Curious on what standard is the Baht backed on?

[Strangebrew]

I hear all this news of BOT saying the Baht is strong but see all these corrupt failed government schemes losing billions of baht what backs the baht ? Is it rice gold silver gems? There is no real industry other than rice commodity. Tourism surely can't be it because of current political state. As far as gold California produces more than Thailand has in country. So what's is it based on? Lies?

[Thaiberius]

The link below gives details of GDP, unemployment, industries etc. However it is only valid until end 2012.

http://www.gfmag.com/gdp-data-country-reports/163-thailand-gdp-country-report.html#axzz31GtroQcq

[Cheeby Luva]

pussies.

[sdanielmcev]

Currencies are not backed by any goods.

[benalibina]

A currency backed by lies......no lack of imagination on this forum....

[KhunBENQ]

There is no real industry other than rice commodity. Tourism surely can't be it because of current political state.

What a nonsense.

Get informed before writing such statements.

Thailand is neither dependent on rice commodity nor on tourism.

Both make up for a small portion of GDP.

Tourism shrinked about 4% in the last months, after excessive growth in the years before.

As a starter a look to the usual websites would help:

http://en.wikipedia.org/wiki/Economy_of_Thailand

Thailand is a newly industrialized country. Its economy is heavily export-dependent, with exports accounting for more than two-thirds of its gross domestic product (GDP).

The industrial and service sectors are the main sectors in the Thai gross domestic product, with the former accounting for 39.2 percent of GDP. Thailand's agricultural sector produces 8.4 percent of the GDP – lower than the trade and logistics and communication sectors, which account for 13.4 percent and 9.8 percent of GDP respectively.

and so on ...

Edited May 10, 2014 by KhunBENQ

[Gsxrnz]

The THB is backed by the Som Tam index.

The USD is backed by the Apple Pie index,

The GBP is backed by the F&C index.

In other words, every currency is really backed by SFA.

[KhunBENQ]

Another useless thread adding to the cyber garbage pile.

[Cylon]

Backed by the LCG = Lies, corruption, greed,

[Cheeby Luva]

last i looked the vast majority of the SET market cap was PTT and associates. so oil and gas.

Edited May 10, 2014 by Cheeby Luva

[Payboy]

Barfine index.

[Thaiberius]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

[Gsxrnz]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

Edited May 10, 2014 by Gsxrnz

[Thaiberius]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

I don't own a car or property in Thailand. In the absence of a wife or children in the Kingdom I don't see the point in tying up capital in a volatile economy where, I suspect, there will be serious turmoil ahead in the not too distant future. Having said that I am a small investor in the Thai economy but my main income is from outside Thailand.

[Naam]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

[Thaiberius]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

If the pound is strong against the baht then exchanging the opposite way negates the gains. In other words, more baht to buy a pound and less pounds to buy baht.

[trainman34014]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

If you buy a new car in Britain it devalues at 25% per annum but in Thailand it will only devalue by roughly 7% per annum. Property is generally less than a third of British property prices to start with so i think he is still on a winner !

[Gsxrnz]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

Not sure why you're asking Naam.

If a condo was purchased for 2M Baht in Thailand two years ago with money imported from GB at circa 49 it cost GBP40,816.

If that condo was sold today for 2M Baht and the funds repatriated to the UK at circa 55 it would equate to GBP36,363. A loss of 11%.

Ok, not the 15-20% that the poster used but I only emulated his claimed percentage.

(notwithstanding arguments re any real or perceived capital gain, lost opportunity, differential in inflation rates etc.)

[Globalist]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

Not correct for property in general.

Condominiums in Thailand, at least the high-end ones, are internationally traded and thus have only a weak dependency on local currency vs foreign currency exchange rates.

[Gsxrnz]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

Not correct for property in general.

Condominiums in Thailand, at least the high-end ones, are internationally traded and thus have only a weak dependency on local currency vs foreign currency exchange rates.

You do make a valid point.

Most of us expats living here do purchase our 100M+ baht condos on the international market so FX not a problem, especially when paying in the Cayman's with tax free earnings from central Africa.

