Record low EUR/THB rate affecting expats?

[carter1882]

Hilarious...the Euro goes down and you want the Thai govt to help you out. And you only spend 100k a month. My heart bleeds for you.

[micmichd]

Who asked the Thai government for help?

And what does "only 100 k" mean in this context?

Do you spend more? If yes: for what?

[beechguy]

here you are

http://www.thaivisa.com/forum/topic/807664-bye-bye-europe-exapats-and-holiday-goers/

Ozzy dollar down from 30 to 25 (20% less)

Russian ruble down 60%

Looks like everyone except the Yanks and the Brits are screwed.

Hey I'm a Brit. 10 years ago when I first came here I was getting 73B - quid. now 49B -quid.

And 10 years ago, I could run 10 km, now I can't make it around the block. Anyone that came here after 1997, and expected the exchange rates to remain at that level, are/were asking for trouble. If any of you are having difficulties, you have my sympathy, but it was only a matter of time before things readjusted.

[harryfrompattaya]

60 kb per month is maybe enough for a small family, but less is not enough anymore.

Why should I sacrifice the life of a Thai family to a Farang economic crisis?

I'm fully aware where this crisis comes from, and I have no sympathy for those who are taking advantage of it - ever since some US President thought it would be a good idea to finance domestic welfare by an Imperialistic war.

I've looked after my family(2 kids) on 30k a month. Someone is scamming you brother.

Now, I have a mortgage for 20k a month, private school fees and can save off 60k a month.

Count yourself lucky I have 8 children to look after, Wife, Wife's Mother, Wife' s Brother, Wife's father, Wife's Son, My Daughter and the Wife's cousin. lol

raw deal for free rent!

Sorry to say Saw it many times in Thailand

Do not worry when you can not support these bums anymore the wife will get rid of you

[Chivas]

No worse than the Pound's drop from 72 to 48. Just adjust your spending.

Or 90 to 43

[wooloomooloo]

I can't complain. Enjoying the weak EUR and booked another long weekend European holiday today for August. Hotel booked and guaranteed the conversion rate in the process.

Mastercard have a very competitive conversion rate and there's no transaction fees on my credit card. This is fab for us in the UK at the moment.

[Pib]

No worse than the Pound's drop from 72 to 48. Just adjust your spending.

Or 90 to 43

Oh yea, since we are reminiscing history let's not forget those "few days" in Jan 98 during the Thailand financial crisis when the GBP-THB reached 90 baht....now the UK folks who moved to Thailand during Jan 98 are surely suffering today.

[Phuketboy]

A strong baht is great news. It means the more money I send home the more money I make. Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper. Why would any country want to trash their own currency to make it weaker against another? The only people it affects are tourists, those bringing money in, or those exporting and exports slow down. But for those doing the opposite, it is heaven right now. Always good to have a backup business in another country, such as your home country, so when currencies move you are covered either way. Do you think the US would want to weaken the dollar if it were strong against the baht? Simple answer is no, so why should Thailand weaken the baht. Get on board people.

Edited March 16, 2015 by Phuketboy

[Anthony5]

A strong baht is great news. It means the more money I send home the more money I make. Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper. Why would any country want to trash their own currency to make it weaker against another? The only people it affects are tourists, those bringing money in, or those exporting and exports slow down. But for those doing the opposite, it is heaven right now. Always good to have a backup business in another country, such as your home country, so when currencies move you are covered either way. Do you think the US would want to weaken the dollar if it were strong against the baht? Simple answer is no, so why should Thailand weaken the baht. Get on board people.

Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper.

I don't want to dispute your comment, because you're right on the ball, but I still can't understand why the products Big C imports from their mother company Casino in France get more expensive every day while actually the opposite should be the case.

[micmichd]

I happen to be on the other side, the Thai side.

It's Europe where the trash economy is.

EU should get rid of her subvention and welfare system, with all consequences.

[micmichd]

A strong baht is great news. It means the more money I send home the more money I make. Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper. Why would any country want to trash their own currency to make it weaker against another? The only people it affects are tourists, those bringing money in, or those exporting and exports slow down. But for those doing the opposite, it is heaven right now. Always good to have a backup business in another country, such as your home country, so when currencies move you are covered either way. Do you think the US would want to weaken the dollar if it were strong against the baht? Simple answer is no, so why should Thailand weaken the baht. Get on board people.

Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper.

I don't want to dispute your comment, because you're right on the ball, but I still can't understand why the products Big C imports from their mother company Casino in France get more expensive every day while actually the opposite should be the case.

[micmichd]

Most of the European capital is in fact interest on debts and goes to the ECB banking support system. A Ponzi scheme for hiding a coming financial collapse.

