Why Does the Thai Baht Continue to be So Strong?

[cigar7]

Why does the Thai baht continue to be so strong against virtually all foreign currencies except the US$?

I see tourism is down from last year, major export prices like rice are down, major investor countries like Russia, have reduced buy power.

[samuijimmy]

Last I looked the other day the US, Canada and Aussie $ had all dropped... two or three baht...

One does have to wonder why, the baht is so strong, for sure~ !

[inzman]

USA has stayed in a range of 32.5 - 32.9 has not dropped significantly in a long time. Other currencies have not been so lucky.

[NeverSure]

I don't see the $USD drop of 2 or 3 baht. I see a recent drop of more like less than 2/10 of a baht, but it's been trading up and down in a narrow range.

I don't know why the baht seems strong either.

[Naam]

the Baht is strong to prove those wrong who claimed a zillion times since a decade "Thailand's economy and its currency will fall into the abyss any time from now... dear God, are you listening to my prayers?"

[Bluetongue]

Could it be that they have large gold reserves and nut much borrowing not that I know these things

[SheungWan]

Could it be that they have large gold reserves and nut much borrowing not that I know these things

No, it appears not.

[i claudius]

No matter what our resident Genius says or anything else but it does seem to track the dollar . please now show me graphs going back 100 years proving it doesnt.

Edited January 14, 2015 by i claudius

[NeverSure]

No matter what our resident Genius says or anything else but it does seem to track the dollar . please now show me graphs going back 100 years proving it doesnt.

Our "resident genius" isn't smart enough to write anything intelligent.

[apetley]

Checkout interest rates in the west and the very real prospect of deflation there and a slowdown in the recovery there goes quite a way in explaining why the bht is where it is.

Edited January 14, 2015 by apetley

[Pib]

Maybe it's because the other currencies like the Euro and Ruble (just to mention two) have got weaker in comparison to the baht (and other currencies) since the Euro and Ruble are having economic problems right now.

[slipperylobster]

Thailand has been super stable, since Prayuth took over. I don't see financial disaster/bankruptcy or collapse of the economy, on the horizon. Thus, a stable baht.

[chris2004]

Maybe because Thailand doesn't have a massive fiscal deficit, or a massive National Debt and is not printing billions of funny money.

[SheungWan]

Re: I see tourism is down from last year, major export prices like rice are down, major investor countries like Russia, have reduced buy power.

You might be confusing Russian FDI with Russian property purchases by individuals.

[swissie]

Next to short term measures and market influences. the "Global-Investors-Community" is starting to take a long-term look at things:

Like: Where can long term growth of the world-economy be expected?

- In Europe & USA ? Hardly. (Read up on the fall of the roman-empire).

- In south-america ? (They have tried too many times and failed).

- Africa ? Hardly. ( They head for Europe, in hope to gain "Refugee-Status")

What's left? S/E Asia ! The hunger of China (the Locomotive) for raw materials and knowledge will remain as a "suction -pump" for the rest of S/E Asia for at least 20 more years.

Since Thailand is within the reach of this "suction-pump" it will be part of it (rightly so or not)

.

THIS IS WHY THE THAI-BAHT IS STRONG. Other reasons for the strength of the Thai-Baht, I have so far not been able to isolate.

Cheers.

[Pib]

Next to short term measures and market influences. the "Global-Investors-Community" is starting to take a long-term look at things:

Like: Where can long term growth of the world-economy be expected?

- In Europe & USA ? Hardly. (Read up on the fall of the roman-empire).

- In south-america ? (They have tried too many times and failed).

- Africa ? Hardly. ( They head for Europe, in hope to gain "Refugee-Status")

What's left? S/E Asia ! The hunger of China (the Locomotive) for raw materials and knowledge will remain as a "suction -pump" for the rest of S/E Asia for at least 20 more years.

Since Thailand is within the reach of this "suction-pump" it will be part of it (rightly so or not)

.

THIS IS WHY THE THAI-BAHT IS STRONG. Other reasons for the strength of the Thai-Baht, I have so far not been able to isolate.

Cheers.

Don't drag the USA into the fall of the Roman Empire...the USA had nothing to do with it.

[swissie]

Next to short term measures and market influences. the "Global-Investors-Community" is starting to take a long-term look at things:

Like: Where can long term growth of the world-economy be expected?

- In Europe & USA ? Hardly. (Read up on the fall of the roman-empire).

- In south-america ? (They have tried too many times and failed).

- Africa ? Hardly. ( They head for Europe, in hope to gain "Refugee-Status")

What's left? S/E Asia ! The hunger of China (the Locomotive) for raw materials and knowledge will remain as a "suction -pump" for the rest of S/E Asia for at least 20 more years.

Since Thailand is within the reach of this "suction-pump" it will be part of it (rightly so or not)

.

THIS IS WHY THE THAI-BAHT IS STRONG. Other reasons for the strength of the Thai-Baht, I have so far not been able to isolate.

Cheers.

Don't drag the USA into the fall of the Roman Empire...the USA had nothing to do with it.

ESPECIALLY would I want to drag the USA into this scenario.

- Geographical over expansion.

- Financial over expansion. (The astronomical budget-deficits are mostly covered by the rest of the world) and not by US-Citizens and their meager savings.

- The Influx of people from south of the Rio Grande will eventually have the same effect as 1600 years ago has happened the roman- empire.

Not ever have I seen such striking parallels in history as compared to the US of today versus the "the fall of the roman empire".

Same story, same outcome.. Except this time it happens in our lifetime.

Cheers.

[Pib]

I knew Obama looked a lot like Caesar....even FoxNews says so.

