Thailand to Trump: We Don't Manipulate Baht for Trade Gains

[webfact]

Thailand to Trump: We Don't Manipulate Baht for Trade Gains

by Sunil Jagtiani, Melissa Cheok, and Clarissa Batino

 

- Central bank head responds to U.S. probe of trade deficit

- Veerathai also says space to cut interest rate is ‘limited’

 

BANGKOK: -- Bank of Thailand Governor Veerathai Santiprabhob said there’s no evidence authorities are manipulating the currency to give exports an unfair advantage, responding to the U.S.’s decision to investigate the Southeast Asian nation for possible trade abuse.

 

While the central bank intervenes in the foreign-exchange market at times, the baht has strengthened against the dollar this year, proof the monetary authority isn’t trying to keep the currency weak, Veerathai said in an interview with Bloomberg Television’s Haslinda Amin in Cebu in the Philippines.

 

“I don’t think anyone has evidence that Thailand has manipulated the currency to gain an unfair competitive advantage,” the governor, 47, said on Thursday on the sidelines of a conference of regional finance ministers and central bank chiefs. “Thailand has not adopted any exchange-rate policies to gain an unfair competitive advantage in trade.”

 

Full story: https://www.bloomberg.com/politics/articles/2017-04-06/bank-of-thailand-head-denies-baht-manipulation-in-trump-rebuttal

 

-- Bloomberg 2017-04-07

[petermik]

Nothing underhand ever happens here

[Reigntax]

2 minutes ago, petermik said:

Nothing underhand ever happens here

 

Yes, because money is never the most important factor in making any decision. Commissions and backhanders lead the way.

[ramrod711]

32 minutes ago, webfact said:

the baht has strengthened against the dollar this year, proof the monetary authority isn’t trying to keep the currency weak,

I am actually in agreement with him on this, the Canadian dollar has fallen massively against the Baht in the last couple of years.

[tukkytuktuk]

Veerathai don't get upset this is Donald Trump. The biggest idiot President to get elected since George W Bush. No one listens to his ramblings. Chill, don't take the clown seriously.

[55Jay]

I don't claim to know anything, but the headline says we don't do that, while the article/BOT basically says they do.  The reason they do is to keep the Baht in a "happy zone" and a significant motivation for that is.......... TRADE! 

 

Right?  Again, I don't know anything, it's just how I read the (linked) article vs. the headline.

 

Edited April 7, 2017 by 55Jay

[wirat69]

1 hour ago, webfact said:

Bank of Thailand Governor Veerathai Santiprabhob said there’s no evidence authorities are manipulating the currency to give exports an unfair advantage,

No evidence... but also no denial.... they must be good to cover up any evidential data!!

[Jonmarleesco]

Did the US state Thailand was manipulating the THB down, or simply that it was manipulating the currency? Because it's almost a certainty that the THB is ever being manipulated.

[maoro2013]

Keep telling currency weak?

 

The rich don't want that surely. 

[Jessi]

2 hours ago, tukkytuktuk said:

Veerathai don't get upset this is Donald Trump. The biggest idiot President to get elected since George W Bush. No one listens to his ramblings. Chill, don't take the clown seriously.

Don't hold back please tell us what you really think of Trump?

[Deez]

2 hours ago, tukkytuktuk said:

Veerathai don't get upset this is Donald Trump. The biggest idiot President to get elected since George W Bush. No one listens to his ramblings. Chill, don't take the clown seriously.

Is that you Obama?

[Chris Lawrence]

Another Mr T telling the Bangkok elite what they should and shouldn't being doing. If there is a quid to be made the Thais are straight onto it.

[worgeordie]

You feel they are just doing the opposite ,anything to keep the Baht strong,

for some unknown reason, cut interest rates,they are already below inflation, 

never mind what the Government says.

regards worgeordie

[jenifer d]

1 hour ago, Jessi said:

Don't hold back please tell us what you really think of Trump?

i will: der  Furor Dumold Jerk Drumpf is a charlatan and a conman, and a functionally illiterate manchild scam artist with dictatorial dreams;

this Mango Mussolini with a 2-digit IQ has a massive inferiority complex due 

to Mommy abandonment issues as well as jokingly small phallus

-i have been with literally hundreds of men of all races, sizes, and creeds- i was a call girl for a half decade in LA- no man with hands that small EVER has even a normal-sized "package"-

 

and America, as well as the whole world, will have to suffer the escalating, horrifying consequences  due to his massive insecurity stemming from that very fact...

