Qatar row helping boost baht, says central bank governor

[webfact]

Qatar row helping boost baht, says central bank governor
By The Nation

 

BANGKOK: -- A sharp appreciation in the baht in Wednesday morning’s trading – to Bt33.90 per dollar – has sparked concern over a potential impact on Thai exports.

 

Thais held back on investments in Qatar amid volatility in the Middle East after Saudi Arabia and other Persian Gulf countries cut off diplomatic relations with their neighbour. Thai money stayed home instead, driving up the baht’s value.

 

Central bank governor Veerathai Santiprabhob noted on Wednesday that Thai investors usually have around Bt200 billion worth of assets based in Qatar, but have withdrawn much of it.

 

Foreign investors were also more heavily subscribing to Thai bonds, demonstrating greater confidence in the Thai economy’s ability to recover, he said. 

 

At the same time, there is doubt over the United States’ economic outlook with President Donald Trump under fire for sacking the chief of the Federal Bureau of Investigation.

 

The combination of factors has triggered large capital inflow into Thailand and driven up the baht’s value, Veerathai said. He advised exporters to hedge against high volatility in currencies.

 

Source: http://www.nationmultimedia.com/news/business/EconomyAndTourism/30318041

 

-- © Copyright The Nation 2017-06-14

[Ricardo]

Or perhaps the BoT might consider taking action to weaken the Baht, such as cutting interest-rates ?

[observer90210]

as we were saying in a thread yesterday but no one seemed to understand or believe...whatever.....

 

This is a catastrophic situation for importers...a realistic rate today for the THB would be around 40 to 45 THB for 1 US$. Exports will benefit, tourism will boost, investments etc etc…..

 

As for those who expect a price fall, do not dream as the greed of local retailers/distributors being what it is, even if imports cost less due to the strong THB, the prices won't be adapted to benefit the street consumer....