Baht still strong ..why ?

[rocky123]

UK pound droping last few days even with the UK economy picking up and Thailand in rag order. ???

[chiang mai]

Thank god, at last, another GBP/THB thread, I was starting to get withdrawal symptoms!

[OMGImInPattaya]

Thank god, at last, another GBP/THB thread, I was starting to get withdrawal symptoms!

Yes, the Brits are still salivating for the 90 baht to the pound days...ain't ever gonna happen again boys.

[Pattaya28]

Hold back !! Hold back !!

Wait.

GBP will be up to 70+ baht soon.

[chiang mai]

Of course it will dear, of course it will!

[SidJames]

It still shouldn't be sitting where it is & could be 500 points weaker.

World markets of all types hate indecision & will flee it so the present political unrest should be causing more distress in forex than it currently is in my opinion

[chiang mai]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

[i claudius]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So you reckon BOT is buying baht? doesnt look like it.

[SantiSuk]

Potential sellers of baht are holding onto their baht until they get the rate they want. "Don't care what the market says, I'm hanging on for a better deal". It's the Thai way in any transaction!

[surangw]

riots cause inflation,

[chiang mai]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So you reckon BOT is buying baht? doesnt look like it.

I don't know how you would know that since the BOT report on their foreign currency reserve levels is always two weeks behind! Previously however they do appear to have spent around USD 1 billion since 6 December.

[Woody1]

Potential sellers of baht are holding onto their baht until they get the rate they want. "Don't care what the market says, I'm hanging on for a better deal". It's the Thai way in any transaction!

Unless a charming Tazmanian offers them a great deal!!!

[Basil B]

The problem with those who are hoping the Thai Baht will fall further is Thailand has been in this situation too many times and unless there is a big run on the banks or BoT starts printing money like there is no tomorrow the Baht is not going to get much weaker.

As for the Great British Pound, thing look promising but it will take time, and do not forget we have general election in 16 months and anything can happen just imagine a UKIP/Labour coalition...

[tropo]

The problem with those who are hoping the Thai Baht will fall further is Thailand has been in this situation too many times and unless there is a big run on the banks or BoT starts printing money like there is no tomorrow the Baht is not going to get much weaker.

As for the Great British Pound, thing look promising but it will take time, and do not forget we have general election in 16 months and anything can happen just imagine a UKIP/Labour coalition...

It's probably nonsense anyway, but if a government tried to print their way out of trouble they would devalue the currency, not strengthen it.

I reckon the best answer above is that the Thai currency is not a major trading currency so doesn't see major fluctuations like some heavily traded currencies do. Currency traders aren't interested in stable currencies that don't move.

[chiang mai]

It looks like the Pound strengthened a little yesterday on back of the news that the IMF has upgraded the UK growth forecast, that seems to account for the slight strengthening of GBP against THB.

[morrobay]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So assuming the baht is being artificially kept strong by the BOT, how sustainable is that ?

[sam sen]

they're spending their money on baht which is why they cant pay the farmers

[chiang mai]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So assuming the baht is being artificially kept strong by the BOT, how sustainable is that ?

I don't believe there's a significant amount of intervention by BOT taking place, I think that what we're seeing is the normal dips and bumps of the way the currency is at present, mostly what we're seeing is the movement of THB against the strengthening and weakening of GBP and USD.

But to more directly answer your question, reserves were at USD 172 bill. in October, in December they were USD 167 bill, since 6 December through 10 January the value of the reserves has decreased by less than USD 1 bill.

[Rimmer]

Moved to the Banking Forum

[i claudius]

The problem with those who are hoping the Thai Baht will fall further is Thailand has been in this situation too many times and unless there is a big run on the banks or BoT starts printing money like there is no tomorrow the Baht is not going to get much weaker.

As for the Great British Pound, thing look promising but it will take time, and do not forget we have general election in 16 months and anything can happen just imagine a UKIP/Labour coalition...

It is too terrible to even imagine ,in a few years you would only have immegrants in the country working and the pound would be toast ,and all the Labour voters would still be blaming Maggie for all their problems

[SheungWan]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So assuming the baht is being artificially kept strong by the BOT, how sustainable is that ?

Central bank intervention is not 'artificial'.

[cashpower]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

[MrWorldwide]

The UK is 'too big to fail' - Iceland wasnt so blessed:

http://en.wikipedia.org/wiki/2008%E2%80%9311_Icelandic_financial_crisis

[chiang mai]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

I agree with everything except the words "continue to", of late GBP has been the star performing, much to the surprise of many some a few me.

[Naam]

they're spending their money on baht which is why they cant pay the farmers

a theory worth a nomination for the Gobble Prize in Economics

[SheungWan]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

You were probably predicting the same 3 years ago.

[Asiantravel]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

You were probably predicting the same 3 years ago.

Just because he was incorrect about the timing doesn't mean he is incorrect about the economic fundamentals? Great Britain is no longer anywhere near being great

[SheungWan]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

You were probably predicting the same 3 years ago.

Just because he was incorrect about the timing doesn't mean he is incorrect about the economic fundamentals? Great Britain is no longer anywhere near being great

My London property is doing great in the present. He can fantasize about the future until the cows come home.

[morrobay]

THB is a very small currency, an exotic and one that is not freely convertible, control of the currency is therefore solely in BOT and not international markets per se.

So assuming the baht is being artificially kept strong by the BOT, how sustainable is that ?

Central bank intervention is not 'artificial'.

Well its not fundamental. If central bank buys its countries currency to strengthen it. Or the Fed prints money to weaken its currency, both are artificial compared to fundamentals.

[Basil B]

the GBP will continue to weaken as Britain advances towards becoming a banana republic. I predict that in 3 years time the GBP will be valued at 3 bananaskins and a rusty nail.

You were probably predicting the same 3 years ago.

Just because he was incorrect about the timing doesn't mean he is incorrect about the economic fundamentals? Great Britain is no longer anywhere near being great

I think I would rather rely on CEBR (Centre for Economic and Business Research) for predicting the economical future of the UK Than cashpower & asiatravel.

http://www.theguardian.com/business/2013/dec/26/britain-europe-top-economy-by-2030