Thai govt tells BOT to 'manage' baht

[webfact]

CALL FOR MONETARY EASING
Govt tells BOT to 'manage' baht
The Nation

BANGKOK: -- Economic ministers call for monetary easing; Premier to announce govt's achievements over past six months

The committee of economic ministers, chaired by Prime Minister General Prayut Chan-o-cha, yesterday signalled the Thai central bank to pursue a monetary-easing policy in an attempt to shore up the export sector amid the global economic slowdown.

Meanwhile, Prayut along with relevant ministers will today announce his administration's achievements during its six months in power.

Deputy Transport Minister Arkhom Termpittayapaisith said after the meeting that the committee had instructed the Bank of Thailand to manage the baht and ensure it does not strengthen against the US dollar to the detriment of the business sector.

Speaking in his capacity as director-general of the National Economic and Social Development Board (NESDB), Arkhom said the committee was also given a briefing about the economic situation. Gross domestic product in the first quarter grew by 3 per cent year on year, resulting from recoveries in tourism and automotive exports.

The committee also acknowledged the country's current-account surplus of US$3 billion, derived from the drop in the global oil price.

He said NESDB was maintaining its forecast for Thai economic growth at 3.5-4.5 per cent.

However, he believes 3.5-per-cent growth in exports this year is possible even though the export sector has not seen much of a recovery because of the sluggish global economy.

Earlier, the Finance Ministry and the BOT had forecast GDP growth for this year in the range of 3.9 to 4.5 per cent despite exports contracting in the first two months by 4.82 per cent year on year.

In addition, the committee approved a Bt165.09-billion budget for the National Health Security Office for fiscal 2016.

Meanwhile, an event marking the government's claimed achievements over the past six months

will start at 9am at Government House.

The prime minister will be the main speaker, while some key ministers will also be present to assist Prayut in providing details on specific issues. This event will be aired live on National Broadcasting Television's Channel 11.

In its report, the government will outline the work done under its policies in 11 areas as mentioned earlier in its policy statement delivered to the National Legislative Assembly.

Emphasis will be on the restoration of peace and security and the national reforms because the government seized power at a time when the country was plagued with conflict.

Other achievements to be announced include action on the problems of human trafficking and illegal fishing and the registration of migrant workers.

Source: http://www.nationmultimedia.com/business/Govt-tells-BOT-to-manage-baht-30258143.html


-- The Nation 2015-04-17

[cloudhopper]

With a current account surplus it would not seem necessary to fire up the printing presses. But like all the other CBs they will....

[northernboy]

Sadly the world will judge the present success and future of Thailand's economics and no matter the BOT tries to do. The open market will in the end set the real rates after the rich Thais have taken their profits form this desire to "manage the Baht".

We really know the real direction of the baht with only 3 billion US to try to "stabilize" a currency in a shrinking economy with per capital debt at historical heights.

Good luck traders

[Strangebrew]

Watch as the baht adjust to it's real place of close to my prediction of 44 to 1 USD At that level The US will surely rethink it's position on the present government. And tourists and orders for Thailand goods flow stronger, Inflow on invests will pickup Companies wanting to relocate will be looking toward Thailand. But that is if the Head of BOT pulls there head out of there you know what.

[DeaconJohn]

Watch as the baht adjust to it's real place of close to my prediction of 44 to 1 USD At that level The US will surely rethink it's position on the present government. And tourists and orders for Thailand goods flow stronger, Inflow on invests will pickup Companies wanting to relocate will be looking toward Thailand. But that is if the Head of BOT pulls there head out of there you know what.

I hope you're right.

44 baht to the USD sounds good.

Anyone who was here when the baht was 57 to the USD will appreciate just how good.

[tracker1]

Prayut along with relevant ministers will today announce his administration's achievements during its six months in power. Cant wait

[Thai at Heart]

Watch as the baht adjust to it's real place of close to my prediction of 44 to 1 USD At that level The US will surely rethink it's position on the present government. And tourists and orders for Thailand goods flow stronger, Inflow on invests will pickup Companies wanting to relocate will be looking toward Thailand. But that is if the Head of BOT pulls there head out of there you know what.