However there's a severe shortage of anything with suitable parking for the dozen Lambos and Mazeratis, a helicopter pad on the roof and a nearby marina to park the 90 footer.

If you know of any and the vendor is prepared to receive payment in rough diamonds of dubious traceability, please let me know.

Edited May 10, 2014 by Gsxrnz

[Naam]

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

Not sure why you're asking Naam.

If a condo was purchased for 2M Baht in Thailand two years ago with money imported from GB at circa 49 it cost GBP40,816.

If that condo was sold today for 2M Baht and the funds repatriated to the UK at circa 55 it would equate to GBP36,363. A loss of 11%.

Ok, not the 15-20% that the poster used but I only emulated his claimed percentage.

(notwithstanding arguments re any real or perceived capital gain, lost opportunity, differential in inflation rates etc.)

that devaluation applies for most currencies since years. what does not apply is the context "just" and that's why i asked.

just got devalued by 15-20%

[celliluis]

hello,,,

Foreign exchange are not supported by any goods

[alanrchase]

Floated these days, backed by nothing, linked to nothing. As with most currancies vulnerable to speculation.

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[arjunadawn]

Hope I don't get my arse handed to me but think Thai baht based on USD. It's the international currency standard, petrol too. BRICS counties are trying to wrestle this standard away and beginning yo trade in other currencies. Note: USD is pure fiat. It has no associated commodity to back it. My fear is US unending pumping of USD will tragically hurt Thailand as well as the more money in circulation the less value it has. The Creature From Jekyll Island is a great book for grasping the total absurdity of the modern banking cartel.

[KittenKong]

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

April 20, 2013 : 43.67 THB = GBP 1

May 9, 2014 : 55.16 THB = GBP 1

Difference : +24%

OK "just" is a bit vague but I'm prepared to accept that "just" might mean "during the last year or so".

[alanrchase]

Hope I don't get my arse handed to me but think Thai baht based on USD. It's the international currency standard, petrol too. BRICS counties are trying to wrestle this standard away and beginning yo trade in other currencies. Note: USD is pure fiat. It has no associated commodity to back it. My fear is US unending pumping of USD will tragically hurt Thailand as well as the more money in circulation the less value it has. The Creature From Jekyll Island is a great book for grasping the total absurdity of the modern banking cartel.

Don't wish to hand your ar*e to you but if it were based on the Almighty US Dollar the exchange rate with the Almighty US Dollar would not change. look to the Mid East for currancies linked to the Dollar due to oil being priced in said currancy.

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[arjunadawn]

Hope I don't get my arse handed to me but think Thai baht based on USD. It's the international currency standard, petrol too. BRICS counties are trying to wrestle this standard away and beginning yo trade in other currencies. Note: USD is pure fiat. It has no associated commodity to back it. My fear is US unending pumping of USD will tragically hurt Thailand as well as the more money in circulation the less value it has. The Creature From Jekyll Island is a great book for grasping the total absurdity of the modern banking cartel.

Don't wish to hand your ar*e to you but if it were based on the Almighty US Dollar the exchange rate with the Almighty US Dollar would not change. look to the Mid East for currancies linked to the Dollar due to oil being priced in said currancy.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Haha. So that's what my arse looks like! Love it. Yea, I lived in DXB before and dinar tied to dollar. I recall difference now. I stand corrected. For any who read my post, please accept my apologies. Dumbassness on stage. Edited May 10, 2014 by arjunadawn

[farang000999]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

[salavan]

pussies.

crudly put but correct

[arjunadawn]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

Pejorative? "...backed by thin air;" Don't know who you've quoted above.

Money in US not "printed out of thin air"; that's fantasy. It's promissory debt of the American people=coercion. Ron Paul would have been quite perilous for the US and surely it's allies but he was right about one thing, the Fed should have at least one audit in 100years. US Fed is quite relevant as it influences and strong arms central banks throughout the world. They are the same sheet of music conductor. I think this topic interesting, even though I was mistaken about the only reason for the post- what pegs Thai Baht. Thanks for telling me.