Baht weakens to US$/33.85

[phoenixdoglover]

Unfortunately for Thailand, a weakened baht now will do little to invigorate its economy. Exports will remain stagnant and possibly experience negative growth in terms of REVENUE due to weakened DEMAND for manufactured products and LOWER PRICES for agricultural products from oversupply.

Possible EU and USA sanctions on Thailand seafood will further pressure the value of exports.

Domestic household debt will rise further and strangle domestic consumption and real estate values.

But the good news is that the Royal Thai Navy will have three new submarines and over 1,000 new generals!

Correction: Admirals!

They're going to need a lot of Admirals for that submarine fleet.

[NeverSure]

Furthermore ,the U.S. Is printing it's currency at an astonishing rate,(as are all other world economies) some would say 'UNSUSTAINABLE' rate.

Are you really this ignorant? Who feeds you this crap?

The US does NOT print money to stimulate the economy or for any other purpose other than to match inflation or replace damaged money. There has not been an increase in total USD in the world even after all of the QE.

The "money supply" is increased by allowing banks to loan a higher percentage of their depositors' money by reducing banks' reserve requirements. This increase M2 by making more money available to the economy. Next they lower the interest rates paid and charged at the Fed overnight window to stimulate lending and borrowing.

It is intended to be a stimulus of banks lending and people borrowing. It has zero to do with actual USD in the world.

End of. No, not end of because you need to end your ignorant rants.

[hawthorne]

The Baht has had very good strength against most currencies. A good NO deal from Greece and a big pull back from the interior China stock markets just might put us in a domino affect which no one will be able to predict the outcome. Watch billionaires become millionaires over night. So much wealth could be wiped out over night due to covering falling positions. If this spills into Japan where so many people are stretched as well on margin SE Asian goes with them.

The world can not allow Greece to fail. They will do something.

[timendres]

SOME Important USEFUL FACTS ABOUT COINS & CURRENCY

(Or How Money Became Currency).

Traditionally, the value of a coin was equal to the value of the metal it was made from

THE POUND STERLING was originally, literally just that ,A Pound (lb.)of STERLING SILVER. - This was then split up into smaller pieces for daily use, to give change, you would count the smaller amounts and weigh larger amounts. You could chop a silver penny in half (hence the halfpenny)

12 Troy Ounces = 1 troy pound.

(As a footnote / to buy the same pound in weight of silver today would cost around £240.-50)

But coins made from precious metals had their limitations, there was the traditional practice of 'CHINKING' gold coins together in a bag and collecting the dust and eventually you could gather enough dust together to make another lesser value coin. Or just trade the dust. That was Money!

The following is CURRENCY----

These Days The Physical value of the currency is far less than it's face value – particularly obvious when you think of a piece of paper, it's value is purely NOTIONAL, it is no longer based on the I PROMISE TO PAY THE BEARER ON DEMAND',

it's true worth IN GOLD or SILVER from the Bank of England

So a pound ,as a unit of currency, is a pound,it has no other meaning, It's just a piece of paper! And the more that are produced,(minted) the lower the value will become. (Quantatative Easing !. Or inflation , it's one and the same thing. With the same results.)

Although the paper £1 note has all but disappeared from circulation in the U.K.,the principle is the same with the coins, in fact ,when the price of Copper increased substantially ,in the late 90's --- the 2p.coin was actually worth nearly 3p.---the SCRAP VALUE---- The Bank had to then find a way of minting the coins in steel with a copper coating (and a few other metals). The newer coins can be picked up with a MAGNET, not the older ,copper ones.

Beware the Dollar !!

Before you say I'll change it all into Dollars and I'll be OK. It costs the U.S. Mint 1.5 cents to make a 1 cent coin, and 6 cents to make a nickel (5 cents). A LOSS OF $22 MILLION LAST YEAR.. Furthermore ,the U.S. Is printing it's currency at an astonishing rate,(as are all other world economies) some would say 'UNSUSTAINABLE' rate. And as the WORLDS RESERVE CURRENCY, This WILL lead to all sorts of problems in the future.

Ah, the perpetual misconception of the US Government "printing" currency.

The US Government does NOT print currency.

The US banking system a fractional reserve system. As such every dollar in circulation starts as a loan!

Look at any dollar denominated bill, and you will clearly see "This note is legal tender for all debts public and private".

