Urgent meet sought on Thai Baht

webfact · January 20, 2015

BAHT
Urgent meet sought on baht
Petchanet Pratruangkrai
The Nation

Isara

BANGKOK: -- In the wake of global currency volatility, the Board of Trade of Thailand and the Thai Chamber of Commerce will soon call for a meeting with the Bank of Thailand to discuss currency risk and hear the bank's views on how to balance the rate of the baht to ensure benefits for exports, imports and investment.

Isara Vongkusolkit, chairman of the two private-sector bodies, yesterday said exchange-rate volatility around the world - and the weakening of the euro and the movement of competitors' currencies, in particular - had created huge concern in the business sector, especially among exporters.

"Comparing the baht with other currencies, and particularly rival exporting nations, the unit has depreciated slightly, while others have been weakening significantly. This has impacted Thai export competitiveness. Global currencies in many countries, and the Russian ruble and the European Union's euro in particular, could continue to weaken and affect Thai trade significantly in the future," said Isara.

However, he declined to comment on what is an appropriate rate for the baht as far as exporters are concerned, saying that the authorities need to closely monitor not only exports, but also imports and investment, as this year the government plans to start many infrastructure investment projects.

He said private enterprises wanted to hear what the central bank had to say about its strategies and measures for dealing with the prevailing volatility in the currency markets.

The private sector also wants the authorities to balance benefits for the real sector in terms of exports, imports and investment, he added.

According to a report by the chamber, the baht weakened 0.49 per cent over the course of last year, from 32.86 against the US dollar to 32.70.

However, some of Thailand's key export rivals saw much larger depreciations in the same period, such as the Malaysian ringgit, at 6.28 per cent, the Singaporean dollar, at 4.41 per cent, the Indonesian rupiah, at 2.22 per cent, and the yen, which fell 11.86 per cent against the greenback during the year.

Isara said that in regard to the currency issue, the board and the chamber only wanted to share ideas about the impact of global volatility and exchange views with the central bank on how to balance the baht's exchange rate and ensure Thailand's competitiveness.

Meanwhile, the private sector would also like the government to resume talks on a free-trade agreement with the EU soon, as clinching such a deal would enhance Thai export competitiveness in relation to the EU market, said the chairman.

Since the EU ended the Generalised System of Preferences (GSP) for 6,700 Thai products, many exporters have started to feel the effects of higher import tariffs.

Although some products still receive tariff exemption for a period, enterprises see a Thai-EU free-trade pact helping to ensure sustainable export growth to the EU.

The Commerce Ministry has forecast that the top 18 products exported from Thailand to the EU will face a combined loss of US$86.88 million (Bt2.84 billion) this year from the higher tariff rates in the absence of the GSP privilege.

Products that will be largely impacted are shrimp, as the tariff rate has been increased from zero to 7-20 per cent, while for automobiles the hike is from 0-15.4 per cent to 3.5-22 per cent, and for rubber tyres from zero to 4.5 per cent.

In addition, Isara said goods prices could be reduced in the near future following the fall in the price of oil, although businesses may need time to clear their stocks first.

Vichai Assarasakorn, vice chairman of the chamber, warned enterprises to closely monitor the global economic trend amidst currency volatility and unstable economic growth in many countries.

Source: http://www.nationmultimedia.com/business/Urgent-meet-sought-on-baht-30252321.html

-- The Nation 2015-01-21

apetley · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

Diplomatico · January 21, 2015

^^ Yeah, you beat me to it. Second article I've seen where the principals don't know the difference between an appreciating and a depreciating currency.

All of the moaning about wanting tax breaks from the EU is laughable - Thailand taxes the hell out of just about anything that comes into the country, yet expects other countries to ignore their protectionist policies.

maidee · January 21, 2015

and what is happening to the poor euro ...

ChrisY1 · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

Crap journalists!

circusman · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

BATH ? who writes this crap ?

johnmcc6 · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

green job · January 21, 2015

and what is happening to the poor euro ...

The End of the Euro is getting close...

Berkshire · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

All true. Can't blame Thailand for EU's own mismangement.

green job · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

At last someone on TV that knows and tells the truth. Well said.

Suradit69 · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

and what is happening to the poor euro ...

Yes, economically speaking, the US is the best house in a bad neighborhood, Japan is teetering on the brink of something unpleasant, China is still growing nicely, but slowing down nonetheless and Europe is a mess & the Eurozone collapsing ... but the Thai Visa bar stool economic experts seem to think the most important thing about the whole article is that some junior reporter for a mediocre publication can't differentiate between "appreciating" and "depreciating," words in his second language.

Thai bashing before all else. The old dears are in nitpicking heaven.

Suradit69 · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

At last someone on TV that knows and tells the truth. Well said.