[Naam]

No matter what our resident Genius says or anything else but it does seem to track the dollar . please now show me graphs going back 100 years proving it doesnt.

here's a fact to enjoy with your evening drink: TT rate GBPTHB 49.52

for more information ask NeverSure to convert into shrinkheads/per capita

[i claudius]

What makes you think you are out resident genius?

[elgordo38]

Last I looked the other day the US, Canada and Aussie $ had all dropped... two or three baht...

One does have to wonder why, the baht is so strong, for sure~ !

I to am watching the Canadian dollar bleed against the Thai baht and am puzzled. The Set is holding its own as well. I think the baht is linked to the American dollar in some way. The economy here does not look all that promising. The yen, euro, ruble have dropped so that will mean a big drop in tourism. A lot of the car manufacturers are looking elsewhere to set up shop consumers are loaded with debt. Chiang Mai is overbuilt so I would presume the rest of the country is to. We have no water for all the new buildings going up and God knows where the sewage is going I even hate to speculate about this one. I say a prayer each time I pull the handle. Pollution is building and they want to build more coal fired power plants in the future. My crystal ball imploded. The whole world is crazy.

[Bakeman]

Viagra!

On a serious note all countries will fluctuate through the cycles of economies. I see a good future for the dollar especially after the current administration moves on.

[cigar7]

A year ago the US$ was 32.4b, the Euro 44b, China 5.25b, British 53b, CAD$ 30b, AUD 29.2b.

Now US$ is 32.7b, the Euro is 38.5b, China is 5.25b, British 49.6b, CAD$ is 27b, AUD 26.5b

Only US$ and China are holding steady.

[ericthai]

Next to short term measures and market influences. the "Global-Investors-Community" is starting to take a long-term look at things:

Like: Where can long term growth of the world-economy be expected?

- In Europe & USA ? Hardly. (Read up on the fall of the roman-empire).

- In south-america ? (They have tried too many times and failed).

- Africa ? Hardly. ( They head for Europe, in hope to gain "Refugee-Status")

What's left? S/E Asia ! The hunger of China (the Locomotive) for raw materials and knowledge will remain as a "suction -pump" for the rest of S/E Asia for at least 20 more years.

Since Thailand is within the reach of this "suction-pump" it will be part of it (rightly so or not)

.

THIS IS WHY THE THAI-BAHT IS STRONG. Other reasons for the strength of the Thai-Baht, I have so far not been able to isolate.

Cheers.

You might want to check on the hunger of China. China imports are down. Cement, iron ore, gypsum etc are all down, Gold is up. I have been working with China importers for over 10 years and the last two years imports keep going down and down. Steel demand in china is way down, half the steel mills in China are at less than 50% production capacity. Thailand does export to China but just about the same percentage as it exports to the USA and Japan. I don't see china increasing any imports from Thailand, China is looking to export more to Thailand and use Thailand as a cheaper way for South china to get their products out to the world.

[Greenhill]

I would ask this question to the Bank of Thailand!! I would imagine there's quite a bit of manipulation going on by them!!?? Only conjecture, of course!! Impossible to get proof!!

[Sandman77]

It's so strong because we all spend to much money here! Now 5 years ago 2 people could live for the price one pay now!

4000 Bhat a minimum budget in Pattaya a day or in every other city

[Thai at Heart]

For the GBP did u see the inflation numbers?

You reckon they will push up interest rates soon?

45 to the GBP beckons. Keep that stimulus coming.

[SheungWan]

Next to short term measures and market influences. the "Global-Investors-Community" is starting to take a long-term look at things:

Like: Where can long term growth of the world-economy be expected?

- In Europe & USA ? Hardly. (Read up on the fall of the roman-empire).

- In south-america ? (They have tried too many times and failed).

- Africa ? Hardly. ( They head for Europe, in hope to gain "Refugee-Status")

What's left? S/E Asia ! The hunger of China (the Locomotive) for raw materials and knowledge will remain as a "suction -pump" for the rest of S/E Asia for at least 20 more years.

Since Thailand is within the reach of this "suction-pump" it will be part of it (rightly so or not)

.

THIS IS WHY THE THAI-BAHT IS STRONG. Other reasons for the strength of the Thai-Baht, I have so far not been able to isolate.

Cheers.

Don't drag the USA into the fall of the Roman Empire...the USA had nothing to do with it.

ESPECIALLY would I want to drag the USA into this scenario.

- Geographical over expansion.

- Financial over expansion. (The astronomical budget-deficits are mostly covered by the rest of the world) and not by US-Citizens and their meager savings.

- The Influx of people from south of the Rio Grande will eventually have the same effect as 1600 years ago has happened the roman- empire.

Not ever have I seen such striking parallels in history as compared to the US of today versus the "the fall of the roman empire".

Same story, same outcome.. Except this time it happens in our lifetime.

Cheers.

It is difficult to know whether you have read any texts whatsover on the either the rise or the fall of the Roman Empire, but for one Gibbon ascribes a serious element of the decline to the rise of Christianity. I guess Emperor Constantine has got a lot to answer for. And for you today it will be the Mexican hordes. Hey ho. Such are the wonderful insights on the strength or otherwise of the Thai Baht.

Edited January 14, 2015 by SheungWan

[Mojomor]

Simple enough really, lots of tourists now in high season spending foreign money, which has to be converted into Thai baht. Simple supply/demand market.

All western currencies are lower. When the low season kicks in shortly, things will improve.

[gk10002000]

Maybe because Thailand doesn't have a massive fiscal deficit, or a massive National Debt and is not printing billions of funny money.

I agree that the lack of a huge fiscal deficit or national debt is the key. I don't think Thailand is going to grow much for a while. Their political situation is just to unstable for that. But I don't see it tail spinning downward either. Probably will be business as "usual", in the Thai sense of the word anyway. Oh, and the ladies really are wonderful