 

i stand on record as having made statements of this fact repeated times publicly on social media, even in tweets directed to his account, ever since he first announced his candidacy-

and now, he has openly assisted Al Quaeda against a sovereign government

[Jessi]

7 minutes ago, jenifer d said:

i will: der  Furor Dumold Jerk Drumpf is a charlatan and a conman, and a functionally illiterate manchild scam artist with dictatorial dreams;

this Mango Mussolini with a 2-digit IQ has a massive inferiority complex due 

to Mommy abandonment issues as well as jokingly small phallus

-i have been with literally hundreds of men of all races, sizes, and creeds- i was a call girl for a half decade in LA- no man with hands that small EVER has even a normal-sized "package"-

 

and America, as well as the whole world, will have to suffer the escalating, horrifying consequences  due to his massive insecurity stemming from that very fact...

 

i stand on record as having made statements of this fact repeated times publicly on social media, even in tweets directed to his account, ever since he first announced his candidacy-

and now, he has openly assisted Al Quaeda against a sovereign government

Feel better now????

[matta330]

<Cough, cough> Kawaii kee <cough, cough>

[KenKadz]

I know this is true every time I go to the ATM and watch the exchange rate bouncing like a ping pong ball.

[jabis]

The US ain't eyeing the FX rate, but Trade Deficit / Surplus, and it's not just SEA-region, the list was a global one, including many EU countries - the THB FX rate is being propped by BoT using foreign reserves, keeping it artificially as high as possible for the importers' advantage. This is totally different subject though than comparing trade exchange..

[Bluespunk]

Hilarious ? 

[Tony125]

9 hours ago, tukkytuktuk said:

Veerathai don't get upset this is Donald Trump. The biggest idiot President to get elected since George W Bush. No one listens to his ramblings. Chill, don't take the clown seriously.

I think Assad might listen to his ramblings unless he wants his Presidential Palace to dissapear in a puff of smoke caused by a cruise missle

[Ulic]

Trump is a bit of a dummy when it comes to his tired same old currency manipulation whinge.

If anything Thai Visa readers think the Baht is being manipulated up and it is far too strong.

Where I believe Trump has a legitimate gripe is fare trading practices and foreign company

access to the Thai market. Everyone wants tariff free access to the US market but nobody

gets that quid pro quo here in Thailand. Local companies are protected by import tariffs. The

Thai government of course encourages local investment, but only with a 51% Thai partner who often

provides little more than connections to untangle local bureaucracy and corruption. As with China,

why should Thailand/China and others with huge US trade imbalances get preferred access to the

USA/Europe/Canada, Australia etc....and those countries companies are blocked from entering/doing

business here/Asia.  

 

[jabis]

1 minute ago, Ulic said:

Trump is a bit of a dummy when it comes to his tired same old currency manipulation whinge.

If anything Thai Visa readers think the Baht is being manipulated up and it is far too strong.

Where I believe Trump has a legitimate gripe is fare trading practices and foreign company

access to the Thai market. Everyone wants tariff free access to the US market but nobody

gets that quid pro quo here in Thailand. Local companies are protected by import tariffs. The

Thai government of course encourages local investment, but only with a 51% Thai partner who often

provides little more than connections to untangle local bureaucracy and corruption. As with China,

why should Thailand/China and others with huge US trade imbalances get preferred access to the

USA/Europe/Canada, Australia etc....and those countries companies are blocked from entering/doing

business here/Asia.  

 

You seem to mix the same issues I noted in previous post. Foreign exchange rates vs Trade exchange (surplus or deficit). These two don't have anything in common, except the end price to consumers. but it has nothing to do with bilateral trading agreements whatsoever. For the latter, the fact remains that baht is being propped by the government buying off their bonds with foreign reserves, which has nothing to do with trade deficits (less exports to US) and now for example a decision that the government is replacing US purchased armaments with chinese counterparts. 

