How strong Bhat realy have and effect on export prices in the world?

[Sandman77]

When I begin to compare the prices of Thai products here and in Europe , I found out looking for example on Thai wine on sold on eBay and the web , that the price espasaly in Germany for large import asian shop and dealers is even more cheaper or nearly same price like in Thailand !

Same I recognized in Indonesia with famous copy luwak coffee , it was cheaper on amazon then in bali in the shops!

No matter what products I look manuka honey from New Zealand or macadamia from Australia , when I check websites in there country of origin , Is exactly same price like on amazon!

So how a strong Bhat have realy influence on export market?

Was a report on tv that Germany bought the Thai chicken for there restaurants for workers in company in thailand , that is possible also in Europe to offer a menu for workers in company for 3 €. , because ordered the chicken in Thailand !

Now since the Bhat rise and euro fall

Thailand has a problem to sale the chicken to the world because price is to high !

Now brazil makes the deal of chicken, instead of Thailand because there currency goes down together!

We all know that exporters buying tons of a product try to pressure the price on a very deep level!

For example Italian wine in my home country austria is cheaper then in Italy it self!

I could tell s lot of other examples , I concider diffrent prices in diffrent markets

All the time in my life, but i not realy found out all real secrets!

Tvs in Europe because import from asia

Will be soon rise by 20 Procent after euro crash , but in food prices , I not see much diffrence comparing to that price

In country of origin !

Thanks for your inputs in my topic!

[DonaldBattles]

It is easy to understand that the elite in the Peoples Republic Of Bangkok do not wish to reduce the value of their money. Therefore the Bank Of Thailand continues to use it's foreign reserves to buy Baht on the world market to keep the price up. Forget about what prices you see overseas now. You wait if there is another shipment it will be from 25-40% more expensive. Would you like to pay this premium price for thai Products? BKK does not care about exporters let alone up country poor people. MONEY TALKS!

[recycler]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices. They are farming the country and the poor and middle class people have to pay the prices. Just you wonder who the current government is helping?

On the export market they have to compete and therefore products from Thailand are often cheaper in Europe or the US.

Also for very normal products that are locally produced here and in Europe the prices are now considerable cheaper in Europe than here for example ground pork in the market will cost now 170 - 190 Baht per kg, it's 130 in a premium super market in NL.

Burger King is about 10% more expensive in Thailand than in NL.

7 years ago you paid 25 Baht for fried rice with a fried egg, now it's 50 and that is only compared in Baht, in Euro the price has gone up from 0.50 to 1.43.

With the current prices Thailand will have major problems with issues like low labor productivity, poor quality, food safety, social issues like slavery, etc.

[CharlieH]

MOVED to Finance

[shaul19]

usualy the export price in long term agreements is not quoted in THB. it is in US$ or Euro or even china Y

[loppylugs1]

Thailand is a nation of slave labour,the 20% increase in minimum pay now asked for will do harm to the economy for sure,but the elections due in January should light the fuse. Ridiculous to have a strong baht with low wage industry

[MacWalen]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

[loppylugs1]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

You must be off your rocker with this statement,jobs you call it? all I see is desperate people not going anywhere,never will. The education sysyem is foul,just a nation of thick slave labour on 300 baht a day stuff,rice farmers topping themselves,the most heavily indebted country in South east Asia if not the world as recently reported

This is not capitalism,its communism

[Suradit69]

It is easy to understand that the elite in the Peoples Republic Of Bangkok do not wish to reduce the value of their money. Therefore the Bank Of Thailand continues to use it's foreign reserves to buy Baht on the world market to keep the price up. Forget about what prices you see overseas now. You wait if there is another shipment it will be from 25-40% more expensive. Would you like to pay this premium price for thai Products? BKK does not care about exporters let alone up country poor people. MONEY TALKS!

"Therefore the Bank Of Thailand continues to use it's foreign reserves to buy Baht on the world market to keep the price up."

So the worl-wide collapse of the Euro & the Ruble and slide of commodity-dependent currencies is all the work of the nefarious Bank of Thailand?

The elite in Bangkok can maintain foreign currency accounts (hopefully not in Euros) for personal foreign expenditures and most have a vested interest in exporting or inflow of tourists, neither of which would improve with a rising baht.

Currency intervention seldom has more than a short term effect especially against the more powerful collapse of farang economies like the Eurozone or the impact of commodity price declines for economies like Australia or Canada.

And if they wanted to support the baht, why would they drop interest rates this month?

(Bloomberg) -- Surprises are becoming more common than not, when it comes to central banks. Thailand today became the latest to execute an unexpected interest-rate cut.

The Southeast Asian country -- a onetime export powerhouse that’s seen its manufacturing mojo dim somewhat in recent years amid historic flooding and political infighting -- lowered its main rate to 1.75 percent. Only six of 22 economists surveyed by Bloomberg News saw the move, with the rest predicting the rate would be held for an eighth meeting.