Better tell Obama to stop printing money then. The value of the baht is driven by the USD not the baht.

[chiang mai]

For all of those posters who believe THB will fall to 44 or 47, there was a clue in the OP:

"the committee had instructed the Bank of Thailand to manage the baht and ensure it does not strengthen against the US dollar to the detriment of the business sector".

[Srikcir]

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With a current account surplus it would not seem necessary to fire up the printing presses. But like all the other CBs they will....

Maybe the Junta will use the surplus to buy its wish list of arms from Russia? Otherwise, that purchase is likely to be off-budget for the 2015 fiscal year (Oct. 2014-Sept. 2015).

[Srikcir]

The Junta can direct whatever economic policies it wants but it lacks any credibility and track-record to prove it understands the Thai economy and what is needed to recover.

"he [Deputy Transport Minister Arkhom] believes 3.5-per-cent growth in exports this year is possible even though the export sector has not seen much of a recovery because of the sluggish global economy."

Pure Junta propoganda.

Thailand will likely see the exports dropped by about 4 per cent from January to March due to weak demands in key markets, Deputy Prime Minister MR Pridiyathorn Devakula said. ..January saw the decline in exports by 3.7 per cent. The following month saw the drop of 6.1 per cent. And the downward trend would continue for last month’s exports. ThaiVisa News, April 9, 2015

"The JSCCIB yesterday lowered its export growth forecast from 3.5 per cent to "no more than 1 per cent", following Bank of Thailand's cut last month in its own forecast from 1 per cent to 0.8 per cent. " The Nation 2015-04-08

The Thai National Shippers Council recently changed its export growth target to zero expansion in 2015.

The Thai National Shippers Council recently changed its export growth target to zero expansion in 2015. The Nation 2015-04-08

Unfortunately, while the Thai people will have to suffer the consequences of an economy that is in the worse condition in 40 years, the Junta is planning on an arms weapons shopping spree with Russia after giving itself a 5% budget increase for fiscal year 2015, a 4% pay raise in 2014 and 2015. Life is good when you have absolute power.

[Suffinator]

However, he believes 3.5-per-cent growth in exports this year is possible even though the export sector has not seen much of a recovery because of the sluggish global economy.

Yeah let's not worry about what's happening around that world because they are not as special as Thailand and therefore Thailand's exports will grow.

In other news Prime Minister General Prayut Chan-o-cha said they caught a suspected cow thief carrying beans and the gov plan to plant them so as to have access to a golden goose that will boost the economy. That of course will be right after he announces his illustrious magical achievements over the last 6 months ... what these are of course is a state secret and likely to be misunderstood by anyone listening to them but that's ok because he knows that plenty of BS on a rose bed makes for beautiful flowers.

[amykat]

For all of those posters who believe THB will fall to 44 or 47, there was a clue in the OP:

"the committee had instructed the Bank of Thailand to manage the baht and ensure it does not strengthen against the US dollar to the detriment of the business sector".

This is what stood out for me in this report.

Watch as the baht adjust to it's real place of close to my prediction of 44 to 1 USD At that level The US will surely rethink it's position on the present government. And tourists and orders for Thailand goods flow stronger, Inflow on invests will pickup Companies wanting to relocate will be looking toward Thailand. But that is if the Head of BOT pulls there head out of there you know what.

I underlined in the above quote, so that I may ask ...WHAT does that mean???

Edited April 17, 2015 by amykat

[Prbkk]

Unless the 'management' is in the context of root and branch reform of foreign investment regulations anything is likely to be rearranging the deck chairs. Reduce interest rates and the Baht will go down for a period but also runs the risk of exacerbating the property bubble and high levels of household debt. If foreign investors are to return with serious plans for Thailand they will want stability and the strong likelihood that the baht will find fair value around 35 or 36....for an extended period.

Caterpillar is investing a significant amount but that reflects more the collapse of US based activity. Thailand needs about 20 or 30 big players. So far...one.