No new measures to weaken baht: BOT governor

[webfact]

No new measures to weaken baht: BOT governor
The Nation

BANGKOK: -- Bank of Thailand Governor Prasarn Trairatvorakul on Thursday insisted that no more measures are planned to further weaken the Thai baht against US dollar.

Last week, the central bank made a surprise cut to the policy rate. It also eased capital account restrictions to facilitate cross-border capital flows.

The baht lost more than 1 per cent to 33.43 per dollar on Thursday, its weakest since January 2010.

The central bank governor attributed the depreciation to several factors, including the rate cut, the easing of the capital account restrictions as well as the improvement in some US economic indicators.

He is convinced that the weakening baht would support Thailand’s economic recovery, citing that the first-quarter growth was slower than expected due mainly to export contraction.

Source: http://www.nationmultimedia.com/breakingnews/No-new-measures-to-weaken-baht-BOT-governor-30259511.html


-- The Nation 2015-05-07

[Strangebrew]

You sure it wasn't all the expats ranting and raving on how the baht is way over valued causing exports to suffer?

[Orac]

I thought they were aiming to keep it stable against other regional currencies so would be interested if this statement was made before or after Vietnams latest devaluation.

[webfact]

EXPORT
Govt bullish on benefits of weakening baht
The Nation

BANGKOK: -- The government has expressed its opitimism that the export target this year would be achieved thanks to the recent depreciation in the Thai baht as well as a slight improvement the euro zone economy.

Government Spokesperson Dr Yongyuth Mayalarp told reporters that the Bank of Thailand’s recent measures are positive to the export sector, as this should boost the competitiveness and ensure that the Commerce Ministry’s 1.2 per cent export target would be achieved.

He also noted that another good news came from the European Commission’s upward revision in the European Union economic growth in 2015 from 1.7 per cent to 1.8 per cent, following monetary easing measures.

The higher economic growth rate should boost demand for Thai exports, he said, adding that 9 per cent of Thai exports is destined to the bloc.

The baht lost more than 1 per cent to 33.43 per dollar on Thursday, its weakest since January 2010.

Last week, the central bank made a surprise cut to the policy rate. It also eased capital account restrictions to facilitate cross-border capital flows.

Bank of Thailand Governor Prasarn Trairatvorakul on Thursday attributed the weakening to several factors, including the rate cut, the easing of the capital account restrictions as well as the improvement in some US economic indicators.

He is convinced that the weakening baht would support Thailand’s economic recovery, citing that the first-quarter growth was slower than expected due mainly to export contraction.

Yet, he insisted that no more measures are planned to further weaken the Thai baht against US dollar.

Source: http://www.nationmultimedia.com/business/Govt-bullish-on-benefits-of-weakening-baht-30259513.html

-- The Nation 2015-05-07

[Skywalker69]

-Do you want to make a bet Khun Prasarn?

[TheAppletons]

Well, until Prayut orders them (again) to do so.

http://news.thaivisa.com/thailand/thai-govt-tells-bot-to-manage-baht/51025/

[khwaibah]

The baht is getting its arse kicked at the moment.

[Eric Loh]

Well, until Prayut orders them (again) to do so.

http://news.thaivisa.com/thailand/thai-govt-tells-bot-to-manage-baht/51025/

Like a gentle remainder who is boss or else he will lay 44 on BOT governor. Under such circumstance, independence of the BOT was compromised.

[StefanBBK]

Hmm. ... someone may would suggest that some important person needed to change a lot of Baht into as many dollars as possible.... since that is now done, things can go back to a normal low Baht that is good for exports.

Whilst that theory may be tempting for many, my opinion it is not. I believe that exports suffered with the lately stronger baht. Hence something needed to be done. Means slightly more baht for each ton of rice exported.

Good for us. I might stock up on baht soon, be for it is reversed.

[Thai at Heart]

EXPORT

Govt bullish on benefits of weakening baht

The Nation

BANGKOK: -- The government has expressed its opitimism that the export target this year would be achieved thanks to the recent depreciation in the Thai baht as well as a slight improvement the euro zone economy.

Government Spokesperson Dr Yongyuth Mayalarp told reporters that the Bank of Thailand’s recent measures are positive to the export sector, as this should boost the competitiveness and ensure that the Commerce Ministry’s 1.2 per cent export target would be achieved.

He also noted that another good news came from the European Commission’s upward revision in the European Union economic growth in 2015 from 1.7 per cent to 1.8 per cent, following monetary easing measures.

The higher economic growth rate should boost demand for Thai exports, he said, adding that 9 per cent of Thai exports is destined to the bloc.

The baht lost more than 1 per cent to 33.43 per dollar on Thursday, its weakest since January 2010.

Last week, the central bank made a surprise cut to the policy rate. It also eased capital account restrictions to facilitate cross-border capital flows.

Bank of Thailand Governor Prasarn Trairatvorakul on Thursday attributed the weakening to several factors, including the rate cut, the easing of the capital account restrictions as well as the improvement in some US economic indicators.

He is convinced that the weakening baht would support Thailand’s economic recovery, citing that the first-quarter growth was slower than expected due mainly to export contraction.

Yet, he insisted that no more measures are planned to further weaken the Thai baht against US dollar.

Source: http://www.nationmultimedia.com/business/Govt-bullish-on-benefits-of-weakening-baht-30259513.html

-- The Nation 2015-05-07

1% isnt' goingto do it....

