Further baht gains may hurt recovery, Bank of Thailand says

[webfact]

Further baht gains may hurt recovery, Bank of Thailand says

 

BANGKOK, Aug 22 — Thailand’s central bank is concerned further appreciation of the baht will hurt exporters and damage the nation’s economic recovery.

 

The currency advanced to the strongest level in 13 months last week as overseas investors boosted their holdings of the country’s stocks and bonds this year. Exports have contracted in 16 of the past 18 months, prompting Prime Minister Prayuth Chan-ocha to increase spending to counter the slump. The currency has also rallied as investor confidence was bolstered by the peaceful approval of a new constitution in an Aug. 7 referendum.

 

“To date, the appreciation of the baht might have dampened the cash flows of Thai exporters,” Bank of Thailand Assistant Governor of Financial Markets Chantavarn Sucharitakul, said in an e-mail interview. “Further strength in the baht might also derail the recovery of the Thai economy – a concern which the Bank of Thailand has to monitor closely.”

 

Full story: http://www.themalaymailonline.com/money/article/further-baht-gains-may-hurt-recovery-bank-of-thailand-says

 

-- malaymail online 2016-08-22

[Hawk]

" Thailand’s central bank is concerned further appreciation of the baht will hurt exporters and damage the nation’s economic recovery."

 

So they just sit there and watch it happen because the PM thinks strong is best, as imports are cheaper.

[smedly]

time to print some money, I already know of a few people who are giving Thailand a miss because of the exchange rate, the only saving factor that I can see is the situation in Europe were tourists are being targeted

[Brer Fox]

Thailand's baht is manipulated for no other reason than to help the top end of town; especially those big boys who have their money on deposit in foreign countries where they can play the currency markets. 

A stronger baht will harm the economy and adversely impact on exports and make them more expensive and unattractive for overseas buyers. Imports on the other hand will be cheaper and it will therefore be harder for local manufacturers to compete against imported products in the domestic market.

The PM seems to have everything well under control for the benefit of the VIP members of his Fan Club.

[SABloke]

22 minutes ago, Brer Fox said:

Thailand's baht is manipulated for no other reason than to help the top end of town; especially those big boys who have their money on deposit in foreign countries where they can play the currency markets. 

A stronger baht will harm the economy and adversely impact on exports and make them more expensive and unattractive for overseas buyers. Imports on the other hand will be cheaper and it will therefore be harder for local manufacturers to compete against imported products in the domestic market.

The PM seems to have everything well under control for the benefit of the VIP members of his Fan Club.

 

So now Prayuth is purposefully meddling with the economy.  Seems he's starting to get Bogeyman status like Thaksin. Don't let the fact that the Baht is weaker than under the previous government get in the way of your conspiracy theory though 

[NCC1701A]

How did George Soros attack Thai baht in 1997 (Asian crisis)?

https://www.quora.com/How-did-George-Soros-attack-Thai-baht-in-1997-Asian-crisis

 

they will have to go about it differently this time.

 

 

 

 

[Srikcir]

3 hours ago, webfact said:

Thailand’s central bank is concerned further appreciation of the baht will hurt exporters and damage the nation’s economic recovery.

I just don't understand how BOT is so concerned.

Just last week BOT indicated that the Thai economy "has fully recovered." As for the appreciation of the Thai baht over the past two-three days, it was due to the "positive economic indicators of the second quarter as well as the success of the August 7 constitutional referendum, lending a boost to capital inflow."

Maybe BOT's rosy statement of the economy hasn't been so honest.

[BuaBS]

So we just got warned of an interest rate cut coming soon ....

 

[Witblitz]

THB strengthening, GBP dropping...the UK State pensioners living in the Thailand must be cr*pping  themselves 

[Ronuk]

It's a correction of Sterling. The pound has long been over valued. 45-45.50 will be its value to the Baht until another cut in UK Interest rates or a rise in US rates.

[Just1Voice]

I have to chuckle when I think back to just a couple of months ago, all the financial "big boys" & banks were saying the baht would hit 37 to the dollar by the end of the year.  

[elgordo38]

1 hour ago, Srikcir said:

I just don't understand how BOT is so concerned.

Just last week BOT indicated that the Thai economy "has fully recovered." As for the appreciation of the Thai baht over the past two-three days, it was due to the "positive economic indicators of the second quarter as well as the success of the August 7 constitutional referendum, lending a boost to capital inflow."

Maybe BOT's rosy statement of the economy hasn't been so honest.

