AyG Posted May 18, 2015 Share Posted May 18, 2015 There's an article in the FT today "Asian currencies tripped up by global bond rout".It includes the following observations on the baht: "Just in time for the summer holidays, the price of an ice-cold Thai beer is tumbling."Over the past month, the baht has fallen 3.4 per cent against the US dollar and 8.7 per cent against the euro, making it the world’s worst performing currency. At 33.5 per dollar it is now trading at levels last seen during the financial crisis in 2009." Worth a read.http://www.ft.com/cms/s/0/f67f18fa-fd0b-11e4-800d-00144feabdc0.html(Google the article name if you can't see it using the link.) Link to comment Share on other sites More sharing options...
lopburi3 Posted May 18, 2015 Share Posted May 18, 2015 Actually that decline is by design so appears to be exactly what the government has been trying to do with there interest rate cut. As for that link; no thanks - enough splash screens to kill and once through them you have to register to read anything. The Google option leads to a survey question/answer session or registration to read anything. Link to comment Share on other sites More sharing options...
toss Posted May 18, 2015 Share Posted May 18, 2015 (edited) I went through the same route as you Lopburi3 but then Googled "Thai Baht Tripped" and then clicked on the heading "Asian currencies tripped....." (The 5th heading on the page, and it worked)!?! Edited May 18, 2015 by toss Link to comment Share on other sites More sharing options...
TPI Posted May 18, 2015 Share Posted May 18, 2015 Isn't this what the NCPO wanted? The THB has been overvalued for over a year now and it has made it impossible for the government to trade in commodities in a competitive way! Roll on, roll on I say!Let's see the Ozy dollar trade around 30:1! Link to comment Share on other sites More sharing options...
johnopolo Posted May 18, 2015 Share Posted May 18, 2015 I haven't read the article but the statement "the world’s worst performing currency" is absurd. Go read this (there are also many other authoritative sites). Link to comment Share on other sites More sharing options...
MobileContent Posted May 18, 2015 Share Posted May 18, 2015 I thought the Ruble was the worse currency. I wished the Baht would tank to 40 Baht a Euro as I am next month of for my one year visa and a month holiday in Berlin, Paris and London. Guess it's time to buy some Euros. Link to comment Share on other sites More sharing options...
AyG Posted May 18, 2015 Author Share Posted May 18, 2015 I haven't read the article but the statement "the world’s worst performing currency" is absurd. Go read this (there are also many other authoritative sites). Some might say that commenting without reading the article is also absurd. In context the quotation is 100% accurate. Link to comment Share on other sites More sharing options...
SiSePuede419 Posted May 18, 2015 Share Posted May 18, 2015 "Global bond rout" 555. Insane. Rout defeat and cause to retreat in disorder A piddling 3+% decline is neither defeat nor disorder. The value of EXISTING bonds only go up, if interest rates decline. Since rates are near zero, there's nowhere to go but up. You could see this coming for years now. Whoop di doo. No more free money. Boo hoo hoo. Only an absolute idiot would think this is the end of the world... Link to comment Share on other sites More sharing options...
Robert24 Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. Link to comment Share on other sites More sharing options...
bazza40 Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. Link to comment Share on other sites More sharing options...
AyG Posted May 18, 2015 Author Share Posted May 18, 2015 My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. Simply not true as this chart shows: http://www.xe.com/currencycharts/?from=USD&to=THB&view=10Y Link to comment Share on other sites More sharing options...
Tywais Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. The baht was floated (removed from US peg) in July 1997 during the crisis that tumbled through out SEA, Thailand leading the way. They used up most of their reserves trying to defend it but couldn't and part of the agreement with the IMF was to change to a basket of currencies. Link to comment Share on other sites More sharing options...
TheAppletons Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. False. Link to comment Share on other sites More sharing options...
Robert24 Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. no peg to the $ since 1998. Link to comment Share on other sites More sharing options...
Srikcir Posted May 18, 2015 Share Posted May 18, 2015 A falling baht is fine if the GDP growth rate increases proportionally. But should the GDP remain stagnant or only slightly increase (<0.5%), Thailand goes into deflation that begins to impact the domestic economy due to spiraling cost of production and lack of investment capital. Venzuela is a classic example. There are no current Junta policies that would reverse the slide in GDP growth until maybe 2016. Link to comment Share on other sites More sharing options...
Farang99 Posted May 18, 2015 Share Posted May 18, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. 50 years ago the Thai baht was pegged at 25 to the US$ and 40 to the GB£. This worked when these currencies were relatively stable, but with the world financial markets in disarray it was no longer appropriate, and they now stand wherever the market will let them. Link to comment Share on other sites More sharing options...