That dollar bill represents a debt.

In other words, no matter how "loose" the monetary policy, if there was no borrower, no dollars would ever be created.

Furthermore, the US Government cannot print US dollar notes. Only the Federal Reserve has the authority to print currency.

And the currency in circulation has little meaning, as it is only a means of transacting against accounts which are denominated in the reserve currency which is based on debt.

That said, it is a bit of a minor distinction, in the sense that there will always be a willing borrower of US Dollars - that being the US Government. The US Government issues Treasuries, and the Federal Reserve bank is always willing to purchase those treasuries when there are no others willing to loan the money. Hence, the mountain of debt that has accumulated over the years. The only real limit here being the debt ceiling, that the congress seems always willing to raise.

The salient point is this. Previously, when we had currency in the form of gold and silver, which people think of as having real value (which is another discussion entirely, since this is in large part just another fantasy), people could use currency as a store of value. With paper currency based on debt, that is no longer practical. Currencies are now truly meant strictly as a medium of exchange.

GET OVER IT.

Stop thinking of fiat currencies as a store of value. Given the context of modern monetary systems, you would have to be a fool to put cash under your mattress and expect it to hold it's value. In the modern world, cash is no longer a store of value, it is a medium of exchange. You now need to think in terms of converting the cash handed to you into other instruments in order to store your wealth. In other words, you need to purchase real estate, own a little gold, invest in stocks and bonds (again, only paper representing something else), build a business, buy a valuable piece of jewelry, etc.

All value is relative and perceived. If you think gold has real value, wait until you are in a war zone and the only thing people want are ammunition, penicillin, and canned beans. If you think stocks have real value, wait until there is a crash and no one wants them. People in California in 2005 thought houses were the greatest investment in history, until 2010 when most had lost their life's savings as their value plummeted.

We are no longer in Kansas Dorothy. It is not the 1800's in the wild west. It is a complex financial world that allows for the modern society that we take for granted. If you cannot keep up with it, then you need to pay for a professional who can assist you in keeping up with it. Just like you have to pay for a high-tech mechanic to deal with your modern German car.

Finally, I think we can all agree that the current fractional reserve system has run it's course. The governments of the world have misused their line of credit to implement insane policies and wasted mountains of money creating debt that, by all measures, can never be repaid. There are consequences to this stupidity, which are difficult to understand and/or predict, but they are for the most part not good. Furthermore, due to the very nature of a fractional reserve banking system, which requires geometric growth, the system has a built-in limit. We simply cannot grow real economies geometrically to match the mathematical requirement of the fractional reserve system. Many have argued, and I think rightly so, that we need a new model in this modern world.

[anon7867763]

Xe at 34.06

Xe is not a real price, it says so on their website.

I always use the Bangkok Bank website and look at the TT rate, as that's what I get if I transfer money.

and that´s not the real price either , what should be quoted is the middle rate not the buying rate so XE is closer to the actual rate.

[anon7867763]

If you go into any bank today dollar rate is like 33 so plz tell me where I get 33.85 to the dollar

BKK Bank at lunch today was exchanging at 33.49.

Try Super Rich, much better rates than any bank

[Whyamiandwhatamidoinghere]

China is licking it's chops on Greece. They can use it as propaganda in their quest to change the reserve currency to yuan. Can't wait for their housing bubble to burst. Their markets have lost 2 trillion in sell-off. Of course only the little man lost his money. Thailand is in for a rude awakening.

[Thai at Heart]

SOME Important USEFUL FACTS ABOUT COINS & CURRENCY

(Or How Money Became Currency).

Traditionally, the value of a coin was equal to the value of the metal it was made from

THE POUND STERLING was originally, literally just that ,A Pound (lb.)of STERLING SILVER. - This was then split up into smaller pieces for daily use, to give change, you would count the smaller amounts and weigh larger amounts. You could chop a silver penny in half (hence the halfpenny)

12 Troy Ounces = 1 troy pound.

(As a footnote / to buy the same pound in weight of silver today would cost around £240.-50)

But coins made from precious metals had their limitations, there was the traditional practice of 'CHINKING' gold coins together in a bag and collecting the dust and eventually you could gather enough dust together to make another lesser value coin. Or just trade the dust. That was Money!