The Bank of Thailand says it will not be implementing any special measures to control the value of the Thai currency even though the private sector is complaining that the strengthening baht will have a negative impact on the country’s exports.

[Crash999]

It's not so much the Baht getting stronger as the Euro getting weaker. Prices for export contracts are typically negotiated in USD even for export to Europe and at around 32.5 to the dollar it's a better position for exports than 29 back in 2013.

[Balance]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

And you got your degree in oligarchy economics from what planet? Thailand is not even close to being a capitalist economy simply because there is no competition; there are no free markets.

And who is caring about Thailand? The sad truth is absolutely no one, and the military takes orders from the same people who responsible for TBH keeping the Bhat strong. Think of Thailand as a plum becoming a prune. The 20 families will continue to suck the country dry until it implodes.

[bapoboy]

"Thailand complain club"

[bapoboy]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

And you got your degree in oligarchy economics from what planet? Thailand is not even close to being a capitalist economy simply because there is no competition; there are no free markets.

And who is caring about Thailand? The sad truth is absolutely no one, and the military takes orders from the same people who responsible for TBH keeping the Bhat strong. Think of Thailand as a plum becoming a prune. The 20 families will continue to suck the country dry until it implodes.

No competions here in Norway either, goverment own everything, if you try to start up something private, they will try so ahrd they can to kick you down.

[GOLDBUGGY]

Please keep in mind that many of Thailand's Export Products aren't sold in Thai Baht, but rather in U.S.D. Like Rice and Rubber, and Coffee also, if exported. I am not so sure about Pork and Poultry, as this may also be done on the Chicago Commodities Exchange, but not so sure if this would include Thailand. But Wine is not so a higher Baht would mean higher Thai Wine Prices to you.

The higher prices for many things may just be the difference between the US Dollar and your Currency. Since the U.S.D has be on the rise against most other currencies this could explain the higher prices you are paying now.

[morrobay]

Thailand is a nation of slave labour,the 20% increase in minimum pay now asked for will do harm to the economy for sure,but the elections due in January should light the fuse. Ridiculous to have a strong baht with low wage industry

Thailand is a feudal economy. Its also ridiculous to have a strong baht with declining exports.@Suradit69 25 pts is only a token rate cut. @recycler local inflation is at least 16%

For example 3 years ago pork and rice was 25 baht , now according to this Thai lady it is 40 baht. So 40 = (1.16)³ ( 25).

So there is finally a consensus that the Bangkok elite, 20 families or so, are controlling the monetary policy of the Bank of Thailand. Ie for an artificially strong baht by using foreign reserves buying baht.Now this question is for the economists here :

How sustainable is this process of propping up the baht in terms of declining exports and the supply of foreign reserves ?

Edited April 4, 2015 by morrobay

[arunsakda]

People in Europe purchase Thai wine? Novelty purposes?

[arunsakda]

Double post.

Edited April 4, 2015 by arunsakda

[Naam]

People in Europe purchase Thai wine? Novelty purposes?

Thai wine at the inside of fences is used to prevent stray dogs and cats entering the property.

[Issangeorge]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

A strong baht only helps the wealthy. How many Thais buy things that are made outside if Thailand? The price of the baht does not affect them. Except their jobs are quite often based on exported products and tourism. The strong baht is going to cause both of these to decrease, and thus the employment in these industries will drop also. Soon there will be many people from Isaan returning home, because they have no jobs anymore.

[MacWalen]

Inside Thailand there is no competition, the about 20 family conglomerates own almost everything and are able to set the prices.

From a capitalistic point of view it is good. Someone cares about the well being of the country. They give jobs to people etc. It works and it will work even better as things are improving in Thailand.

A strong baht only helps the wealthy. How many Thais buy things that are made outside if Thailand? The price of the baht does not affect them. Except their jobs are quite often based on exported products and tourism. The strong baht is going to cause both of these to decrease, and thus the employment in these industries will drop also. Soon there will be many people from Isaan returning home, because they have no jobs anymore.

I would argue with that. It will force various industries to be more efficient and produce cheaper. It can have long term benefits. Look at the rice production. Thais are the worst in the region as far as far as the crop per rai. Most farmers are not trying to improve themselves. I have a friend, a Thai lady, her dad would not listen to her about improving his farm although she was well educated and could help him to make many improvements. Only hitting him in the pocket could change the old man's thinking. If you hit him hard enough he will start thinking about doing things better.

[loppylugs1]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

[Naam]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

[morrobay]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

Fifteen years ago sir the Baht was about 44/$. Is that a good enough bath for you ?. As you have some economic knowledge how about answering my post # 15 above:

How sustainable is this artificial propping up of the Baht by Bank of Thailand Ie buying Baht, as ordered.