shaurene Posted May 19, 2015 Share Posted May 19, 2015 Ok let's look at the 2 currency's mentioned. For a start the Thai baht did not weaken the US$ has strengthened over all currency's The Euro crashed mainly because of the Greek problem and helped by the problems with Portugal, Italy, France and Spain. Over the last couple of weeks the Greek situation was starting to look like a deal could be struck and the Euro strengthened a lot. As soon as Greece is sorted out you will see the Euro rise a lot. 3 months ago I bought from Super Rich 1.000,000 Baht worth of Euro I sold it back on Monday morning and made 20,000 baht. The Thais have pegged their currency to the US$ for many years. Now they are starting to see some sense. Their exports where very poor and they started to pull away from supporting the Baht and also cut interest rates. If you listen to all the so called experts you would have lost a fortun. Some of the predictions given early to mid last year by the experts. 1: Silver will be $50-$100 an ounce by the end of 2014, it is $17. 2: The US stock market will crash by the end of 2014 it raced away and it broke all records. 3: The US$ would crash by the end of 2014. 4: The US oil boom, oil crashed down to a low of $40 the experts said it will go to a low of $30,ha. It is now over $60. The USA can manipulate anything they want they are experts at it. Quite a few of the other large country's want to kill the $ as the main currency, they got no chance. The US$ will always be the best safest currency to hold. Link to comment Share on other sites More sharing options...
shaurene Posted May 19, 2015 Share Posted May 19, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. no peg to the $ since 1998.[/quote Rubbish, sorry.] Link to comment Share on other sites More sharing options...
AyG Posted May 19, 2015 Author Share Posted May 19, 2015 The US$ will always be the best safest currency to hold. They used to say that about the denarius. Link to comment Share on other sites More sharing options...
SiSePuede419 Posted May 19, 2015 Share Posted May 19, 2015 "US$ will always be the best safest currency to hold." Yes, due to the massive systemic corruption in China and the, ahem...Teutonic problem Europe keeps having periodically? The Dollar will surely last until human extinction. Cockroaches will enjoy the luxurious thread count of US dollars for their bedding, 555 Link to comment Share on other sites More sharing options...
Naam Posted May 19, 2015 Share Posted May 19, 2015 that's rubbish. the thai baht has only recently become weaker, before it's been incredibly strong especially against other Asian currencies. The export industry has been complaining a long time because the baht was so strong and now after various actions from the BoT the baht finally weakened a bit. Certainly not the worst performing currency in the world. My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. 50 years ago the Thai baht was pegged at 25 to the US$ and 40 to the GB£. This worked when these currencies were relatively stable, but with the world financial markets in disarray it was no longer appropriate, and they now stand wherever the market will let them. no fairy tails or "understandings" please! here are the details: http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=2 Link to comment Share on other sites More sharing options...
KittenKong Posted May 19, 2015 Share Posted May 19, 2015 My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. The value of the Baht has been manipulated for years, which is easy enough to do when your currency is subject to exchange controls and not extensively traded internationally. Recently the Thai authorities have been encouraging the Baht to slide slightly to maintain competitivity. Is that a peg? Semantics really. Link to comment Share on other sites More sharing options...
IMA_FARANG Posted May 19, 2015 Share Posted May 19, 2015 My understanding is the Thai baht has been pegged to the US dollar for years, and it's only recently the peg has been removed. The value of the Baht has been manipulated for years, which is easy enough to do when your currency is subject to exchange controls and not extensively traded internationally. Recently the Thai authorities have been encouraging the Baht to slide slightly to maintain competitivity. Is that a peg? Semantics really. Link to comment Share on other sites More sharing options...
edwinchester Posted May 19, 2015 Share Posted May 19, 2015 Ok let's look at the 2 currency's mentioned. For a start the Thai baht did not weaken the US$ has strengthened over all currency's The Euro crashed mainly because of the Greek problem and helped by the problems with Portugal, Italy, France and Spain. Over the last couple of weeks the Greek situation was starting to look like a deal could be struck and the Euro strengthened a lot. As soon as Greece is sorted out you will see the Euro rise a lot. 3 months ago I bought from Super Rich 1.000,000 Baht worth of Euro I sold it back on Monday morning and made 20,000 baht. The Thais have pegged their currency to the US$ for many years. Now they are starting to see some sense. Their exports where very poor and they started to pull away from supporting the Baht and also cut interest rates. If you listen to all the so called experts you would have lost a fortun. Some of the predictions given early to mid last year by the experts. 1: Silver will be $50-$100 an ounce by the end of 2014, it is $17. 2: The US stock market will crash by the end of 2014 it raced away and it broke all records. 3: The US$ would crash by the end of 2014. 4: The US oil boom, oil crashed down to a low of $40 the experts said it will go to a low of $30,ha. It is now over $60. The USA can manipulate anything they want they are experts at it. Quite a few of the other large country's want to kill the $ as the main currency, they got no chance. The US$ will always be the best safest currency to hold. The Euro has risen about 8% against the dollar since February. An extra 2% from SuperRich doesn't seem that much. Link to comment Share on other sites More sharing options...
Berkshire Posted May 19, 2015 Share Posted May 19, 2015 no fairy tails or "understandings" please! here are the details: http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=2 Interesting read. Everyone should read that link before they start making up conspiracy theories. Link to comment Share on other sites More sharing options...
Anon999 Posted May 19, 2015 Share Posted May 19, 2015 Try comparing the charts of the Baht against the US$, GBP and Euro and you see the baht has been very strong up until the recent past. Like all currencies they fluctuate eventually. Link to comment Share on other sites More sharing options...
SunLover2 Posted May 19, 2015 Share Posted May 19, 2015 Bloomberg business news weighs in: http://www.bloomberg.com/news/articles/2015-05-18/baht-in-currency-war-after-first-to-worst-rout-a-year-after-coup SL Link to comment Share on other sites More sharing options...
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