The following is CURRENCY----

These Days The Physical value of the currency is far less than it's face value – particularly obvious when you think of a piece of paper, it's value is purely NOTIONAL, it is no longer based on the I PROMISE TO PAY THE BEARER ON DEMAND',

it's true worth IN GOLD or SILVER from the Bank of England

So a pound ,as a unit of currency, is a pound,it has no other meaning, It's just a piece of paper! And the more that are produced,(minted) the lower the value will become. (Quantatative Easing !. Or inflation , it's one and the same thing. With the same results.)

Although the paper £1 note has all but disappeared from circulation in the U.K.,the principle is the same with the coins, in fact ,when the price of Copper increased substantially ,in the late 90's --- the 2p.coin was actually worth nearly 3p.---the SCRAP VALUE---- The Bank had to then find a way of minting the coins in steel with a copper coating (and a few other metals). The newer coins can be picked up with a MAGNET, not the older ,copper ones.

Beware the Dollar !!

Before you say I'll change it all into Dollars and I'll be OK. It costs the U.S. Mint 1.5 cents to make a 1 cent coin, and 6 cents to make a nickel (5 cents). A LOSS OF $22 MILLION LAST YEAR.. Furthermore ,the U.S. Is printing it's currency at an astonishing rate,(as are all other world economies) some would say 'UNSUSTAINABLE' rate. And as the WORLDS RESERVE CURRENCY, This WILL lead to all sorts of problems in the future.

Ah, the perpetual misconception of the US Government "printing" currency.

The US Government does NOT print currency.

The US banking system a fractional reserve system. As such every dollar in circulation starts as a loan!

Look at any dollar denominated bill, and you will clearly see "This note is legal tender for all debts public and private".

That dollar bill represents a debt.

In other words, no matter how "loose" the monetary policy, if there was no borrower, no dollars would ever be created.

Furthermore, the US Government cannot print US dollar notes. Only the Federal Reserve has the authority to print currency.

And the currency in circulation has little meaning, as it is only a means of transacting against accounts which are denominated in the reserve currency which is based on debt.

That said, it is a bit of a minor distinction, in the sense that there will always be a willing borrower of US Dollars - that being the US Government. The US Government issues Treasuries, and the Federal Reserve bank is always willing to purchase those treasuries when there are no others willing to loan the money. Hence, the mountain of debt that has accumulated over the years. The only real limit here being the debt ceiling, that the congress seems always willing to raise.

The salient point is this. Previously, when we had currency in the form of gold and silver, which people think of as having real value (which is another discussion entirely, since this is in large part just another fantasy), people could use currency as a store of value. With paper currency based on debt, that is no longer practical. Currencies are now truly meant strictly as a medium of exchange.

GET OVER IT.

Stop thinking of fiat currencies as a store of value. Given the context of modern monetary systems, you would have to be a fool to put cash under your mattress and expect it to hold it's value. In the modern world, cash is no longer a store of value, it is a medium of exchange. You now need to think in terms of converting the cash handed to you into other instruments in order to store your wealth. In other words, you need to purchase real estate, own a little gold, invest in stocks and bonds (again, only paper representing something else), build a business, buy a valuable piece of jewelry, etc.

All value is relative and perceived. If you think gold has real value, wait until you are in a war zone and the only thing people want are ammunition, penicillin, and canned beans. If you think stocks have real value, wait until there is a crash and no one wants them. People in California in 2005 thought houses were the greatest investment in history, until 2010 when most had lost their life's savings as their value plummeted.

We are no longer in Kansas Dorothy. It is not the 1800's in the wild west. It is a complex financial world that allows for the modern society that we take for granted. If you cannot keep up with it, then you need to pay for a professional who can assist you in keeping up with it. Just like you have to pay for a high-tech mechanic to deal with your modern German car.

Finally, I think we can all agree that the current fractional reserve system has run it's course. The governments of the world have misused their line of credit to implement insane policies and wasted mountains of money creating debt that, by all measures, can never be repaid. There are consequences to this stupidity, which are difficult to understand and/or predict, but they are for the most part not good. Furthermore, due to the very nature of a fractional reserve banking system, which requires geometric growth, the system has a built-in limit. We simply cannot grow real economies geometrically to match the mathematical requirement of the fractional reserve system. Many have argued, and I think rightly so, that we need a new model in this modern world.

OK, lets not call it printing money, let's call it selling govt bonds then.

