webfact Posted February 4, 2015 Share Posted February 4, 2015 Private sector concerned ECB's QE will make baht too strongBANGKOK, 4 February 2015 (NNT) – The private sector has expressed concerns over an expected appreciation of the Thai baht, a direct consequence of the European Central Bank's implementation of quantitative easing (QE).Representatives from the Federation of the Thai Industries (FTI), the Board of Trade of Thailand and the Thai Bankers' Association on Tuesday expressed their concerns over the European Central Bank's QE measure, as well as over the volatility of the global economy.According to Supan Mongkolsuthee, chairman of the FTI. The QE measure is expected to make the Thai baht, which has already gained more than neighboring currencies, appreciate even further. Mr. Supan, who hosted a joint meeting between the three private sector organizations on Tuesday, said those at the meeting were concerned with the lowered competitiveness as a result of the baht's appreciation.The private sector representatives are slated to discuss with the Bank of Thailand on appropriate means of regulating the baht's value on February 11.Mr. Suphan said the meeting also expressed concerns over the slower-than-expected disbursal of state budget in December, 2014, as this fact weighed on the confidence of the private sector. In the meantime, positive signals have been coming in from the tourism sector – Chinese and Malaysian tourist arrivals continue to increase, and domestic tourism activities of Thais also pick up the pace.-- NNT 2015-02-04 Link to comment Share on other sites More sharing options...
i claudius Posted February 4, 2015 Share Posted February 4, 2015 More Chinese tourists ,wow that will put another few thousand baht in the govts kity. just read about the Quality Chinese tourist at Chiang Mai airport that was drying her underwear on the chairs in the departure lounge Link to comment Share on other sites More sharing options...
Jonmarleesco Posted February 4, 2015 Share Posted February 4, 2015 The Baht won't appreciate, will it? The Euro will depreciate. Link to comment Share on other sites More sharing options...
wabothai Posted February 4, 2015 Share Posted February 4, 2015 The arrivals of Europeans will slow down drastically unless the baht will be depreciated. So will the expenditures of European expats. Example is the Russian exodus. Your products will become expensive too ! Time to depreciate. Link to comment Share on other sites More sharing options...
emilymat Posted February 4, 2015 Share Posted February 4, 2015 I'm afraid that any movement down in relation to the Thai baht would be too much 'loss of face' to the current incumbents. What might be seen as sensible economics to support exports, will - in the view of the guys in charge here - be viewed as sending the wrong message to the rest of the world. i.e. the economy is stalling. I cannot fathom out why the pound sterling - with an alleged successful economic growth policy - should be constantly slipping against the baht. More able minds will explain it. As I've decided to go, I'm clearly not bothered any more, as the baht's I send back to the UK will buy me more pounds. However, I still am concerned for ex pats (UK or otherwise) who see their incomes dropping all the time against the currency of a country that still seems rife with corruption - given the recent release of the fortunes of the military and parliamentary top nobs for example. Link to comment Share on other sites More sharing options...
BestBitterPhuket Posted February 4, 2015 Share Posted February 4, 2015 The rubber farmer in the south, who were the backbone of the "reform" protests, feels let down by the current government. The price of rubber is lower than ever. An easing of the baht's value, would increase the rubber farmers income, as they are paid in bht. Link to comment Share on other sites More sharing options...
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