High consumption? Did Helicopter money arrive here? This guy comes closer to the truth than the other baloney spouted by high level executives. I read the business section in the local newspaper and it just reeks with positive expectations. Why not cut the bank rate? we are getting almost nothing on our savings as it is. Go negative like every other country in the world sock it to savers like they are. After decades of listening to government BS during my working years look what I am left with. An upside down world. 

[Kabula]

4 hours ago, Brer Fox said:

Thailand's baht is manipulated for no other reason than to help the top end of town; especially those big boys who have their money on deposit in foreign countries where they can play the currency markets. 

A stronger baht will harm the economy and adversely impact on exports and make them more expensive and unattractive for overseas buyers. Imports on the other hand will be cheaper and it will therefore be harder for local manufacturers to compete against imported products in the domestic market.

The PM seems to have everything well under control for the benefit of the VIP members of his Fan Club.

 

4 hours ago, Brer Fox said:

Thailand's baht is manipulated for no other reason than to help the top end of town; especially those big boys who have their money on deposit in foreign countries where they can play the currency markets. 

A stronger baht will harm the economy and adversely impact on exports and make them more expensive and unattractive for overseas buyers. Imports on the other hand will be cheaper and it will therefore be harder for local manufacturers to compete against imported products in the domestic market.

The PM seems to have everything well under control for the benefit of the VIP members of his Fan Club.

Your written content is liable against the PM!

 

To make these allegations for the world to see is very foolish and dangerous.

 

Political prisoners are sitting in prisons around the world without even being sentenced for similar political allegations. Some for life!

 

New Computer Crimes laws are in place worldwide to identify similar content and make arrests.

 

Good luck.

 

For your information Central Banks regulate exchange rates not PM's.

[lungbing]

2 hours ago, Witblitz said:

THB strengthening, GBP dropping...the UK State pensioners living in the Thailand must be cr*pping  themselves 

 

 

Thank you for your concern,  and so eloquently expressed.

[Prbkk]

3 hours ago, NCC1701A said:

How did George Soros attack Thai baht in 1997 (Asian crisis)?

https://www.quora.com/How-did-George-Soros-attack-Thai-baht-in-1997-Asian-crisis

 

they will have to go about it differently this time.

 

 

 

 

You mean the IMF crisis: because significant numbers of people still call it that, including some in influential positions ( ie, denial 20 years after the fact).

[Winniedapu]

1 hour ago, Kabula said:

 

Your written content is liable against the PM!

 

To make these allegations for the world to see is very foolish and dangerous.

 

Political prisoners are sitting in prisons around the world without even being sentenced for similar political allegations. Some for life!

 

New Computer Crimes laws are in place worldwide to identify similar content and make arrests.

 

Good luck.

 

For your information Central Banks regulate exchange rates not PM's.

 

 

I think you'll find the word is 'libel'. 'Liable' is something different, though he unquestionably should be held liable.

 

Sorry to rain on your parade but how likely are you to understand it if you can't even spell it?

 

Another one of the 'It happens in other places so it must be OK in Thailand' brigade.

 

Winnie

[Brer Fox]

7 hours ago, SABloke said:

 

So now Prayuth is purposefully meddling with the economy.  Seems he's starting to get Bogeyman status like Thaksin. Don't let the fact that the Baht is weaker than under the previous government get in the way of your conspiracy theory though 

The PM  meddles with everything else so why wouldn't he meddle with the economy and the value of the baht to help out his silvertail mates who keep him in power.

Have you no worthwhile comments to contribute about the economy of Thailand or do you prefer to just sit and snipe at others from the sidelines with you childish "emotion" faces.? For me the people who resort to those stupid faces emphasises their inadequacies when it comes to verbalising their own opinion. Lift your game.

 

Edited August 22, 2016 by Brer Fox

[Brer Fox]

2 hours ago, Kabula said:

 

Your written content is liable against the PM!

 

To make these allegations for the world to see is very foolish and dangerous.

 

Political prisoners are sitting in prisons around the world without even being sentenced for similar political allegations. Some for life!

 

New Computer Crimes laws are in place worldwide to identify similar content and make arrests.

 

Good luck.

 

For your information Central Banks regulate exchange rates not PM's.

You are a funny man. The man who controls everything in Thailand is the PM. The UN knows that.

The Central Bank is within his control.

You speak as if you one of his toadies and high up on his VIP membership list.

[anotheruser]

Nice to see that the jet ski operators were instrumental in keeping people out of the water even if it was at the expense of their own livelihood. This restores faith in humanity. 

[chiang mai]

6 hours ago, Brer Fox said:

You are a funny man. The man who controls everything in Thailand is the PM. The UN knows that.

