYZ Bank, Singapore Branch is subject to restrictions affecting its holdings of Thai Baht currency. These include the following:

Maintaining THB accounts in Thailand for settlement purposes only, where settlement means the settlement of securities transactions and cash payment transactions. The exception is for deposits of a tenor of at least 6 months or more.

Forfeiture of credit interest on its accounts (other than deposits of a tenor of at least 6 months or more)

Ensuring that the aggregated end of day balances for cash accounts with all financial institutions in Thailand do not exceed THB 300 million (the “Daily THB Limit”)

Imposition of deposit charge on THB account balances.

In relation to the Daily THB Limit, XYZ Bank, Singapore Branch will be required to adjust its Thai Baht balances in all its client accounts to be compliant with the permitted level as determined by the Thai authorities on a daily basis. As such accounts may include balances in Thai Baht held on your behalf, it is critical that we are able to adjust client THB balances to ensure compliance.

Accordingly, at any time that you are holding a long position in THB, we reserve the right in our absolute discretion and without prior notice to you to convert your holding of THB, in whole or part, into United States dollars at the prevailing spot rate.

Yours truly,

XYZ Bank, Singapore Branch

[Naam]

I don't have access to Thai bank customer's personal info to offer concrete evidence of such a theory.

( Nor accounts in Dubai, hint- hint )

Perhaps you have other explanations of why it went so high, so briefly, remembering this is Thailand where anti trust is the norm.

You do understand that THB is a closed currency that can't really be traded outside of Thailand.

presenting facts is a futile attempt. the resident eggsburts will insist on manipulation and/or conspiracy no matter whether the Baht strengthens or weakens. the problem is that most of these eggsburts lack even the bare minimum knowledge and experience in financial matters which are beyond ATM fees and basic interest rates of THB and their home currencies. three dozen relevant eggsburts postings per week are evidence for my claim.

But Naam ,your our regular eggsburt are you not

sure! just look up my hundreds of postings which deal with the racist, unjustified and criminal methods to rob poor expats with ATM fees and and other bank charges and last not least the criminals (domestic ones and Dubai situated) who move godzillions of Baht to make it rise or fall.

Edited January 18, 2014 by Naam

[chiang mai]

...You do understand that THB is a closed currency that can't really be traded outside of Thailand.

presenting facts is a futile attempt. ...

Is that actually true?

According to wikipedia "Controls were broadly lifted on March 3, 2008 and there is now no significant difference between offshore and onshore exchange rates.^[21]"

I still normally transfer currency in as US$, as the Thai baht market is not very big overseas and seems slightly inefficient (big spreads).

SC

Right Thank you !!

And what is better when you exchange and then transfer your funds to dollars- 27 baht to the dollar, or 33?

My god this is really just elementary arithmetic.

I'm still waiting for alternate theories on why the baht went to 27 quite suddenly, and briefly, er civility, please without sophomoric name calling, if possible?

Firstly THB didn't climb to 27 suddenly, on 1 July 2012 THB was at 31.55 against USD, over the next ten months is strengthened to 28.76, not a huge amount by an measure. At the time BOT was spending its foreign currency reserves at the rate of around 4 Bill a month to try and weaken THB, when the realization finally hit home that the Feds QE program was likely to end soon and capital outflows started to be seen, THB began to weaken, much to the relief of BOT. In October 2012 BOT reduced the bank rate by a quarter point which further weakened THB and as an aide to exports.

http://www.oanda.com/currency/historical-rates/

http://www.bot.or.th/English/Statistics/EconomicAndFinancial/ExternalSector/Pages/StatInternationalReserves.aspx

[chiang mai]

In anticipation of your next question on this subject, may I suggest you plug the following into your browser and read some of the press articles that I'm not allowed to post here:

"why did THB strengthen to 28"

[MyFriend You]

The baht was over sold, most likely a temporary rally on the way to further weakening. The Central Bank of Thailand has cut interest rate twice recently, from 2.5% to 2%. Over all the Thai economy is slowing and, with foreign central banks slowing the rate of money creation (bond repurchases) I would think that that the Thai Baht will continue to weaken.

Just my SWAG (Simple Wild Assed Guess )

We will know for sure in about six months

I have been studying the baht for 40 years, and predict it will go to 40 Baht to the Dollar on 15 March 2014.............get your transfers ready!!!

[i claudius]

And what will it be to the pound?

[Thai at Heart]

Good Googely Moogely ..

I'm writing about the EXCHANGE RATE baht for $ USD The topic is the baht 's EXCHANGE RATE , my comment was how the 27 / 1 USD EXCHANGE RATE was likely vary advantageous to a few people not too long ago. It isn't hard to see why the baht has fallen due to turmoil,

my better question is/ was why was the EXCHANGE RATE so high, so briefly no too long ago ?

Because the rest of the world was completely in the poop with interest rates at virtually zero and they were printing money hand over fist.

Thailand however was running along with ok 3 to 5% growth and interest rates at 3%.

Usa plans to stop printing money and Thailand is now slowing down. Thailand interest rates down and USA money printing reduced. Whammo

[StreetCowboy]

And what will it be to the pound?

About 30 by weight. Some things don't change, even if we stop using them.

[zeichen]

"27 baht = 1 USD dollar a few months ago for a brief period"

I don't know where you found this quote. I track Thai Baht every single day and have spreadsheets. Perhaps you got some screwy rate at the airport but at Kasikorn bank the lowest it has been since June 2013 is 30.

It has gone between 31-32 up and down for a few months.

It is an advantage for Thailand to keep it low for export purposes. Some countries like China purposely devalue its currency.

[Naam]

"27 baht = 1 USD dollar a few months ago for a brief period"

I don't know where you found this quote. I track Thai Baht every single day and have spreadsheets. Perhaps you got some screwy rate at the airport but at Kasikorn bank the lowest it has been since June 2013 is 30.

It has gone between 31-32 up and down for a few months.

It is an advantage for Thailand to keep it low for export purposes. Some countries like China purposely devalue its currency.

you are right 'zeichen'. no such thing like USD THB 27 since july 2, 1997. a picture says more than 10,000 words.

[Naam]

And what will it be to the pound?

in continental Europe 500 grams (as always without any fluctuation).

[bendejo]

Say what? (see chart, courtesy of oanda.com)

On the other hand, the baht is usually pretty much in lock-step with the Malaysian ringgit, within a few satang (calculation differs by a power of ten). The ringgit has been keeping pace with the baht through all this, so the devaluation is not just Thailand's alone. If you're really curious about what's going on you may want to compare these to the performance of the Chinese currency.

Edited January 19, 2014 by bendejo