Edited March 16, 2015 by micmichd

[Cypress Hill]

A strong baht is great news. It means the more money I send home the more money I make. Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper. Why would any country want to trash their own currency to make it weaker against another? The only people it affects are tourists, those bringing money in, or those exporting and exports slow down. But for those doing the opposite, it is heaven right now. Always good to have a backup business in another country, such as your home country, so when currencies move you are covered either way. Do you think the US would want to weaken the dollar if it were strong against the baht? Simple answer is no, so why should Thailand weaken the baht. Get on board people.

Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper.

I don't want to dispute your comment, because you're right on the ball, but I still can't understand why the products Big C imports from their mother company Casino in France get more expensive every day while actually the opposite should be the case.

I'm going to assume your exaggeration about daily increases was for effect but one explanation could be that the taxes levied on those imports increase

Edited March 16, 2015 by Cypress Hill

[wooloomooloo]

Most of the European capital is in fact interest on debts and goes to the ECB banking support system. A Ponzi scheme for hiding a coming financial collapse.

You've summed up Thailand to a T.

[hhgz]

"Most of the European capital is in fact interest on debts and goes to the ECB banking support system. A Ponzi scheme for hiding a coming financial collapse. "

Similar to the predicted complete, absolute, and utter destruction of the condo market on August 29, 2014, right?

[bkksteve123]

I do not think it will have any major impact.

I would think that most expats in Thailand earn a THB salary. So if anything, this is good for them as they will be able to "save" more EUR from their salary, which is great if you ever decide/need to leave Thailand.

The other "expats" i.e. EURO retirees. Some may be considering packing up, especially if they already were on a tight budget. But overall I think it's still cheaper and better than going back to Europe for most of them.

Also, I think most of us would agree that this is a temporary swing in the FX rate. It's only a matter of time, perhaps a few years, until Europe recovers and EUR interest rates will start to increase (happening soon in US), while simultaneously Thailand may be experiencing a massive asset bubble burst when money is pouring back into US and EU chasing higher yield, and Thailand may be where the EU was 5 years ago, a shit ton of debt, declining economy, Thai girls defaulting on their iPhone loans, WEAK CURRENCY.

[micmichd]

"Most of the European capital is in fact interest on debts and goes to the ECB banking support system. A Ponzi scheme for hiding a coming financial collapse. "

Similar to the predicted complete, absolute, and utter destruction of the condo market on August 29, 2014, right?

[micmichd]

"Most of the European capital is in fact interest on debts and goes to the ECB banking support system. A Ponzi scheme for hiding a coming financial collapse. "

Similar to the predicted complete, absolute, and utter destruction of the condo market on August 29, 2014, right?

Edited March 17, 2015 by micmichd

[micmichd]

Don't know about the August 2014 condo scenario.

I mean the mathematical consequences of exponential growth. When the exponential growth of money demand exceeds the growth of production, then the system is about to collapse.

Worst-case scenarios (like a global bank run) are very important, they are the base of economic counterstrategies. Ponzi schemes are such a counterstrategy, but that only works with an uninformed public. And in times of world wide information systems, we are not uninformed anymore, are we?

[Anthony5]

A strong baht is great news. It means the more money I send home the more money I make. Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper. Why would any country want to trash their own currency to make it weaker against another? The only people it affects are tourists, those bringing money in, or those exporting and exports slow down. But for those doing the opposite, it is heaven right now. Always good to have a backup business in another country, such as your home country, so when currencies move you are covered either way. Do you think the US would want to weaken the dollar if it were strong against the baht? Simple answer is no, so why should Thailand weaken the baht. Get on board people.

Anyone with Thai business that imports from overseas would be loving it right now as well, because it means the products are cheaper.

I don't want to dispute your comment, because you're right on the ball, but I still can't understand why the products Big C imports from their mother company Casino in France get more expensive every day while actually the opposite should be the case.

I'm going to assume your exaggeration about daily increases was for effect but one explanation could be that the taxes levied on those imports increase

No it isn't an exaggeration. Not all product increase every day, but every day some products increase, and in fact it isn't limited to import products but Thai produce is included as well.

I'm going to assume your suggestion that taxes on all import products have increased that much that a 25% increase in Baht against Euro value is reversed, was just a poor attempt to find an excuse.

[micmichd]

Why should Thailand allow to ruin Thai economy with cheap Farang imports?

Especially when Thai products are healthier?

[Anthony5]

Why should Thailand allow to ruin Thai economy with cheap Farang imports?

Especially when Thai products are healthier?

Especially when Thai products are healthier?

[IMA_FARANG]

You can HOPE that the Eurozone's Quantitative Easing (buying back Euro bonds ) will somehow bring the Euro back up to a higher exchange rate and that may give you a better rate against the Baht.

