Thai economy unaffected by weakening Yuan

[webfact]

Thai economy unaffected by weakening yuan

BANGKOK, 12 August 2015 (NNT) – The Ministry of Finance and the Bank of Thailand (BOT) have confirmed that China’ decision to weaken its currency, Yuan, won’t affect the country.

Speaking about the impact of the weakening Yuan on the country’s tourism, Finance Minister Sommai Pasee said prices of Thai products and services would be higher by no more than two percent, which would be marginal for Chinese tourists.

As for the export sector, Mr. Sommai disclosed that the Ministry of Commerce was working on ways to cope with China’s economic measures. He has ruled out the possibility of lowering interest rates to devalue the Thai baht as the general public would be affected.

Beijing has recently announced its decision to its currency to 6.22 yuan per dollar, the lowest during the past three years, to boost its export competitiveness. The devaluation is intended to make Chinese products cheaper than those produced by rival exporters.

Meanwhile, the Bank of Thailand reported that the weakening yuan had caused the value of Thai baht to fall by 0.35 percent. This will foster China’s economy in the long run and will benefit the region’ economy accordingly.


-- NNT 2015-08-12

[bamnutsak]

Exports could take a hit

2% devaluation of Chinese yuan tipped to hurt Thai exporters

THAI EXPORTERS' competitiveness will take a hit if China continues its weak currency policy, following yesterday's surprise 2 per cent devaluation of the yuan.

Kobsidthi Silpachai, head of Market and Economic Research at Kasikornbank, said China's devaluation is understood to be a policy tool to shore up its sagging economy after Beijing earlier implemented drastic measures to deal with bubbles in its stock markets.

http://www.nationmultimedia.com/business/Exports-could-take-a-hit-30266409.html

[Thai at Heart]

This happened yesterday, and they are certain this won't have any effect?

[Prbkk]

This happened yesterday, and they are certain this won't have any effect?

It seems they haven't caught up with the fact that it's another 2% today in addition to yesterday's cut. Clearly what is happening in China will have an impact. In respect of tourism it could turn out to be a plus as more Chinese look for cheaper, closer alternatives to UK, Europe, US.

[bangkokfrog]

No country can artificially support its markets in the long term. Sooner or later the s__t will hit the fan. Let's hope Thailand's new bosom buddy China doesn't tank like Russia. If so, we are all in for a rough ride.

[Nick167]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

[Loptr]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

China's economy is export-centric, no matter how they attempt to shift to more domestic consumption, it just isn't happening fast enough... China is faltering due to reduced exports, which means that the economies of their western customers, the US and EU, are in decline... So sit back and bask in the Chinese meltdown, because it will be coming soon enough to the west... Hell, it would have already happened in the west if the politicians had the balls to call the banksters on their criminal acts and let them fail, instead of propping them up with taxpayer $$$... It's a giant shit sandwich and eventually we are all going to have to take a bite...

[rijb]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

Many of those 'arse lickers' predict the US economy will sink and collapse.

[dcutman]

This happened yesterday, and they are certain this won't have any effect?

China is about to absolutely hammer some of the weakest economies in the world http://finance.yahoo.com/news/china-absolutely-hammer-weakest-economies-172044121.html

Leave it to the the Thai optimist to come out with a statement like this after just 24 hours. It is true the Thai economy has not been effected, yet, but most likely 3rd quarter GDP will show its effect as well as yet another revised outlook on yearly GDP growth. 2%?

[Somtamnication]

These people with their head in the sand. SOMETHING will affect it's economy but by then it will be too late. Good riddance, Thailand!

[Jimlove]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

Agree - Hang Seng Index is Down 2,5% today so thats good news ... The sooner this market collapses (again) the worse Thailand will be hit no matter what these fools say ... They actually think Thailand is rock solid but even these idiots are gonna learn about the real World and not this fake society ...

[slapout]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

Many of those 'arse lickers' predict the US economy will sink and collapse.

I would go far as to predict that what one is wishing for and what thether one says is being predicted will eventually become fact Nothing is forever, especially with the human fickle fingers in the pot.

[Naam]

I am praying that the Chiense economy sinks and collapses. will be fun to see how its arse lickers survive then.

Agree - Hang Seng Index is Down 2,5% today so thats good news ... The sooner this market collapses (again) the worse Thailand will be hit no matter what these fools say ... They actually think Thailand is rock solid but even these idiots are gonna learn about the real World and not this fake society ...

Hang Seng Index is Down 2,5% today so thats good news ...

[Thian]

[NeverSure]

China's economy is investment driven, not export driven. Exports are the by-product of the investors coming in and building factories, equipment, and also the Chinese government investing in infrastructure. Of course there has also been the massive investment by the Chinese in building including the infamous ghost cities.