Now can we agree that the US govt has pumped how many hundred billions of long and medium term USD debt into the market thus inflating the USD money supply driving the value of the USD down for about 5 years now?

They didn't print USD, they supplied cash to the market.....

[slipperylobster]

If you go into any bank today dollar rate is like 33 so plz tell me where I get 33.85 to the dollar

You don't. Best to look at it as a percent increase. I used to get 28 or 29 just three years back....when I exchanged money. If I get 33....that is 400 baht more than three years ago..for each 100 dollars I exchange. I cash three thousand dollars a month...quite a pay raise...actually. More than my monthly car payment with a tank of gas. (Yes..I also look at the 3 year growth...if it remains over 33....as a free car.

Edited June 29, 2015 by slipperylobster

[ilostmypassword]

Get back to 42 (per USD), when I came to TH 11+ years ago

Indeed. That's when I bought my 11M baht condo and saved lots of money.

how do you save lots of money by buying a 11M condo? You would have saved a lot more having exchanged the USD at that time and keeping it in the bank at 4% per year or more :-)

How do you know what his condo is worth today?

[falang07]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

[technologybytes]

If you go into any bank today dollar rate is like 33 so plz tell me where I get 33.85 to the dollar

Just in case this isn't a joke, I will explain.

The rate on the street is for cash, the rate that most expats talk about is the rate that you get when you make a money transfer into Thailand, The cash rate at an exchange is always lower,

[Guest]

If you go into any bank today dollar rate is like 33 so plz tell me where I get 33.85 to the dollar

Just in case this isn't a joke, I will explain.

The rate on the street is for cash, the rate that most expats talk about is the rate that you get when you make a money transfer into Thailand, The cash rate at an exchange is always lower,

OK.

The easiest way to not get confused about currency is to look at it from the bank's perspective.

When you see "The Baht is at 34" the bank is saying, "if you come and want to buy USD, each will cost you (depending on denomination) 34 Baht."

Conversely, if you walk in (in the current chart supplied below) with a $100 Bill, and say, "please convert this to the Baht" they will give you 33.38 per dollar.

If you look closely to the "TT" (transfer) line, you will see that our friend Technologybytes has nailed it, and the commonly referred to rate... is the TT rate. In this case 33.63

This is called the "spread" and is how currency buyers / sellers make money.

Edited June 30, 2015 by Guest

[Ricardo]

<snip for brevity>

The world can not allow Greece to fail. They will do something.

... just like they did something for Zimbabwe, Sudan & Eritrea ?

The Greek economy cannot cope with the disciplines imposed by remaining within the Euro-system, it doesn't mean that they have to leave the EEC, just that the new-Drachma will depreciate 10%-15% per-annum and the tourist-hordes will return.

This is really going to piss off the non-USA expats.

Not me, for one, as 70% of my investments are in the USA or dollar-denominated shares/bonds, so I'm enjoying the ride but wondering how much longer it can go on for ?

[Guest]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

So second hand condo prices are rising in Thailand? The value of condos in the CBD / BKK has skyrocketed in the past decade.

Now that is a news for me I am sure it is, which really speaks volumes about the value of your opinions.

At 4% per year ... Again, you previously said that he could have gotten 4% leaving his money at home in the USA, where exactly is this risk free income derived?

(and I bet there were even better bargains 11 year ago) Since you have no idea what he bought, this is an absurd statement .. for all you know he bought a penthouse on Soi Thonglor that is worth 250,000,000 today.

it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. It may be "decent" but most likely,not the one he has.. 36.000 in the CBD is not much these days.

Having exchanged at 42 and selling now at 33, he would have made much more .... OK, this may go over your head, but imagine you got in a time machine, and you and this guy bought 11,000,000 THB on the same day. The only difference is, on that day, the USD was 27% stronger than the currency you used.

and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings. He never said he was selling it! But if he did, and here is what is lost on you IF he sold it today for 11,000,000 ... his purchase price, bought back his USD .. he would be up 27% Forget about the rent he saved, forget about not paying taxes on the income he would need to MAKE the rent, forget about the fact this is fantasy and his place has probably gone from 45,000 per Sq Meter to 100,000 per Sq Meter. This thread is about currency, and he KILLED it on this point alone!