[daveAustin]

9 hours ago, jabis said:

the THB FX rate is being propped by BoT using foreign reserves, keeping it artificially as high as possible for the importers' advantage.

Plus having 'strong' money makes them look cool. 

[dazzz]

15 hours ago, Jessi said:

Don't hold back please tell us what you really think of Trump?

jessi don't get upset this is tukkytuktuk The biggest idiot on thai visa . No one listens to his ramblings. Chill, don't take the clown seriously even if he just insulted millions of americans

[Srikcir]

20 hours ago, webfact said:

there’s no evidence authorities are manipulating the currency to give exports an unfair advantage, responding to the U.S.’s decision to investigate the Southeast Asian nation for possible trade abuse.

BOT may try to narrowly define "trade abuse" as solely one of currency manipulation but the US will likely see a broader complexity of trade issues, ie., product dumping, government subsidized cost of manufacturing, unfair manufacturing practices (use of human trafficking & child labor), intellectual property violations, IP theft, etc.

 

The bottom line for businessman/POTUS Trump is whether a US trade deficit with a country exists because of unfair or outdated trade practices or from legitimate open market competition. For example, favorable US tariff relief for imports of Thai seafood that contribute to a US trade deficit with Thailand might be reduced or eliminated to balance trade. There is also a flip side of trade imbalance - laws by a foreign trade partner that diminish or block fair competition by US businesses within the foreign country. Can the Thai government say it is a fair trade partner with the US?

[Srikcir]

19 hours ago, tukkytuktuk said:

don't take the clown seriously.

This "clown" is commander in chief of the most powerful military in the world, president of the (now) second largest economy in the world and leader of 350 million people - albeit he now has 59 less cruise missiles in the navy inventory. It would be a mistake not to take him seriously.

[55Jay]

11 hours ago, jabis said:

The US ain't eyeing the FX rate, but Trade Deficit / Surplus, and it's not just SEA-region, the list was a global one, including many EU countries - the THB FX rate is being propped by BoT using foreign reserves, keeping it artificially as high as possible for the importers' advantage. This is totally different subject though than comparing trade exchange..

Agreed, however the point, and the OP, is about Trump's allegation that Thailand (and others) is manipulating the Baht..... to gain unfair trade advantage.

 

At least the way I read the article, Thailand (BoT) denies the allegation then goes on to say they have and do intervene to control the Baht, explain why, but fall short of saying one of the "negative consequences" of a strong Baht they refer to is it screws up the Thai export sector.  Trade.  I may be saying that wrong, strong/weak currency.  Up is down, down is up in this thing.  LOL.

 

Nuanced semantics.  Thailand manipulates the Baht to preserve stability and predictability in trade - exports in particular - which is a significant part of Thailand's economy.  The benefactors they care about, of course, is here on the Thai end of the transaction, but of course the Dollar buying side benefits from stability and predictability.

 

Trump's accusatory language and Shoot 'em in the Face First policy, causes the Thais do deny and save face, and play word games.  Trump might be right, but his bedside manner sucks.

 

Trump's long-standing campaign bluster about China manipulating the Yaun seems to be stalling out using the existing Obama Administration metrics. They'll have to change the benchmarks.  And they probably will. 

http://www.reuters.com/article/us-usa-china-trade-idUSKBN1772Z4

 

Edited April 8, 2017 by 55Jay

[Privateer]

On 07/04/2017 at 5:44 PM, Tony125 said:

I think Assad might listen to his ramblings unless he wants his Presidential Palace to dissapear in a puff of smoke caused by a cruise missle

I should think Assad is just a little worried!  He used to have the craziest president on his side.

[Privateer]

On 08/04/2017 at 3:51 AM, Srikcir said:

This "clown" is commander in chief of the most powerful military in the world, president of the (now) second largest economy in the world and leader of 350 million people - albeit he now has 59 less cruise missiles in the navy inventory. It would be a mistake not to take him seriously.

Have you built your bunker yet?

[CantSpell]

“I don’t think anyone has evidence that Thailand has manipulated the currency to gain an unfair competitive advantage,"

 

He didn't say they do not do it...

 

Just that nobody can prove they are doing it... Give him a lollipop, he is doing a great job