Central Bank says concern with drought causes baht weakening

BANGKOK: -- The baht currency has weakened faster by two percent this week against US dollars than the previous week due to external and internal factors, said Mrs Chanthawan Sucharitkul, assistant governor of Bank of Thailand, on Thursday.

External factors include speculation that the Federal Reserves may increase policy interest rate within this year; the drop of global gold price to less than 1,000 US dollars per ounce prompting increased demand in gold and demand in US dollars, explained Mrs Chanthawan.

Concern over economic slowdown, effects from drought and slow disbursement of government spending were cited as internal factors contributing to the weakening of the baht against US dollars.

However, Mrs Chanthawan said that the central bank did not detect any abnormal currency speculation. The baht has weakened in accordance with the trend of other currencies in the region, she added.

However, she cautioned that fast weakening of the baht currency might lead to fluctuations which could pose an obstacle to adjustment of the real sector of the economy.

Source: http://englishnews.thaipbs.or.th/central-bank-says-concern-with-drought-causes-baht-weakening

-- Thai PBS 2015-07-23

What she is really trying to say is, the baht is goosed, nackered and fully stuffed. Hooray at last, the Thai Baht is the horses arse.

What she is really trying to say is, the baht is goosed, nackered and fully stuffed. Hooray at last, the Thai Baht is the horses arse.

I think it's more the case the USD is no longer the horses arse.

QUOTE :the drop of global gold price to less than 1,000 US dollars per ounce prompting increased demand in gold and demand in US dollars, explained Mrs Chanthawan.

I suppose when you just lie about the facts, you can justify anything.

QUOTE :the drop of global gold price to less than 1,000 US dollars per ounce prompting increased demand in gold and demand in US dollars, explained Mrs Chanthawan.

I suppose when you just lie about the facts, you can justify anything.

according to a gold shop owner that i know,Thais don't buy gold when its low,they buy when it's expensive, a logic that has even him stumped

It is called greed. If something is going up and becoming expensive, the greedy ones expect and hope that it will continue forever and start buying

good the governement can blame THE RAIN for bad economic policy

no loss of face for nobody

QUOTE :the drop of global gold price to less than 1,000 US dollars per ounce prompting increased demand in gold and demand in US dollars, explained Mrs Chanthawan.

I suppose when you just lie about the facts, you can justify anything.

$1,083/oz currently and falling so she was a bit premature but it may get there. What she could have said, is that with price of gold falling, demand from Thai's is increasing, and since all gold is bought with US dollars, baht has to be sold and dollars acquired. Therefore, Thais buying gold weakens the baht and strengthens the dollar. Thai's, Chinese, Indians, please continue to buy all the gold you can. Thank you.

"The baht currency has weakened faster by two percent this week against US dollars than the previous week due to external and internal factors"

No kidding, Sherlock...