Sounds like something "borrowed" from what Jacques Delors already said ... or maybe Jacques borrowed it from Johnmcc6.

apetley · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?
BATH ? who writes this crap ?

Spellchecker misfire

apetley · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

and what is happening to the poor euro ...

Yes, economically speaking, the US is the best house in a bad neighborhood, Japan is teetering on the brink of something unpleasant, China is still growing nicely, but slowing down nonetheless and Europe is a mess & the Eurozone collapsing ... but the Thai Visa bar stool economic experts seem to think the most important thing about the whole article is that some junior reporter for a mediocre publication can't differentiate between "appreciating" and "depreciating," words in his second language.

Thai bashing before all else. The old dears are in nitpicking heaven.

What is wrong with expecting a journalist who is writing about economics to get the very basics correct?

It is not Thai bashing it is highlighting the pathetic state of journalism when all the OP appears to be is a cut and paste of a Govt press release.

green job · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

At last someone on TV that knows and tells the truth. Well said.

Sounds like something "borrowed" from what Jacques Delors already said ... or maybe Jacques borrowed it from Johnmcc6.

Yes,,,,, But true,,,,,,Downfall of the fourth reich.

Rajhulmaheesh · January 21, 2015

Why dont govts balance their budgets and let the currency fall where it falls. Markets do work.

Theres a hot babe on cnbc who think quan. easing to the umpteenth degree has worked.in usa....lol(shes orgasmic when touting obama). All its done is make rich people richer.. Nothing to help the economy as a whole.

You want economic growth make govt smaller.

metisdead · January 21, 2015

A containing containing content as well as a link to Bangkok Post has been removed:

26) The Bangkok Post and Phuketwan do not allow quotes from their news articles or other material to appear on Thaivisa.com. Neither do they allow links to their publications. Posts from members containing quotes from or links to Bangkok Post or Phuketwan publications will be deleted from the forum.

Diplomatico · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

and what is happening to the poor euro ...

Yes, economically speaking, the US is the best house in a bad neighborhood, Japan is teetering on the brink of something unpleasant, China is still growing nicely, but slowing down nonetheless and Europe is a mess & the Eurozone collapsing ... but the Thai Visa bar stool economic experts seem to think the most important thing about the whole article is that some junior reporter for a mediocre publication can't differentiate between "appreciating" and "depreciating," words in his second language.

Thai bashing before all else. The old dears are in nitpicking heaven.

Guess I missed the part of the article that talks about the US, China, and Japan....oh wait, that's because it didn't.

GAZZPA · January 21, 2015

^^ Yeah, you beat me to it. Second article I've seen where the principals don't know the difference between an appreciating and a depreciating currency.

All of the moaning about wanting tax breaks from the EU is laughable - Thailand taxes the hell out of just about anything that comes into the country, yet expects other countries to ignore their protectionist policies.

You're right, but at least now the EU and the US have pulled most of the GSP benefits.. Now Thailand has to compete like anyone else (which of course it can't do as there seem to be many fingers in the industry pies raising costs significantly) In short the tax benefits went into the coffers of the big wigs!

At least in this article someone has recognised the EU drop in GSP but no mention of the US? Also I dont believe for a second the losses quoted.

Thailand has lost GSP over nearly ALL of its product ranges,, that means that anything that goes into the EU or the USA in any significant volume now attracts full duty,

Its a big problem, huge problem. Country would have to seriously improve business practices and any corruption adding to costs would need to be squashed for Thai prices to compete,,, can't really see that,,,

Time Traveller · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

BATH ? who writes this crap ?

I couldn't understand what your comment is, so I guessed you're complaining about the word "BATH" (the Thai currency that is sometimes written as Baht). Well BATH is also a correct way to write it in English, since the transliteration of the word บาท last letter to English can be written as TH.

ThePlant · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

and what is happening to the poor euro ...

Yes, economically speaking, the US is the best house in a bad neighborhood, Japan is teetering on the brink of something unpleasant, China is still growing nicely, but slowing down nonetheless and Europe is a mess & the Eurozone collapsing ... but the Thai Visa bar stool economic experts seem to think the most important thing about the whole article is that some junior reporter for a mediocre publication can't differentiate between "appreciating" and "depreciating," words in his second language.

Thai bashing before all else. The old dears are in nitpicking heaven.

Wouldn't you think in an article about the strength or otherwise of a currency such terms are important?

Nitpicking indeed by the apologist supreme.....

Daniel Boon · January 21, 2015

this is not USA bashing ... the US$ is worth less than toilet paper (there is so much printed) and being fiat currency and considering the earning ability and time frame required to do it, the USA will NEVER be able to buy its way back into the financial system ...

