No measures needed to counter yuan devaluation: Thai FM Sommai

[webfact]

No measures needed to counter yuan devaluation: Sommai
The Nation

BANGKOK: -- Thailand will need no measures to counter the ramifications caused by the yuan devaluation, said Finance Minister Sommai Phasee.

"I discussed with BOT (Bank of Thailand) governor and he assured that the situation is under control and there is no need for additional monetary measures. Thailand’s reserves are enough to withstand the impacts. Thailand could be affected, but the magnitude will be less severe than in other countries.

There would be no fiscal measures either. Our part is to enhance investor confident to woo foreign investment in real sectors," he said in a statement.

On Tuesday, the People Bank of China (PBOC) moved the guiding rate for the yuan 2 per cent downwards against US dollar and on Wednesday it set it at 1.6 per cent lower. Today, in the successive move to weaken the yuan, the central bank put central parity rate at 6.4010 yuan for $1, a drop of 1.11 per cent from the previous day's 6.3306.

Source: http://www.nationmultimedia.com/breakingnews/No-measures-needed-to-counter-yuan-devaluation-Som-30266495.html


-- The Nation 2015-08-13

[worgeordie]

Maybe Thailand should follow China and devalue the Bhat, that would

increase investment,tourists,and exports.

regards worgeordie

[cloudhopper]

Or maybe they shouldn't as that will inevitably result in higher import costs of raw materials, energy and inflation.

[elgordo38]

Tomorrow it will be a different story stay tuned.

[ChrisY1]

No measures needed.........interpreted means "we don't know what to do

[Naam]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

[Naam]

Maybe Thailand should follow China and devalue the Bhat, that would

increase investment,tourists,and exports.

regards worgeordie

it would also suit worgeordie and many others (me too)

[Naam]

China's currency devaluation: Thailand's economic nightmare?

Pornpimol Kanchanalak

Special to The Nation August 13, 2015 1:00 am

[Time Traveller]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

In the last 20 years, the Yuan has been on a one way street to appreciation. Now it is depreciating, despite trade surpluses and $4trillion in fx reserves. Don't you find that a little strange, Klingon?

Edited August 13, 2015 by Time Traveller

[NCC1701A]

I can't wait for October

[NeverSure]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

[midas]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

" The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^{TM "}

i.e. Naam himself !

[Woodsie888]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

Is an 'eggspurt' the same as an expert?

i.e. x being the unknown factor & spurt being a drip under pressure.

Edited August 13, 2015 by Woodsie888

[Srikcir]

Other pronouncements from Sommai this year:

- negative inflation rate would not lead to a deflation

- economy through investment not domestic spending

- Thai economy would expand by 3.5%

Sommai has no creditability. I expect he'll be replaced in the cabinet reshuffle.

[Naam]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

In the last 20 years, the Yuan has been on a one way street to appreciation. Now it is depreciating, despite trade surpluses and $4trillion in fx reserves. Don't you find that a little strange, Klingon?

forex reserves and trade balances are totally irrelevant especially when the exchange rate of a highly restricted currency can be and is fixed by those who have the power to do so and markets can (by offer and demand) influence the rate only within an allowed band and restrictions* (see below).

why any investor would find that strange is beyond my grasp.

for the record:

-until june 20, 2005 (10 and not 20 years ago) CNY was pegged to the USD,

-only then and caused by political pressure and threat of sanctions the Chinese authorities loosened (very reluctantly) step by step the reigns and let CNY appreciate gradually. now they took two small steps in the opposite direction to suit their plans.

*

RMB ACCOUNTS - RISK DISCLOSURE STATEMENT

RMB Risks

Dealings in RMB may carry additional risks, and the following is a general statement of some of the risks which may apply, depending on the nature of the product concerned:

The RMB is not freely convertible : The RMB is currently not freely convertible and conversion of RMB through banks in Hong Kong is subject to certain restrictions. The exchange rate may not be fully governed by market forces and may be subject to regulation.

Daily Limits: As the conversion of RMB is subject to a daily limit, if this is exceeded it may be necessary to allow time for conversion of RMB from or to another currency.

[Naam]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

" The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^{TM "}

i.e. Naam himself !

coming up as usual with blatant lies little old scared man?

for the record: i have never invested a single penny in China. the closest was a CNY denominated bond of a non-Chinese triple-A rated corporation whereas your personal hero Marc Faber is promoting investment in China since years

[Cake Monster]

" No measure needed " = Thai speak for " Now is time to run away from problem " until problem bites in arse.

[Naam]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

no objection to any of these claims Your Honour. but changing the exchange rate band will not affect any of the stated facts.

the only result i can see is that Chinese exporters will receive an additional small amount of domestic currency when they change their forex earned abroad.

[CaptHaddock]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

no objection to any of these claims Your Honour. but changing the exchange rate band will not affect any of the stated facts.

the only result i can see is that Chinese exporters will receive an additional small amount of domestic currency when they change their forex earned abroad.

An additional 4% of the gross foreign sales, all of which goes straight to the bottom line, resulting from rate changes in 3 days hardly seems like a small amount, especially in view of the low profit margins of Chinese manufacturing.

[Naam]

since january 2008 CNY appreciated vs. THB ~19.5% and now some resident as well as non-resident eggsburts are wetting their pants and shout "Armageddon!" because there was a small reversal of 3%... gimme a break

The devaluation is just a symptom, Naam - the canary in the coal mine. It's not really about the currency but about the massive liquidity crisis in China. China has been trying to prop up its stock market, real estate market, failing banks and shadow banking services due to bad loans all while suffering an 8% decrease in exports.

All indicators in China are negative. China is trying to stimulate. China is experiencing the first real slowdown in investment, job creation and exports in decades. It became accustomed to charts that always went up and it really doesn't know what to do right now.

The eggsburts I see are those who have been trumpeting for years that China is The Next Big Deal^TM while having no idea how dependent China is on investment from the West.

Cheers.

no objection to any of these claims Your Honour. but changing the exchange rate band will not affect any of the stated facts.

the only result i can see is that Chinese exporters will receive an additional small amount of domestic currency when they change their forex earned abroad.

An additional 4% of the gross foreign sales, all of which goes straight to the bottom line, resulting from rate changes in 3 days hardly seems like a small amount, especially in view of the low profit margins of Chinese manufacturing.

-the depreciation is 3.06%,

-whether a Chinese company will fully or benefit at all from this depreciation depends how its competition handles the benefit.

-most likely result will be that manufacturers of products where strong competion exists will lower their prices.

probable end result: zero sum game.