I am slack jawed that you either do not understand or ignore the fact he has lived in thei place for 11 years. He has recieved 11 years of "Utility" from that. The amount of a person's total utility corresponds to the person's level of consumption. Usually, the more the person consumes, the larger his or her total utility will be.

In other words, instead of generating (imaginary) 4% income, paying taxes on it, transfer fees, etc.... His Utility is equal to or greater than the value of the revenue it would take to cover whatever it would take to rent the exact same place.

Do you really not understand that even if we used all your numbers, he has consumed 4,840,000 worth of rent ... and still OWNS an asset that has appreciated in value in a very favorable currency exchange environment?

You know, it sucks having a degree in this and having these debates.

On second thought ...Whatever, you are right ... a guy who is up about 200% +, and has the peace of mind of knowing he always has a roof over his head is an idiot.

Next.

[diehard60]

It needs to be at 35. I think we might see the same thing that happened , when was that? , 15 years ago????/ Would be nice but stay at that rate. Hhahahahahahahha

[somo]

Get back to 42 (per USD), when I came to TH 11+ years ago

Indeed. That's when I bought my 11M baht condo and saved lots of money.

And now it's worth 6M and lost you lots of money. - Just joking

[GOLDBUGGY]

Get back to 42 (per USD), when I came to TH 11+ years ago

Indeed. That's when I bought my 11M baht condo and saved lots of money.

how do you save lots of money by buying a 11M condo? You would have saved a lot more having exchanged the USD at that time and keeping it in the bank at 4% per year or more :-)

It is confusing but here is how it works on paper.

If he paid 11M Baht when he was getting 42 to the Dollar, he would have spent about $262,000 USD. But now, when he is getting 34 to the Dollar, if he sold his Condo for 11M Baht again he would get about $323,500 USD. So this translates into a 23% profit just on currency exchange.

Confusing as he is in reality buying high and selling low, but yet making a profit.

[HooHaa]

If you go into any bank today dollar rate is like 33 so plz tell me where I get 33.85 to the dollar

BKK Bank at lunch today was exchanging at 33.49.

vsau giving 33.70 right now.

[GOLDBUGGY]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

If everyone thought like you we would all be renting a place and not owning one. Which as you know is not the case.

What you keep losing track of here is that in these 9 years he owned this 11M Baht Condo, he was not paying rent on. I am sure he enjoyed his luxury place all these years rent free as well.

But now you are trying to put him in some cheap 1 bedroom condo for 15,000 Baht a month and say it is the Same Same. When it isn't! We don't know if his Condo appreciated in value over these past 9 years, but we can guess that it probably has a little bit at least. For sure his rent would have gone up over these 9 years.

As someone already suggest, 4% in a bank barely keeps up with inflation. Add to this his rent and rental increases and over the years it would have easily eaten up his interest payment on his savings.

Yes, we could all save money if we slept on the beach and ate off a food cart. But who wants to?

[GOLDBUGGY]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

Another thing you fail to realize that if he did not buy this Condo for 11M Baht when he did 9 years ago, he had no reason to exchange this amount of USD into Thai Baht. So there is a better than good chance he would have kept it in USD.

Today, the same amount of USD can only buy 8.9M Baht. So how much would he have gained again by doing it your way?

Sure! It is always easy to say you could have done this, or you could have done that, when you know the future. Don't we all wish we knew what Apple Computers was going to do 9 years ago. Or when Bill Gates started Microsoft and you could buy his stock over the counter for pennies share in the late 70's and early 80's. Or the exchange rate of the Thai Baht. But we didn't know....until now.

[willyumiii]

Nixen told the rest of the world that the dollar was to be the reserve currency in 1951 when the US decided that being tied to the Gold reserves did not allow the Government to spend what it wanted to sustain the Viet Nam war, The result has been that the true value of the dollar is practically nil, in fact all the Fiat (paper) currencies are in the same boat. None of them have anything like enough gold or silver reserves in their central banks to support the amount of paper in circulation, so if the Greek situation spreads to other countries and there is a run on the Euro,Pound or Dollar ,the world Financial system will collapse, and it will be far worse that the bank crisis in 2008.

His name was Nixon....

"Tricky Dick"

He was a crook.

How accurate can your information and opinions be if you don't even know the name of this very famous failed American President??

This is 2015

1951 was 64 years ago!

[Chao Lao Beach]

If the manufacturing and tourist industries are to survive the baht must weaken a lot further.

