BOT to keep baht from fluctuating too much

[webfact]

BOT to keep baht from fluctuating too much

BANGKOK, 31 May 2016 (NNT) - Bank of Thailand (BOT) Governor Wirathai Santipraphop said the baht has depreciated since the US dollar sharply rose under the United States Federal Reserve's policy.

Although the weakened baht remains in line with the fluctuations of regional currencies, the BOT will see to it that the baht will not fluctuate too much to avoid adverse impacts on the national economy, he said.

The BOT governor added that the number of banknotes has decreased because not so many have been newly printed and more people have turned to E-payment.

-- NNT 2016-05-31

[kotsak]

"..the BOT will see to it that the baht will not fluctuate too much to avoid adverse impacts on the national economy hi-so, he said"

Edited May 30, 2016 by kotsak

[Jeffrey346]

So they are basically going to peg the baht to the UD $. Many countries do this...

[Berty100]

So they are basically going to peg the baht to the UD $. Many countries do this...

Worked pretty well in 1997. Not?

[Krataiboy]

The way exports are going, a weaker baht would help. It would be OK pegging the baht to the dollar if the dollar was pegged to something other than the whims of the Fed. Never mind. Maybe China, which has been importing gold on a staggering scale, will bring back the gold standard which tricky Dicky foolishly jettisoned.

[taony]

Be prepared for 60/US$.

[gandalf12]

So they are basically going to peg the baht to the UD $. Many countries do this...

Worked pretty well in 1997. Not?

1997 was a truly vintage year. I remember it well

[Kabula]

The entire current world banking challenges should be very concerning to everyone.

If you are relying on the combination financial option for a retirement extension, you need to keep a close eye on exchange rates 4 months in advance.

If the rates are working against you, better, if you can to wire in the 800,000 THB + into a separate savings Thai bank savings account and let it sit until tha application is approved.

[colinneil]

Yes bring back 97 very good year late 97 90 baht to the pound.

[lavender19]

I thought they been propping up the baht for a long time already

[namatjira]

They really need a lower baht...

[elgordo38]

The way exports are going, a weaker baht would help. It would be OK pegging the baht to the dollar if the dollar was pegged to something other than the whims of the Fed. Never mind. Maybe China, which has been importing gold on a staggering scale, will bring back the gold standard which tricky Dicky foolishly jettisoned.

Yes Fed speak is walking up and down on all markets foreign and domestic including gold. Asian markets now seem to just play follow the leader in America instead of trading on fundamentals. Yes the American tail seems to be wagging the dog

[bangkapi]

Why is there no real price discovery in anything these days?

The criminal federal reserve and other central banks need to go.

We wouldn't have these fluctuations if the currency were sound.

[Srikcir]

The way exports are going, a weaker baht would help. It would be OK pegging the baht to the dollar if the dollar was pegged to something other than the whims of the Fed. Never mind. Maybe China, which has been importing gold on a staggering scale, will bring back the gold standard which tricky Dicky foolishly jettisoned.

Yes Fed speak is walking up and down on all markets foreign and domestic including gold. Asian markets now seem to just play follow the leader in America instead of trading on fundamentals. Yes the American tail seems to be wagging the dog

And Prayut's treasured currencies the yuan and ruble have gone the way of dog poop.

[gandalf12]

I thought they been propping up the baht for a long time already

They have been. Maybe they have reached the end were they can no longer support it but make the statement as if it is their decision to let it go

[sanukjim]

The way exports are going, a weaker baht would help. It would be OK pegging the baht to the dollar if the dollar was pegged to something other than the whims of the Fed. Never mind. Maybe China, which has been importing gold on a staggering scale, will bring back the gold standard which tricky Dicky foolishly jettisoned.

What The Nixon led White house did was get the Congress to approve the buying ,keeping ,and selling of gold by all US citizens .Before that only collectors could have gold in The US.It was congress acting on a White House suggestion and public demand.US laws are not defined by the whims of the President but by congress.

