Baht still strong ..why ?

[chiang mai]

Bloomberg journo's don't distinguish between the components that comprise "emerging markets", they are not all the same.

So what are the components in Thailand,, besides conspiracy,that set it apart from other regional emerging markets. That can explain why the baht is still strong

If it is being artificially supported by the central bank. Eventually fundamentals will prevail. Also is the exchange rate/ inflation ratio in accord here ?.

Closed currency, high foreign currency reserves, ample cheap labor.

Unsure of your meaning regarding inflation/exchange rate. Exchange rate is a function of several factors, not least of which is the current central bank rate but is also a policy response to inflation.

[morrobay]

Bloomberg journo's don't distinguish between the components that comprise "emerging markets", they are not all the same.

So what are the components in Thailand,, besides conspiracy,that set it apart from other regional emerging markets. That can explain why the baht is still strong

If it is being artificially supported by the central bank. Eventually fundamentals will prevail. Also is the exchange rate/ inflation ratio in accord here ?.

Closed currency, high foreign currency reserves, ample cheap labor.

Unsure of your meaning regarding inflation/exchange rate. Exchange rate is a function of several factors, not least of which is the current central bank rate but is also a policy response to inflation.

Well Im not an economist but my brother is: Masters, 10 years citibank, Zurich, Paris. And for the last 10 a banker in Luxembourg + CEO of an European fund admin.:

"Central banks have deep pockets. So they can affect exchange rates over short term. However long term fundamentals take over. Remember exchange rates are ratios - high inflation

in your country will weaken your currency relative to a low inflation country".

[chiang mai]

Bloomberg journo's don't distinguish between the components that comprise "emerging markets", they are not all the same.

So what are the components in Thailand,, besides conspiracy,that set it apart from other regional emerging markets. That can explain why the baht is still strong

If it is being artificially supported by the central bank. Eventually fundamentals will prevail. Also is the exchange rate/ inflation ratio in accord here ?.

Closed currency, high foreign currency reserves, ample cheap labor.

Unsure of your meaning regarding inflation/exchange rate. Exchange rate is a function of several factors, not least of which is the current central bank rate but is also a policy response to inflation.

Well Im not an economist but my brother is: Masters, 10 years citibank, Zurich, Paris. And for the last 10 a banker in Luxembourg + CEO of an European fund admin.:

"Central banks have deep pockets. So they can affect exchange rates over short term. However long term fundamentals take over. Remember exchange rates are ratios - high inflation

in your country will weaken your currency relative to a low inflation country".

The key part in all of that is, "closed currency", THB is not fully convertible hence it's value is controlled almost exclusively by BOT and not by overseas markets/investors.

[Naam]

Bloomberg journo's don't distinguish between the components that comprise "emerging markets", they are not all the same.

So what are the components in Thailand,, besides conspiracy,that set it apart from other regional emerging markets. That can explain why the baht is still strong

If it is being artificially supported by the central bank. Eventually fundamentals will prevail. Also is the exchange rate/ inflation ratio in accord here ?.

Closed currency, high foreign currency reserves, ample cheap labor.

Unsure of your meaning regarding inflation/exchange rate. Exchange rate is a function of several factors, not least of which is the current central bank rate but is also a policy response to inflation.

Well Im not an economist but my brother is: Masters, 10 years citibank, Zurich, Paris. And for the last 10 a banker in Luxembourg + CEO of an European fund admin.:

"Central banks have deep pockets. So they can affect exchange rates over short term. However long term fundamentals take over. Remember exchange rates are ratios - high inflation

in your country will weaken your currency relative to a low inflation country".

if you got that from your brother i wonder where he did his "master's"

[morrobay]

^ U.C. Santa Cruz B.S. Honors. Have to check on masters. What is your question on above so I can relate it to him for a reply.

[Naam]

^ U.C. Santa Cruz B.S. Honors. Have to check on masters. What is your question on above so I can relate it to him for a reply.

i don't have a question but i challenge the statement

high inflation in your country will weaken your currency relative to a low inflation country"

there are multiple examples which render this generalising statement null and void. one of the examples is Thai Baht. exchange rates are influenced by more than a dozen totally different factors.

Edited February 2, 2014 by Naam

[mmh8]

I heard the BOT read TV and base all exchange rates on whims depending on how pleased or not they are with a particular poster and poster's nationality

[chiang mai]

I heard the BOT read TV and base all exchange rates on whims depending on how pleased or not they are with a particular poster and poster's nationality

Correct, not a lot of people know that.

[i claudius]

I heard the BOT read TV and base all exchange rates on whims depending on how pleased or not they are with a particular poster and poster's nationality

Correct, not a lot of people know that.

Well i wish they would listen to me ,the pound is droping and i want it to rise.

[chiang mai]

I heard the BOT read TV and base all exchange rates on whims depending on how pleased or not they are with a particular poster and poster's nationality

Correct, not a lot of people know that.

Well i wish they would listen to me ,the pound is droping and i want it to rise.

What can I say!

[Naam]

meanwhile in Thailand...

$32.68000
€44.06125
£53.13625

[Naam]

I heard the BOT read TV and base all exchange rates on whims depending on how pleased or not they are with a particular poster and poster's nationality

Correct, not a lot of people know that.

Well i wish they would listen to me ,the pound is droping and i want it to rise.

i wish my wife would listen to me. instead of a rising Pound i'd prefer a mia noi with huge big knockers

[chiang mai]

A good assessment:

"So this recent emerging market volatility shouldn’t weigh too heavily on UK growth – as long as it doesn’t spark a fully blown global systemic crisis as it did back in 1997.

I have many issues with the unbalanced, debt-fuelled nature of this British recovery, given that real wages are still falling and capital investment remains painfully low. But, for now, we’re relatively insulated from the slowdown of the Eastern giants.

Such countries are, anyway, in a much better state than they were back in the late-1990s. The large emerging markets generally have much stronger government balance sheets, far less consumer debt and many times more reserves than their Western counterparts.

Their underlying economies, with their younger populations and fast-rising productivity will, despite this market wobble, out-perform Western nations for decades to come. This is the economic mega-trend of our age and a few thrills and spills on what remain nascent and shallow frontier stock markets won’t change that".

http://www.telegraph.co.uk/finance/comment/liamhalligan/10626360/Liam-Halligan-Judges-of-Karlsruhe-threaten-to-re-open-eurozone-crisis.html