Thai Baht

[usernameunknown]

After you've lived in Thailand for a number of years.....

Do you ever start to forget the value of a thai baht..... or the value of it in your own home country's currency...?

For example, I have "multiplied by 3" for so long.... I always think of 100 baht as being "about $3"..... and 300 baht as "about $10".... ( USD )

But I was a little surprised to realize, the other day, that 300 baht is really only...... $8.28

( see http://www.xe.com )

[chiang mai]

I find it helpful, to me personally, to keep my personal accounts in THB, USD and my home currency, it helps me keep perspective.

[Crossy]

I get paid in Baht and (mostly) spend Baht.

Only occasionally do I convert roughly to USD and almost never do I convert to GBP (my 'home' currency). Doing either tends to scare me

[saakura]

When the baht hit 55 to a dollar in 97, my company felt we are unduly benefiting and expat contracts were changed to being paid 60% in usd and 40% in Baht. I have been working here for 25yrs and will retire in another 10+ yrs, so Thai Baht is my main currency though i send my retirement funds overseas for hedging risks.

[lovelomsak]

Being Canadian I planned on 18 baht to the dollar for retirement thats where it was for years.Retired it was 30 baht. Nice jump. Now 25 baht. I got used to the 30 baht mark.so still think with that. I look at 600 baht think $20 but now it is $24, I have to adjust to the new value it is here for the long term.for me as long as oil is weak my dollar is weak.

[Sutty]

Must say 100bht is a 100bht never felt the need to convert back to £. But I never have done no matter where in the world I've been.. I've seen people getting really bogged down comparing prices to home countries. In a nutshell I spent whatever currency it is in the country I'm in.

[Thian]

I have euro's and since it's low i don't care anymore....it's just low and i have to eat/live anyway.

But i still remember the good days when a euro was 50 baht, now it's 38.4 and that's a different story. For that price many products are cheaper in Europe and i still compare the prices and convert every price to euro's in my head.

I'm still waiting for the baht to drop, i expected it to happen in december but it didn't. No big deal but now i 'll book my next holiday outside of Thailand, i refuse to pay more then 100 euro for a hotelroom here, so we go to Japan.

[laislica]

I have euro's and since it's low i don't care anymore....it's just low and i have to eat/live anyway.

But i still remember the good days when a euro was 50 baht, now it's 38.4 and that's a different story. For that price many products are cheaper in Europe and i still compare the prices and convert every price to euro's in my head.

I'm still waiting for the baht to drop, i expected it to happen in december but it didn't. No big deal but now i 'll book my next holiday outside of Thailand, i refuse to pay more then 100 euro for a hotelroom here, so we go to Japan.

I have Euros for our half year in Spain and Pounds to convert to Baht.

I keep my eye on the pound/Baht rate and buy a large chunk of Baht when I think that the rate is favourable.

After that I spend Baht when in Thailand but still use 50 as a conversion rate which helps me see how much more expensive Thailand is becoming year on year!

[Thian]

I have euro's and since it's low i don't care anymore....it's just low and i have to eat/live anyway.

But i still remember the good days when a euro was 50 baht, now it's 38.4 and that's a different story. For that price many products are cheaper in Europe and i still compare the prices and convert every price to euro's in my head.

I'm still waiting for the baht to drop, i expected it to happen in december but it didn't. No big deal but now i 'll book my next holiday outside of Thailand, i refuse to pay more then 100 euro for a hotelroom here, so we go to Japan.

I have Euros for our half year in Spain and Pounds to convert to Baht.

I keep my eye on the pound/Baht rate and buy a large chunk of Baht when I think that the rate is favourable.

After that I spend Baht when in Thailand but still use 50 as a conversion rate which helps me see how much more expensive Thailand is becoming year on year!

I've never been to Spain but i guess it's much cheaper there then in BKK. Food and wine quality is also a lot better i guess.

I really can't understand why Thailand won't depreciate the Baht since it goes bad with their economy. They must have their reasons for it i guess. Thai reasons that is.

[Berkshire]

When I first came to Thailand (from the US), I had to convert baht into US$ for pretty much all transactions just to get an idea of what something cost, i.e., its true value. Basically, 4,000 bt meant nothing to me, but $100 was....well, $100. Nowadays, after 10+ years, I'm starting to have a better feel of what "stuff" is supposed to cost and the value of the baht. It takes time.

[Gutenberg]

I'm still waiting for the baht to drop, i expected it to happen in december but it didn't.

The baht is tanking. Against the dollar. And as the EUR/USD is weak, also EUR/THB is weak.

If EUR/USD is going to 1:1,35 or higher, you will also see EUR/THB 1:45 again.

But well, to counter the high debts of the EU, the money printing machines running hot and a nice exchange rate in our favor will never happen again.

[Thian]

I'm still waiting for the baht to drop, i expected it to happen in december but it didn't.

The baht is tanking. Against the dollar. And as the EUR/USD is weak, also EUR/THB is weak.

