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GBP reverting to the mean


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The heady days of 70 plus Bahts to the Pound are behind us.

 

The UK is in chaos, uncertainty and no sense of where it is going.

 

Where will the once proud and mighty GBP end up?  Looks like 40 with a possibility of an overshoot into the 30's.

 

Well done UK!! Gordo Brown said it all, "a weak currency is the sign of a weak government". The UK has had pathetic governments since Thatcher.

 

 

 

 

imggraph.png

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Hmm, I seriously wonder whether the GBP might revisit the lowest point of 27.3 THB stated in the OP's graph? In other words well below parity with both the EUR and USD as things currently stand.

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26 minutes ago, OJAS said:

Hmm, I seriously wonder whether the GBP might revisit the lowest point of 27.3 THB stated in the OP's graph? In other words well below parity with both the EUR and USD as things currently stand.

I was here at the time when GBP hit around Bt28. That was towards the end of 1984 and was at a time when the baht had a fixed rate to the USD of Bt23 (then rising to about 27 in early 1985). The GBP rate sounds bad but, in reality, prices in Thailand at that time were low enough that it wasn't such a big deal. Now though........!!

 

The USD/GBP rate dropped to about 1.05 in early 1985 so a similar rate just now (a possibility?) would give a GBP/THB rate of about 36. Bad, yes, but not a disaster (except for some on a GBP fixed pension).

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23 hours ago, dabhand said:

I was here at the time when GBP hit around Bt28. That was towards the end of 1984 and was at a time when the baht had a fixed rate to the USD of Bt23 (then rising to about 27 in early 1985). The GBP rate sounds bad but, in reality, prices in Thailand at that time were low enough that it wasn't such a big deal. Now though........!!

 

The USD/GBP rate dropped to about 1.05 in early 1985 so a similar rate just now (a possibility?) would give a GBP/THB rate of about 36. Bad, yes, but not a disaster (except for some on a GBP fixed pension).

It might prove a disaster for those who are currently teetering on the brink in complying with the financial requirements for annual extensions of stay on the basis of total UK-generated income (in addition to the fixed State Pension) if any further reductions in the exchange rate were to render them unable to meet the prescribed THB minima, thus meaning that they would have no choice other than to up sticks and move back on the UK.

Edited by OJAS
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