BoT says exchange rate volatility not affecting Thai exports

 

BANGKOK, 11 July 2017 (NNT) - The Bank of Thailand (BoT) has concluded that current volatility in the exchange rate is not affecting Thai exports and has advised businesses to import machinery and technology while the Thai baht is strong. 

In a seminar held by EXIM Bank on a strengthening the Thai currency, Senior Director of the BoT Financial Markets Department Vachira Arromdee said Thailand's gross domestic product (GDP) this year is expected to grow by 3.5 percent, due to public and private investment programs. Exports are expected to grow by 4.1 percent. 

The Thai baht-- currently trading at 34 baht per US dollar-- is expected to continue fluctuating, but Vachira claimed it will not affect exports. Thai businesses are encouraged to take advantage of the stronger baht to import machinery and technology, as well as expand operations to neighboring countries. 

Meanwhile, EXIM Bank President Pisit Serewiwattana said his bank has helped SMEs to insure themselves against volatility through an exchange rate insurance program of 500,000 baht per customer at an annual interest rate of 3.5 percent. It also offers protections for SMEs against unpaid invoices through the company's receivables contract.

 

-- nnt 2017-07-11

Import, and pay the crooked customs!

27 minutes ago, webfact said:

but Vachira claimed it will not affect exports

bet the exporters believe differently

What will affect exports will be the shortage of workers,but still BOT ,like TAT and others,will say

this is teflon Thailand nothing affects us.

regards worgeordie

Makes perfect sense.

 

Step 1 - buy better machinery with the strong Baht.

Step 2 - man said machinery with low skilled/wage workers...oh damn...they all left to go back to their countries after the immigration crack down.

Step 2.1 - man said machinery with Thai workers at a higher wage

Step 3 - try to sell/export your more expensive goods (due to expensive machinery and higher wages) at a better price then your competitors who have better deals with their own govt.

 

Makes perfect sense...right?

Its the dollar that is going down, the Euro has been going up against the Bt. So they can export cheaper now to Europe but more expensive to the US. 

17 hours ago, webfact said:

BoT says exchange rate volatility not affecting Thai exports

On the other hand from exporters:

"Thai exporters have previously complained about a strong baht, fearing it would drag down exports in the second half of the year. Appreciation of the baht would make Thai products more expensive in the global market."  (2017-07-09) http://www.nationmultimedia.com/news/national/30320253

 

On 7/11/2017 at 3:37 PM, webfact said:

advised businesses to import machinery and technology while the Thai baht is strong. 

Free translation : Hurry up, we can't hold it much longer.

Then why has there been such a hue and cry from the leading exporters these past five months regarding the Bank of Thailand allowing the baht to be kept artifically high?? Those bozos at the B of T have their heads up their collective <deleted> and continue to tout the strong Thai economy despite all the warning signs. Mark my words, unless drastic action is taken the house of cards that is the Thai economy will come tumbling down. It's just a matter of when, not if.

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