Yes

[Igor]

Willyumiii: Thank you Barry Obama for repairing the Bush damaged US economy!

You can call it repairing the economy but, personally, I call $17 trillion in debt more like paying the bills with a credit card. We're over our limit now and, someday, they'll take a pair of scissors to the credit card. Thanks, indeed, Barry.

Edited July 1, 2015 by Igor

[falang07]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

Another thing you fail to realize that if he did not buy this Condo for 11M Baht when he did 9 years ago, he had no reason to exchange this amount of USD into Thai Baht. So there is a better than good chance he would have kept it in USD.

Today, the same amount of USD can only buy 8.9M Baht. So how much would he have gained again by doing it your way?

Sure! It is always easy to say you could have done this, or you could have done that, when you know the future. Don't we all wish we knew what Apple Computers was going to do 9 years ago. Or when Bill Gates started Microsoft and you could buy his stock over the counter for pennies share in the late 70's and early 80's. Or the exchange rate of the Thai Baht. But we didn't know....until now.

My point was this: 9 years ago, instead of buying the condo, buy THB at the very good exchange rate of 42 (11M Baht would be 261,904 USD) and keep it in the bank at 4% (and I am sure there were much higher interest rates at that time, perhaps even 8% for amount like this on long term deposits). Today, after 9 years, you suddenly have got 15,7M Baht, and if you change it back to dollars, you have made a fortune, too, since at the current exchange rate of 33 you would get 474437 USD. That is a breathtaking profit of 181% in 9 years.

Edited July 2, 2015 by falang07

[falang07]

So if you reread my original post, I said that instead of buying the condo, he should have just bought THB at the very good exchange rate of 42. I did not say (as you imply) that he should have kept the USD at that time of good exchange rate and only change now when the exchange rate was not that good like before.

[TheAppletons]

So second hand condo prices are rising in Thailand? Now that is a news for me At 4% per year (and I bet there were even better bargains 11 year ago), it is 440,000 THB a year, do not tell me you can not rent a decent condo for this. Having exchanged at 42 and selling now at 33, he would have made much more and no hassle in trying to sell an old condo in an market with a huge surplus of new units in new buildings.

Another thing you fail to realize that if he did not buy this Condo for 11M Baht when he did 9 years ago, he had no reason to exchange this amount of USD into Thai Baht. So there is a better than good chance he would have kept it in USD.

Today, the same amount of USD can only buy 8.9M Baht. So how much would he have gained again by doing it your way?

Sure! It is always easy to say you could have done this, or you could have done that, when you know the future. Don't we all wish we knew what Apple Computers was going to do 9 years ago. Or when Bill Gates started Microsoft and you could buy his stock over the counter for pennies share in the late 70's and early 80's. Or the exchange rate of the Thai Baht. But we didn't know....until now.

My point was this: 9 years ago, instead of buying the condo, buy THB at the very good exchange rate of 42 (11M Baht would be 261,904 USD) and keep it in the bank at 4% (and I am sure there were much higher interest rates at that time, perhaps even 8% for amount like this on long term deposits). Today, after 9 years, you suddenly have got 15,7M Baht, and if you change it back to dollars, you have made a fortune, too, since at the current exchange rate of 33 you would get 474437 USD. That is a breathtaking profit of 181% in 9 years.

Why on earth would someone buy 11M thb unless they were going to use it to purchase something (or are professional currency traders)? Is that what you did? How did that work out for you?

Your original point was asinine and you were called on it. Get over it.

[falang07]

When the exchange rate is good, I buy/sell THB. Now that EUR is low against THB, I do not buy THB but instead live off the THB I have exchanged when it was good. And I will buy more THB again if EUR gets over 44. So yes, I did it and will continue doing it regularly so I do not see any reason why anyone else would not do it, too. It made pretty good sense 9 years ago to buy THB.

[ToddinChonburi]

I got 33.43 at GSB bank for US money I am not complaining.

[konying]

When the exchange rate is good, I buy/sell THB. Now that EUR is low against THB, I do not buy THB but instead live off the THB I have exchanged when it was good. And I will buy more THB again if EUR gets over 44. So yes, I did it and will continue doing it regularly so I do not see any reason why anyone else would not do it, too. It made pretty good sense 9 years ago to buy THB.

What makes you think Euro will be over 44 anytime soon?