Other than that there is little hope for the Euro.

It's not that the Thai Baht is that much overvalued, it's that the Eurozone and it's Euro is a sinking ship right now, and the Euro has been overvalued for some time.

Now you who are in the Eurozone have danced to the fiddler's merry tune, now it is time for you tot pay the fiddler for the music.

[IMA_FARANG]

I do not think it will have any major impact.

I would think that most expats in Thailand earn a THB salary. So if anything, this is good for them as they will be able to "save" more EUR from their salary, which is great if you ever decide/need to leave Thailand.

The other "expats" i.e. EURO retirees. Some may be considering packing up, especially if they already were on a tight budget. But overall I think it's still cheaper and better than going back to Europe for most of them.

Also, I think most of us would agree that this is a temporary swing in the FX rate. It's only a matter of time, perhaps a few years, until Europe recovers and EUR interest rates will start to increase (happening soon in US), while simultaneously Thailand may be experiencing a massive asset bubble burst when money is pouring back into US and EU chasing higher yield, and Thailand may be where the EU was 5 years ago, a shit ton of debt, declining economy, Thai girls defaulting on their iPhone loans, WEAK CURRENCY.

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That is false .

There are some Eurozone retirees, who are getting a state pension in their home countries currency.

I am lucky enough to be getting my pension in U.S, dollars as I am an American.

Right now I'm doing well as the dollar is improving.

How long that will be I can not honestly say.

[micmichd]

Not only the state pensions. I also get a bank pension from EU, and that is also worth less in THB. Same same with everything in EUR.

If any Farangs think they have material goods like a house or a car in EU, they might find out pretty soon that it is already gone to banks.

[ChomDo]

The conversations seems to involve pensions only. I hadn't even thought about that when I posted the topic since I'm about 35 years away from retirement age. My issue was involving salary coming from Europe to a Thai account but I can see that the problem is very much the same for the retirees.

[ChomDo]

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I do not think it will have any major impact.

I would think that most expats in Thailand earn a THB salary. So if anything, this is good for them as they will be able to "save" more EUR from their salary, which is great if you ever decide/need to leave Thailand.

The other "expats" i.e. EURO retirees. Some may be considering packing up, especially if they already were on a tight budget. But overall I think it's still cheaper and better than going back to Europe for most of them.

Also, I think most of us would agree that this is a temporary swing in the FX rate. It's only a matter of time, perhaps a few years, until Europe recovers and EUR interest rates will start to increase (happening soon in US), while simultaneously Thailand may be experiencing a massive asset bubble burst when money is pouring back into US and EU chasing higher yield, and Thailand may be where the EU was 5 years ago, a shit ton of debt, declining economy, Thai girls defaulting on their iPhone loans, WEAK CURRENCY.

----------------------------

That is false .

There are some Eurozone retirees, who are getting a state pension in their home countries currency.

I am lucky enough to be getting my pension in U.S, dollars as I am an American.

Right now I'm doing well as the dollar is improving.

How long that will be I can not honestly say.

Do most expats really earn THB salary even if they work for a European company? Isn't this only the case when they have local contracts..not sure at all but maybe someone working here for an European company can explain?

[micmichd]

If you work for a European company your salary will be paid in EUR, too.

That means you also get less in THB.

[jerojero]

The Aussie dollar has dropped 20% over the last 6+months or so. I transfer my Super Pension fortnightly and while I am able to support my family here, pay the house and car and education bills, I have gone from supporting to surviving.

I don't go out drinking, we don't go to Restaurants, we hardly venture anywhere outside of the house even the beach anymore. My Golf is on hold, but we are together and we still eat ok, we are getting through the slump and will come out smarter for having been through the low financial period.

Adjustments had to be made on spending. When this turns around again, and it will, we will enjoy those times and look back at how we survived this period in our lives.

Its only a matter of time before the American Federal Reserve will make the decision to increase interests rates and see the USD go into freefall once their debt ridden society can't pay!

Markets have a way of self correcting the over and under valued.

Its all a game for a few elites and there is nothing that can be done but to be smart in our observations.

If your fortunate enough to not have to worry about exchange rates, then why are you reading and commenting in this thread?

Yes there will be the inevitable macroeconomic cycle and eventual weakening of the US dollar, but that could take a couple years! Given much of the world economies are weak relative to the US, it could be a long while before exchange rates balance back to what we saw the past number of years.

[ChomDo]

If you work for a European company your salary will be paid in EUR, too.

That means you also get less in THB.

I know..in my case it is exactly so but bkksteve123 said earlier that most expats would be earning THB. That must mean they they work under a thai contract or for a thai company, which of course most westerners don't want to do.