The Central Bank is within his control.

You speak as if you one of his toadies and high up on his VIP membership list.

 

BOT is well outside of the PM's direct control, unless you're a conspiracy theorist that is.

[metisdead]

An inflammatory post has been removed. 

[alofthailand]

13 hours ago, Witblitz said:

THB strengthening, GBP dropping...the UK State pensioners living in the Thailand must be cr*pping  themselves 

You could never live here on just a state pension- we live off our property rent back in the  UK - the state pension is barely beer money at 120 quid a month.

[SABloke]

9 hours ago, Brer Fox said:

The PM  meddles with everything else so why wouldn't he meddle with the economy and the value of the baht to help out his silvertail mates who keep him in power.

Have you no worthwhile comments to contribute about the economy of Thailand or do you prefer to just sit and snipe at others from the sidelines with you childish "emotion" faces.? For me the people who resort to those stupid faces emphasises their inadequacies when it comes to verbalising their own opinion. Lift your game.

 

 

This post seems like a "snipe" and I don' t see how it adds to the discussion of the Thai economy any more than my post.

 

"Childish emotion faces"...coming from a person with a fox as an avatar to match their name and liked by a who uses Pooh as a picture.   

[smedly]

50 minutes ago, alofthailand said:

You could never live here on just a state pension- we live off our property rent back in the  UK - the state pension is barely beer money at 120 quid a month.

don't you mean per week lol

 

[daveAustin]

It's a correction of Sterling. The pound has long been over valued. 45-45.50 will be its value to the Baht until another cut in UK Interest rates or a rise in US rates.

The baht is something like 20% over its station.

[lannarebirth]

12 minutes ago, daveAustin said:

The baht is something like 20% over its station.

 

The Baht doesn't trade against Sterling. GBP:THB rates are an interpolation of USD:GBP and USD:THB rates. That said I think the THB is pretty close to fair value against the $USD, maybe even 32-33. Ultimately I expect the THB to go to 25 vs the USD and then 20, though I may not live to see it. Something to think about for those "buy vs. rent" threads. 

[Ricardo]

Didn't the BoT recently decide not to cut their interest-rate ?

 

And now the currency strengthens  ...  and they're starting to worry about its effects  ...  a light-bulb illuminates, just about now, in their conference-room !

[Srikcir]

3 hours ago, chiang mai said:

 

BOT is well outside of the PM's direct control, unless you're a conspiracy theorist that is.

Of course under Article 44 all Thais in government positions are under Prayut's direct control as Chief of NCPO. No conspiracy theory is required.

With regard to the current BOT Governor, he was SELECTED by PM Prayut's Minister of Finance and APPROVED for nomination by Prayut's Cabinet. Needless to say, Prayut CONTROLS his Cabinet.

Prior to Veerathai's appointment to BOT, he was (and may still be) a member of the Junta's Superboard HEADED by Prayut that supervises Thailand's State Enterprises.

Veerathai is hardly "well outside" Prayut's direct control.

[chiang mai]

1 minute ago, Srikcir said:

Of course under Article 44 all Thais in government positions are under Prayut's direct control as Chief of NCPO. No conspiracy theory is required.

With regard to the current BOT Governor, he was SELECTED by PM Prayut's Minister of Finance and APPROVED for nomination by Prayut's Cabinet. Needless to say, Prayut CONTROLS his Cabinet.

Prior to Veerathai's appointment to BOT, he was (and may still be) a member of the Junta's Superboard HEADED by Prayut that supervises Thailand's State Enterprises.

Veerathai is hardly "well outside" Prayut's direct control.

 

Except the BOT's numbers are produced weekly and monthly for the world to see and any interference by the bank, overtly or otherwise would show up in those numbers - they haven't and I believe strongly that they wont, simply because of history and the need to be seen to keep independence of the bank, any alternative would cause investor confidence to evaporate.

 

 

[madmitch]

19 hours ago, Brer Fox said:

Thailand's baht is manipulated for no other reason than to help the top end of town; especially those big boys who have their money on deposit in foreign countries where they can play the currency markets. 

A stronger baht will harm the economy and adversely impact on exports and make them more expensive and unattractive for overseas buyers. Imports on the other hand will be cheaper and it will therefore be harder for local manufacturers to compete against imported products in the domestic market.

The PM seems to have everything well under control for the benefit of the VIP members of his Fan Club.

Totally agree, but isn't it interesting that as consumers, we never see the baht price of imported goods go down regardless of the strength of the baht? It's just a bonus for those running the import companies.