If EUR/USD is going to 1:1,35 or higher, you will also see EUR/THB 1:45 again.

But well, to counter the high debts of the EU, the money printing machines running hot and a nice exchange rate in our favor will never happen again.

Just wait untill all the asylumseekers found jobs in Germany, then their economy will boost and push the euro up.

[usernameunknown]

How many years does it typically take for you to get that innate understanding of how much 100 baht is.... or how much 1000 is....?

[cooked]

Wrong question. I get ฿50 000 a month pension and have a certain amount in the bank. I don't really care about the exchange rate, I just need to know if I can afford things or not.

[thrilled]

For me anything that cost less than 100,000 baht I don't pay much attention to.If it cost over that amount then it starts to concern

Me.If I'm lazy I just go to the currency exchange app.It works for me.

[Misab]

How can the Thai Bahts keep its exchange rate against most of the world (US excepted) high up in the sky when the Thai export is falling drastically? And to whose interest is it, certainly not the Thai exporters, and if the export is hurt so are the Thai people, and it does not benefit the tourist industry either. So who does it benefit?

[morrobay]

How can the Thai Bahts keep its exchange rate against most of the world (US excepted) high up in the sky when the Thai export is falling drastically? And to whose interest is it, certainly not the Thai exporters, and if the export is hurt so are the Thai people, and it does not benefit the tourist industry either. So who does it benefit?

It benefits the very wealthy elite who for example buy property in London and who also suspiciously have the power to influence BOT and the exchange rate

Its ridiculous, today the $/baht dropped to 35.86. Not a surprise since when are the interests of the masses their concern ?

Ill let one of the economists here elaborate on how sustainable and what side effects this manipulation will have going forward.

Dont forget China's decreasing imports will also adversely affect Thailand's export market.

Edited January 27, 2016 by morrobay

[OJAS]

How can the Thai Bahts keep its exchange rate against most of the world (US excepted) high up in the sky when the Thai export is falling drastically? And to whose interest is it, certainly not the Thai exporters, and if the export is hurt so are the Thai people, and it does not benefit the tourist industry either. So who does it benefit?

Absolutely, if it were UK exports that were falling drastically, you can bet your bottom dollar that the GBP would be well on its way downwards to parity (and doubtless well beyond) against both the USD and EUR!

I also distinctly recall that, far from having any negative impact, the PAD airport occupations in 2008 caused the THB's value to soar against other currencies!

Edited January 27, 2016 by OJAS

[Sutty]

How can the Thai Bahts keep its exchange rate against most of the world (US excepted) high up in the sky when the Thai export is falling drastically? And to whose interest is it, certainly not the Thai exporters, and if the export is hurt so are the Thai people, and it does not benefit the tourist industry either. So who does it benefit?

It benefits the very wealthy elite who for example buy property in London and who also suspiciously have the power to influence BOT and the exchange rate

Its ridiculous, today the $/baht dropped to 35.86. Not a surprise since when are the interests of the masses their concern ?

Ill let one of the economists here elaborate on how sustainable and what side effects this manipulation will have going forward.

Dont forget China's decreasing imports will also adversely affect Thailand's export market.

Not only the very wealthy benifits me and long may it do so.

[slipperylobster]

I have no use to convert baht (mentally) to dollars. We know what prices should be for most common household items, utilities, rent, groceries, etc. We do our budget strictly in baht. Some months, we have more baht and sometimes we have less (exchange rate fluctuations). It really doesn't matter...as long as we save 33 percent of my income (stays in the USA). So we spend every last baht...regardless. Example...at a decent restaurant, a dinner for two would be a total of 400 to 500 baht (with two drinks). A night on the town is 1200, with plenty of bar hopping (drinks and snacks). I just put the appropriate amount in my pocket and forget dollars.

[chiang mai]

How can the Thai Bahts keep its exchange rate against most of the world (US excepted) high up in the sky when the Thai export is falling drastically? And to whose interest is it, certainly not the Thai exporters, and if the export is hurt so are the Thai people, and it does not benefit the tourist industry either. So who does it benefit?

It benefits the very wealthy elite who for example buy property in London and who also suspiciously have the power to influence BOT and the exchange rate

Its ridiculous, today the $/baht dropped to 35.86. Not a surprise since when are the interests of the masses their concern ?

Ill let one of the economists here elaborate on how sustainable and what side effects this manipulation will have going forward.

Dont forget China's decreasing imports will also adversely affect Thailand's export market.

No thread on THB would be complete without somebody dragging up a conspiracy theory involving the elite classes, do you have any idea what the factors are that affect the value of THB!

[Misab]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

[chiang mai]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

[Misab]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Okay, in Investopedia they have this answer:

There are countless geopolitical and economic announcements that affect the exchange rates between two countries, but a few of the most popular include: interest rate decisions, unemployment rates, inflation reports, gross domestic product numbers and manufacturing information.

