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.

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

It's almost fun to look at the numbers on debt and to compare them against a western economy such as the UK, in fact, if you look across the whole range of indicators in that link there's not a lot of bad news anywhere, by comparison.

[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

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.

Thailand does not have a floating currency, it’s clinging to the US $

The US has an economy that rumbles their export is increasing every month and the dollar is strong. It is not the case with Thailand's economics nevertheless Thai Bahts follow US $ up.

[chiang mai]

That's not my quote, I didn't write that, remove it!

In fact, Thailand operates a managed float system and does not "cling" to USD other than to smooth out exchange rate volatility.

Edited January 30, 2016 by chiang mai

[derator01]

A post with messed up quotes has been removed from view.

[lannarebirth]

l.

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.

Thailand does not have a floating currency, it’s clinging to the US $

The US has an economy that rumbles their export is increasing every month and the dollar is strong. It is not the case with Thailand's economics nevertheless Thai Bahts follow US $ up.

If by "clinging to the $USD" you mean "it goes wherever the hell it wants to with respect to the $USD", then I'd have to agree with you.

[Henryford]

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.

I can think of 1 trillion reasons. Thailand doesn't print Mickey Mouse money like the western countries. The Pound took a hammering again despite our "booming economy".