When investors thought the emperor had clothes, the money poured in. It drove the stock market until someone "suddenly saw" the massive overvaluation. Now everything is contracting as reality sets in. China will import only about 1/2 as much steel and copper this year just as an example of what can happen to countries which rely on exporting those commodities to China. One of the biggest hits here will be taken by Australia.

Investments that might have gone to China in the past have been going to smaller SE Asian countries such as Vietnam and The Phils and to Mexico and other places. Wages and other costs have gotten to be too high in China. An attitude of entitlement won't impress investors.

An investment based economy relies on continued investment where a true export economy would need only to maintain exports. Growth must be present with investments (continuous new investments) while it doesn't have to be so much with pure manufacturing. When looking at data for the Chinese economy the investment numbers and the commodity import numbers are the real indicators of what's happening. It isn't pretty.

Cheers.

[elgordo38]

Exports could take a hit

2% devaluation of Chinese yuan tipped to hurt Thai exporters

THAI EXPORTERS' competitiveness will take a hit if China continues its weak currency policy, following yesterday's surprise 2 per cent devaluation of the yuan.

Kobsidthi Silpachai, head of Market and Economic Research at Kasikornbank, said China's devaluation is understood to be a policy tool to shore up its sagging economy after Beijing earlier implemented drastic measures to deal with bubbles in its stock markets.

http://www.nationmultimedia.com/business/Exports-could-take-a-hit-30266409.html

One commentator on TV stated that the devaluation over the next couple months could be as high as 10% The powers that be here are still on their "stay happy" trip. No worries here over the devaluation. If they spin it a bit they may even come up with some fairy dust as to how it will benefit the Thai economy.

[DogNo1]

The big companies that both export finished products to China as well as buy parts from them will be doubly damaged. Think Apple.

[Fat Haggis]

There could be a global plague, killing all on the planet, apart from those in power in Thailand, and they'd still spin it into something positive .. world dies, but our beaches are clear, and our economy is booming !!

[MaiChai]

I am surprised Thailand has not devalued. They have needed to do this for the last year or two. At least the Chinese have the bottle to do it.

[Thai at Heart]

The big companies that both export finished products to China as well as buy parts from them will be doubly damaged. Think Apple.

Hardly. They sell relatively few bits of gear in China, but it's all made there. Everything China makes just got cheaper. Let's see if the prices drop.

[Thai at Heart]

I am surprised Thailand has not devalued. They have needed to do this for the last year or two. At least the Chinese have the bottle to do it.

U don't get it. The baht is not managed like the yuan. It's already down 20% in 5 years. How much more would u like?

[NongKhaiKid]

Yesterday the television business news on various channels was reporting the immediate and potential effects including for Asia but as ever nothing ever affects LoS.

Mr. T must be making a fortune exporting all the sand needed here for head burying.

[Thai at Heart]

Yesterday the television business news on various channels was reporting the immediate and potential effects including for Asia but as ever nothing ever affects LoS.

Mr. T must be making a fortune exporting all the sand needed here for head burying.

Incredible huh. They believe that their economy even gets close to being mentioned in the same breath, as the USD, euro, pound or yuan.

These currencies can squish the baht with a small change in policy. The yuan wants some room to move. Everyone needs to get out of the way or get squished.

[NongKhaiKid]

The usual stupid bravado from Teflon LoS but as soon as a negative set of figures is released from any source the fall in the yuan will be blamed.

[Christie Paul]

Chinese markets have been overheated for some time. Very likely they'll come off further and the rest of Asia with it.

To those who are praying for Chinese markets to collapse and for countries like Thailand to sustain economic damage as a a result, might want to consider the fact that the China and Asia have surpluses, while the West is hugely indebted. Consequently the main losers of a melt down of Chinese markets, will be Western bond markets, treasuries and equities. And because of underlying debts - it's the West that will utterly melt down and it's Asia that will recover.

[Dibbler]

"As for the export sector, Mr. Sommai disclosed that the Ministry of Commerce was working on ways to cope with China’s economic measures."

So the Thai economy will be impacted by the devaluation in the currency. Contradictory clap-trap reporting. No economy that has trade with China will NOT be affected by currency changes. The question is will it be just a little negative or really negative impact.

[Usernames]

In choosing China as its best friend and economic umbilical cord, Thailand has chosen poorly.

[Fairynuff]

You not understand. Is Thailand not you country. Thailand not same you country

[AlphMichaels]

Little corroborative basis for his statements. These moves by China have global economic impact. If it works, better for TH. If it doesn't, who knows. End of the day China is playing games with currency markets and it could backfire.

[little mary sunshine]

Wishful Thinking!