Read more: How are international exchange rates set? | Investopedia http://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp#ixzz3ycjo8900

And of course when exports falls so should the Thai Bahts if it was logic

[chiang mai]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Okay, in Investopedia they have this answer:

There are countless geopolitical and economic announcements that affect the exchange rates between two countries, but a few of the most popular include: interest rate decisions, unemployment rates, inflation reports, gross domestic product numbers and manufacturing information.

Read more: How are international exchange rates set? | Investopedia http://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp#ixzz3ycjo8900

And of course when exports falls so should the Thai Bahts if it was logic

Investopedia says, "Floating rates are determined by the market forces of supply and demand."

GDP, levels of export, political instability, inflation rate, unemployment etc etc are all factors which may impact demand but honestly not to any great degree in Thailand because they are all fairly constant. Another factor to consider is that THB is a controlled currency, it is not freely convertible, overseas banks are limited by the amount of THB they can hold plus individuals cannot export/transfer unlimited amounts of THB outside Thailand, in that respect BOT controls the value of THB.

[TheCruncher]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Demand for a currency exists when that country has rising exports. Thailand exports are declining.

It also exists when foreign countries are investing in the country. Foreign investment declined by 78%

Another reason for demand may be because the currency is used as a trading currency in the world, Which country apart from Thailand trades in Thai baht?

Can't actually think about any reason why there would be demand for Thai Baht.

[chiang mai]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Demand for a currency exists when that country has rising exports. Thailand exports are declining.

It also exists when foreign countries are investing in the country. Foreign investment declined by 78%

Another reason for demand may be because the currency is used as a trading currency in the world, Which country apart from Thailand trades in Thai baht?

Can't actually think about any reason why there would be demand for Thai Baht.

I can think of almost 30 million other reasons, tourism!

And whilst it may be true that exports and inward investment are down on previous years, they both remain at a level that creates substantial demand for the Thai currency, "rising" is not a requirement that has to be met to create demand.

[lannarebirth]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Demand for a currency exists when that country has rising exports. Thailand exports are declining.

It also exists when foreign countries are investing in the country. Foreign investment declined by 78%

Another reason for demand may be because the currency is used as a trading currency in the world, Which country apart from Thailand trades in Thai baht?

Can't actually think about any reason why there would be demand for Thai Baht.

Hypothetical question. You were in the market for a house, stock, bond, whatever asset that interests you. You note that one of the key influences on demand for that asset have already fallen by 78%. Assuming you don't believe the asset will go to zero, do you think the asset is more likely to be near a top or a bottom?

Anyhow, here are some more factors to weigh if you care to:

http://www.tradingeconomics.com/thailand/indicators

[TheCruncher]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Demand for a currency exists when that country has rising exports. Thailand exports are declining.

It also exists when foreign countries are investing in the country. Foreign investment declined by 78%

Another reason for demand may be because the currency is used as a trading currency in the world, Which country apart from Thailand trades in Thai baht?

Can't actually think about any reason why there would be demand for Thai Baht.

Hypothetical question. You were in the market for a house, stock, bond, whatever asset that interests you. You note that one of the key influences on demand for that asset have already fallen by 78%. Assuming you don't believe the asset will go to zero, do you think the asset is more likely to be near a top or a bottom?

Anyhow, here are some more factors to weigh if you care to:

http://www.tradingeconomics.com/thailand/indicators

What has your list of indicators to do with Thai Baht demand?

The only thing that has decreased by 78% is foreign investment, and that is for sure no reason for others to increase investing in Thailand.

All other things but oil have only increased, and I really have to laugh with that negative inflation rate figure, because anyone who lives here know it's as reliable as their happiness poll results.

[lannarebirth]

If you know then please tell us what factors you think it is.

I only know what kept Greek drachma up until the balloon burst.

Easy, demand and that's all.

Demand for a currency exists when that country has rising exports. Thailand exports are declining.

It also exists when foreign countries are investing in the country. Foreign investment declined by 78%

Another reason for demand may be because the currency is used as a trading currency in the world, Which country apart from Thailand trades in Thai baht?

Can't actually think about any reason why there would be demand for Thai Baht.

Thailand, like many emerging market economies was for many years a beneficiary of the $USD carry trade. Basically a bet that the $USD would decline, whereby investors would borrow dollars, invest in other assets in foreign currencies, with the expectation that they would get a return on their investment, the currency they invested in would increase in value (in $USD terms) and that they would be repaying their original debt at lower value $USD levels. With the recent bottoming and increase in $USD levels all those investments need to be unwound (as many were leveraged), lest the investor take losses. I would say that has been the greatest factor in the fall of the baht and most other currencies as they relate to the $USD.

I don't know how far that unwinding has gone, but if carry trades are still on those investors are feeling some pain by now I would think. More likely it is largely unwound, but I'm only guessing. Anyhow, EM's usually start the rebound off when the world emerges from recessions or slow growth periods. I like to watch Balance of Trade.