There have been several bourses flagged over the year and the Euro is the most prominent and successful (of course they are playing with the value, if the US$ were to be worthless, then any exports are far cheaper and all monies owed will never be paid back) ... and now that the Russia has cranking up another alternative world currency (the BRIC - Brasil, Russia, India and China), Thailand and other 'allies' carrying this junk currency will be burned big time ...

The USA is far from the best house in a bad neighborhood ... the analogy better suited, is to buy the cheapest house in the dearest street; infrastructure in Japan is modern whereas mcuh of America's infrastructure is past it's use by date and in various states of collapse ... cities and even states are bankrupt ...

spidermike007 · January 21, 2015

32.86 to 32.7 is a strengthening of the bath not weakening. Who writes this crap?

It was down to 33.10 or so, a few days ago. Now the baht is at around 32.55. That is a strengthening, is it not? The baht is stronger than other neighboring currencies. Any ideas why? Inflows? The dollar has been getting stronger against most currencies lately. But, not the baht. What is up with that?

johnmcc6 · January 21, 2015

The Euro was doomed from the very start. How could anyone create a currency whith all the member states having different economies, pension plans all with different balance sheets and cultures? The E U is destroying Europe with it's grand plans to create a united states Europe all run by representatives unelected by the people. It has created many problems with the open migration rules. Germany now needs to raise new tax's to pay for bailing out failed states like Greece and Spain the most obvious examples.The latest move by Switzerland is the next sign of bad things to come for E U. So those wiser than I can tell me where I am wrong. but it seems to me the writing has been on the wall for a long time now. People are over taxed and going in the streets to protest the austerity measures created by the failure of the E U..I hope I am proven wrong. We shall soon see.

At last someone on TV that knows and tells the truth. Well said.

Sounds like something "borrowed" from what Jacques Delors already said ... or maybe Jacques borrowed it from Johnmcc6.

Never heard of jacques Delors??? I have family in Germany. I am influenced a lot by Martin Armstrong if anyone. Google Armstrong economics for interesting reads on the whole deal.

green job · January 21, 2015

this is not USA bashing ... the US$ is worth less than toilet paper (there is so much printed) and being fiat currency and considering the earning ability and time frame required to do it, the USA will NEVER be able to buy its way back into the financial system ...

There have been several bourses flagged over the year and the Euro is the most prominent and successful (of course they are playing with the value, if the US$ were to be worthless, then any exports are far cheaper and all monies owed will never be paid back) ... and now that the Russia has cranking up another alternative world currency (the BRIC - Brasil, Russia, India and China), Thailand and other 'allies' carrying this junk currency will be burned big time ...

The USA is far from the best house in a bad neighborhood ... the analogy better suited, is to buy the cheapest house in the dearest street; infrastructure in Japan is modern whereas mcuh of America's infrastructure is past it's use by date and in various states of collapse ... cities and even states are bankrupt ...

The Euro is almost finished thats the truth, The swiss banks and investors are and have been surviving on the gold tooth fillings etc deposited by WW2 Germany ,now all is running out,and fast. The rot has set in,Watch and Wait.

chickenrunCM · January 21, 2015

Omg not the Euro finish, Swisserland will get 10% up unemployment, they have an export economic what went up 30% over night to the euro, they have the problem not the EU

chickenrunCM · January 21, 2015

Omg not the Euro finish, Swisserland will get 10% up unemployment, they have an export economic what went up 30% over night to the euro, they have the problem not the EU

chickenrunCM · January 21, 2015

Why thailand should have any benefits in export to EU? If you bring over products from the EU youhave to pay 3 times more than in europe. THAILAND SHOULD GET THE SAME TAXRATES THEY CHARGE!

chickenrunCM · January 21, 2015

I sold my car in EU before moved to Thailand may be 30% under market price for 2000 Euro, to buy exactly the same car in Thailand i habe to spend minimum 15 to 22000 Euro, you dong believe? Look for MX5 1991 good condition prices are 5 times higher than in the EU

green job · January 21, 2015

I sold my car in EU before moved to Thailand may be 30% under market price for 2000 Euro, to buy exactly the same car in Thailand i habe to spend minimum 15 to 22000 Euro, you dong believe? Look for MX5 1991 good condition prices are 5 times higher than in the EU

And? What do you do? easy buy a car made in Thailand Toyota is a far better car than say BMW or price and value for money better than Benz ( I ran both for years in Europe ) Give me a Jap car made in Thailand any day. much much cheaper to run and far far more reliable

Sign In

Urgent meet sought on Thai Baht

Recommended Posts

Create an account or sign in to comment

Create an account

Sign in

Recently Browsing 0 members

Announcements

Topics

Latest posts...

Popular in The Pub

ASEANNOW

MORE INFO

POPULAR AREAS

CONTACT US