[Balance]

What BOT said is that they were NOT going to let the baht float, but use their foreign reserves to keep the baht from slipping too much. It is unlikely that they will let it get over 36 for very long.

[elgordo38]

What BOT said is that they were NOT going to let the baht float, but use their foreign reserves to keep the baht from slipping too much. It is unlikely that they will let it get over 36 for very long.

In other words once they have chewed through their reserves the baht will go THUD!! Could be 1997 all over again. Once countries backstop their currency the cupboard gets bare awfully fast. The obvious answer would to let it float and find its level. Good for tourism and manufacturing which is showing slippage as well.

[Winniedapu]

What BOT said is that they were NOT going to let the baht float, but use their foreign reserves to keep the baht from slipping too much. It is unlikely that they will let it get over 36 for very long.

In other words once they have chewed through their reserves the baht will go THUD!! Could be 1997 all over again. Once countries backstop their currency the cupboard gets bare awfully fast. The obvious answer would to let it float and find its level. Good for tourism and manufacturing which is showing slippage as well.

I remember someone else saying that a while back - got laughed out of court by the merchant banker wallies. They said the BOT doesn't have enough foreign reserves to manipulate the baht for very long - much as you are saying now and was said then.

I guess the merchant bankers were really city bankers then...

There's a surprise...

W

[Balance]

What BOT said is that they were NOT going to let the baht float, but use their foreign reserves to keep the baht from slipping too much. It is unlikely that they will let it get over 36 for very long.

In other words once they have chewed through their reserves the baht will go THUD!! Could be 1997 all over again. Once countries backstop their currency the cupboard gets bare awfully fast. The obvious answer would to let it float and find its level. Good for tourism and manufacturing which is showing slippage as well.

I remember someone else saying that a while back - got laughed out of court by the merchant banker wallies. They said the BOT doesn't have enough foreign reserves to manipulate the baht for very long - much as you are saying now and was said then.

I guess the merchant bankers were really city bankers then...

There's a surprise...

W

I am sure there are folks on TV that know a lot more about currency stuff, but that said it seems to me that with exports in the tank tourism is the only steady source of hard currency, and that is circling the toilet bowl as well. It follows that with nothing to buy baht with it will have to float and we may see '97 like rates again. But, remember that the '97 crash was led by the bubble bursting in the real estate markets leaving the 20 story concrete ghosts hovering over BKK. Time will tell.

[Winniedapu]

What BOT said is that they were NOT going to let the baht float, but use their foreign reserves to keep the baht from slipping too much. It is unlikely that they will let it get over 36 for very long.

In other words once they have chewed through their reserves the baht will go THUD!! Could be 1997 all over again. Once countries backstop their currency the cupboard gets bare awfully fast. The obvious answer would to let it float and find its level. Good for tourism and manufacturing which is showing slippage as well.

I remember someone else saying that a while back - got laughed out of court by the merchant banker wallies. They said the BOT doesn't have enough foreign reserves to manipulate the baht for very long - much as you are saying now and was said then.

I guess the merchant bankers were really city bankers then...

There's a surprise...

W

I am sure there are folks on TV that know a lot more about currency stuff, but that said it seems to me that with exports in the tank tourism is the only steady source of hard currency, and that is circling the toilet bowl as well. It follows that with nothing to buy baht with it will have to float and we may see '97 like rates again. But, remember that the '97 crash was led by the bubble bursting in the real estate markets leaving the 20 story concrete ghosts hovering over BKK. Time will tell.

The so-called 'Tiger' economies hated Thailand then and still hate Thailand now for triggering the 1997 crisis.

And Thailand still thinks it has friends... it might be true, but when the crunch does come, we'll all see how many friends Thailand has.

Many Thai business people are still embarrassed about that crash, but the average Thai doesn't even know about it and is still of the delusional view that Thailand leads the world, or at least that someone in Thailand does. Wet dreams can be wonderful I suppose...

Winnie

Edited June 1, 2016 by Winniedapu