With respect to exports declining and counting, and unknown supply of foreign reserves for said purpose.

Edited April 6, 2015 by morrobay

[Naam]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

Fifteen years ago sir the Baht was about 44/$. Is that a good enough bath for you ?. As you have some economic knowledge how about answering my post # 15 above:

How sustainable is this artificial propping up of the Baht by Bank of Thailand Ie buying Baht, as ordered.

With respect to exports declining and counting, and unknown supply of foreign reserves for said purpose.

i am neither a prophet nor will i indulge in specific forex forecasts. that also applies to actions of the Bank of Thailand, unfounded claims "as ordered" or various other conspiracy theories. what i stated is a fact, namely the whining, whinging about the strong Baht with attached wishful thinking goes on since years.

a fact is also that the BoT can easily afford to prop up the Baht whenever desired as the forex reserves prove and that too since years.

"good enough" for me is any exchange rate in a range who's possibility can be rationally expected whether it is THB 20 or THB 50 vs. the US-Dollar.

[beechguy]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

Fifteen years ago sir the Baht was about 44/$. Is that a good enough bath for you ?. As you have some economic knowledge how about answering my post # 15 above:

How sustainable is this artificial propping up of the Baht by Bank of Thailand Ie buying Baht, as ordered.

With respect to exports declining and counting, and unknown supply of foreign reserves for said purpose.

You guys seem to be whining about the wrong country/government. You should be concerned about what the EU, and your respective countries, are going to do about your own economies.

By the way, if you go back a few more years(pre 1997), the dollar was worth about 25 Baht. But only an idiot would have expected 44 Baht to last forever.

[Sandman77]

For a local, that earns only Thai Bhat , how high the daily living coasts realy rise within last 10 years?

In around same level the Bhat value goes up?

Or much lower?

Can someone review this?

For me it looks within last 10 years foreign currency's loose more value then a Thai payed more in the same time!

Is this right?

How to teach effective working here in thailand ?

Proberbly this never work

Thais stand at there point and not move any c m away!

No matter how long we talk, or how our angles of view will be diffrent !

Thx for many replys in my topic!

[Naam]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

Fifteen years ago sir the Baht was about 44/$. Is that a good enough bath for you ?. As you have some economic knowledge how about answering my post # 15 above:

How sustainable is this artificial propping up of the Baht by Bank of Thailand Ie buying Baht, as ordered.

With respect to exports declining and counting, and unknown supply of foreign reserves for said purpose.

You guys seem to be whining about the wrong country/government. You should be concerned about what the EU, and your respective countries, are going to do about your own economies.

By the way, if you go back a few more years(pre 1997), the dollar was worth about 25 Baht. But only an idiot would have expected 44 Baht to last forever.

please give me one valid reason why a retiree who lives in Thailand should be concerned about the economies in EU-countries.

[Sandman77]

When the economy in your home country runing bad , then value of money goes down in Thailand !

This is one reason why every body must concern about economic in home country!

Ignoring everything , is not the aswer of understanding where a problem comes from!

[DonaldBattles]

Eports sometimes are barter trade. They usually are in the form of currency that two parties agree on, not always US$.

The strong Baht caused by the elite is really liked by them. They remain very happy about the level. The poor devils that would like to export are not very happy. With oil prices down they have a lot of foreign reserves to keep the Baht propped up.

[morrobay]

Now we see the baht taking a bath. Exports down 3% and going to gain a few more % before too long, tourism too Sales of condos through the floor, income down quarter on quarter by 17.8 billion $US. Not exactly face saving mode more of an arse kicking

the boring message that the Baht will take a bath i hear since 15 years. yawwnnn...

Fifteen years ago sir the Baht was about 44/$. Is that a good enough bath for you ?. As you have some economic knowledge how about answering my post # 15 above:

How sustainable is this artificial propping up of the Baht by Bank of Thailand Ie buying Baht, as ordered.

With respect to exports declining and counting, and unknown supply of foreign reserves for said purpose.

You guys seem to be whining about the wrong country/government. You should be concerned about what the EU, and your respective countries, are going to do about your own economies.

By the way, if you go back a few more years(pre 1997), the dollar was worth about 25 Baht. But only an idiot would have expected 44 Baht to last forever.

There are alot of moving parts here : I and others can be on several tracks simultaneously. Questioning why the Baht is suspiciously strong. You dont have to be an economist to read the newspapers. While also concerned about our respective countries economies and the effect on exchange rates. Here is how concerned I am:

Bush,Greenspan,some bankers, and Bernanke should be in prison for:

1.Causing the financial crisis with reckless financial deregulation and housing bubble. 2. Debasing the dollar with Q.E.'s

Edited April 6, 2015 by morrobay