[Thai at Heart]

Hmm. ... someone may would suggest that some important person needed to change a lot of Baht into as many dollars as possible.... since that is now done, things can go back to a normal low Baht that is good for exports.

Whilst that theory may be tempting for many, my opinion it is not. I believe that exports suffered with the lately stronger baht. Hence something needed to be done. Means slightly more baht for each ton of rice exported.

Good for us. I might stock up on baht soon, be for it is reversed.

The baht has been reducing in value since mid 2013.

Hasn't bumped up exports yet has it. People just don't get it. The clincher to growing exports is FDI. The vast majority of exports are from MNCs exporting their own products. To get them to invest, what do you need.

a. First no coups (2 in the last 10 years)

b. Political stability. (Ho Ho, lets not laugh too much)

So, next, go and look at the FDI numbers. Falling steadily since 2012.....

[mommysboy]

Needs to be in the order of 15-25%.

[AlphMichaels]

Lots of economics and financial markets experts here. Interesting. I predicted this (here) in January. Everything was lining up for it. Asian markets, many jockeying for ASEAN leadership, strong and/or strengthening US economic data, China market skyrocketing. It's not over.

[Just1Voice]

Are government employees required to take "Optimist" pills ever morning?

[stoli]

You sure it wasn't all the expats ranting and raving on how the baht is way over valued causing exports to suffer?

Oh yes, the Central Bank always makes changes to the baht to satisfy Expats that rant & rave. Don't all countries operate this way? A sound financial observation, that idea.

[BuaBS]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

[stoli]

I thought they were aiming to keep it stable against other regional currencies so would be interested if this statement was made before or after Vietnams latest devaluation.

Is there another Vietnam other than the one in Southeast Asia? The Vietnamese Dong has been a stable constant going on for 4 years now. It does not fluctuate at all. Was there a devaluation 5 years ago?

[alfieconn]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

What's mouths to feed got to do with it ? anyway they obviously feel sorry for married men thus the reason they are not penalized so heavily

Edited May 7, 2015 by alfieconn

[Tassie Norm]

You sure it wasn't all the expats ranting and raving on how the baht is way over valued causing exports to suffer?

Oh yes, the Central Bank always makes changes to the baht to satisfy Expats that rant & rave. Don't all countries operate this way? A sound financial observation, that idea.

Just what 'strangebrew' are you imbibing?

[kalbo123]

Thailand finally follows, I think export is really hurting at this moment, however I don't think it's enough yet, It looks like other countries with similar export products devaluate their currencies even more.

[thailand49]

Wasn't this discussed recently by all the know it all types economist?

You can't influence the economy or Baht?

[trainman34014]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

What's mouths to feed got to do with it ? anyway they obviously feel sorry for married men thus the reason they are not penalized so heavily

No; it's a reward for already contributing billions into the Thai economy and supporting Thai families that would most often be Fatherless and without a pot to piss in !

[NCC1701A]

It's a world wide race to the bottom. May you live in interesting times.

[Shiver]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

Perhaps they think a single guy is out on the pop all day every day, and married men are home loving abstainers so don't need as much unspent money on reserve

I don't have a sensible answer for you, though I'm sure it's something almost all foreigners have asked a few times.

[Thai at Heart]

Ok. Next question, for every dollar value of exports what dollar value needs to be imported.?

This is Thailand conundrum hoping that a devaluation will boost exports. A 1%drop in the baht also pushes up inputs...... Productivity gain is the way forward not devaluation.

Make more for less....

[soalbundy]

It's a world wide race to the bottom. May you live in interesting times.

I won, i'm already there.

[Orac]

I thought they were aiming to keep it stable against other regional currencies so would be interested if this statement was made before or after Vietnams latest devaluation.

Is there another Vietnam other than the one in Southeast Asia? The Vietnamese Dong has been a stable constant going on for 4 years now. It does not fluctuate at all. Was there a devaluation 5 years ago?

Not sure what happened 5 years ago but the Vietnam I am talking about devalued in January this year and has announced another devaluation today.

http://www.nationmultimedia.com/business/Vietnam-devalues-dong-to-boost-growth-30259516.html

[swissie]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

What's mouths to feed got to do with it ? anyway they obviously feel sorry for married men thus the reason they are not penalized so heavily

No; it's a reward for already contributing billions into the Thai economy and supporting Thai families that would most often be Fatherless and without a pot to piss in !

No statistics available. Statistics only available on what tourists spend in this country. (Depending on year, between 8 to 12 % of GNP.). Including the monthly funds entering Thailand to support entire Thai Families would have to bring it up by quite a few percentages.

I assume, that for good reason, even if available, such statistics would never be publicized.

Cheers.

[Pib]

Just read an article that Vietnam was lowering the Dong but not much impact on the xrate against usd.

Meanwhile we get less intrest on our 800K !

Why does an retirement extention expat have 800k on his account ( with 1 mouth to feed ) , and a married expat only 400k , with at least 2 mouths to feed ?

Think of it like an investment tax break or discount...stay single, no discount.....marry a Thai and get a Bt400K discount.

Following that line of reasoning I wonder if having a "mia noi" would lower the requirement to Bt200K.

[IMA_FARANG]

A little off the topic, but not to much.

My U,S. dollar pension for May finally was processed to my account on the 7th of May by Bangkok Bank.

My calculator tells ne the actual rate I received was 32.6633 Baht to a dollar.

Just thought I would post the information here so you could see the actual rate I got.