Thread: Offshore Baht hits new 11-year high

New York - The Thai baht was among the Top 10 most-traded currencies in the world on Wednesday, hitting the highest point since August, 1997.


At closing in the afternoon New York time, the currency was trading at exactly 30 baht per US dollar.


In Bangkok, the Bank of Thailand is under increasing fire for spending tens of billions of dollars in a futile attempt to weaken the baht against a world trend that weakens the dollar while boosting the baht value.


The street rate for the baht in Bangkok on Wednesday night was 32.06 baht per dollar - also a record since the 1997 Asian currency crisis.
Bangkok Post Main Entrance Page

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Excuse me, while I slit my wrists.

What wonderful news. Time to dig an even deeper hole....

^I think we are near the break point for US retirees on fixed income monthly pensions. Many did the math at 40 as the exchange rate. If it goes as low as 25, I would expect to see a mass exodus of US retirees from Thailand, as they could live cheaper and better in the USA at that rate perhaps.

Originally Posted by chinthee

If it goes as low as 25, I would expect to see a mass exodus of US retirees from Thailand, as they could live cheaper and better in the USA at that rate perhaps.

Well, I'm in the US now and there's not a chance I could survive here on what my pension is.

Even if the dollar goes to 25 I'll be able to survive in Korat, but without any frills. It won't be much fun, but certainly easier than trying to eke out an existence in the US.

I've already given up dining and drinking out. I guess the next thing is to give up beer and move to lao khao.

Do they still change worthless $ paper into Baht? I am afraid it is not a Baht problem but one of the US only. ALL other currencies in the world have no problems. But not every country can have such a great government as the US ;-)

^^Stroller has a very useful thread going now about bags of cheap white Thai liquor. Guess we'll all have to stock up now, at least those of us getting paid in US dollar denominations.

I'm not retired, but because of the way my business is structured, all of my monthly earned income is in US dollars. I use this money in Thailand. I'm not a happy camper now as I am losing very big amounts monthly.

It's not only US citizens affected. I know many executives elsewhere in Asia who are considering a second home in Thailand and eventually retiring. Many of these have salaries denominated in US dollars as a baseline. This affects many more people than just Americans.

Originally Posted by John

Do they still change worthless $ paper into Baht?

How kind of you to make jest of our plight.

Perhaps we'll see the dollar getting stronger next year, after the elections?

Certainly the worst presidential administration in my lifetime. I remember when Clinton left office, we had a big surplus and the question was how are we going to spend all of these riches?

Originally Posted by Bexar County Stud

Certainly the worst presidential administration in my lifetime.

But I'm not bitter about it. Really, I'm not....

Originally Posted by buad hai

Originally Posted by "John"

Do they still change worthless $ paper into Baht?

How kind of you to make jest of our plight.

I am sorry but you have to see the facts. The $ goes to next to nothing. It is not my fault. It is made by the US itself. Now you have Greenspan's WEALTH EFFECT. Hard to believe that this guy still can run around and the Americans still did not get the message what he did to them. But in any case - you still have your shoes as I can see on your photo. So not everything is lost.

Originally Posted by John

Americans still did not get the message what he did to them.

Some of us did which is why I'm astounded that McCain will be the next US President....

Originally Posted by buad hai

Originally Posted by "John"

Americans still did not get the message what he did to them.

Some of us did which is why I'm astounded that McCain will be the next US President....

This coming election is the next sad and hopeless story. But we should not forget that Bush won the election 2 times. So the US got what they wanted. Perhaps GWB would even get a 3rd chance - if he could ;-)

Perhaps this is why several of my family members have vowed to follow me offshore if the GWB surrogate wins.

Another point of view:

Originally Posted by William Jennings Bryan

Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests and the toilers everywhere, we will answer their demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.

I'm getting stuffed on the Won, Pound and Baht.

Money that gets sent to Thailand has dropped dramatically.

My money to the Uk is being raped.

Starting to think that it's time to keep it in Euro for the time being,.

Just had cash transferred from the UK, Bt15,000 less for the same amount than it was barely 3mths ago.

I don't even want to know what it is in comparison to 6mths or even 1yr ago - that would really start to get depressing.

Yes, I've decided to keep all unneeded dollars completely out of Thailand from now on, until and unless the rate strengthens to over 35 again. This means no buying toys, no more investing. A belt tightening.

Originally Posted by chinthee

no buying toys, no more investing. A belt tightening.

Same here. Happy to have a house and no debt. But it will be neither fun nor easy. And, when things go, they won't be replaced for quite some time.

^If it really does get disastrous and goes down to 25, I will quit converting any dollars. I will sell something locally and live off the proceeds.

Another quote from the cross of gold speech:

Let me call your attention to two or three important things. The gentleman from New York says that he will propose an amendment to the platform providing that the proposed change in our monetary system shall not affect contracts already made. Let me remind you that there is no intention of affecting those contracts which according to present laws are made payable in gold, but if he means to say that we cannot change our monetary system without protecting those who have loaned money before the change was made, I desire to ask him where, in law or in morals, he can find justification for not protecting the debtors when the act of 1873 was passed, if he now insists that we must protect the creditors.

Basically, Jennings wanted to devalue the currency so that farmers could pay their creditors with cheap money by setting the value of silver to gold at 16 to 1, which is less than the true market price of gold at the time. He basically wanted to do what the Fed does today, which is inflate the currency.

Times like these I wish I had more of an understanding about all this stuff. My (very) limited understanding is a rudimentary: 'GBP exchange rate falls = not good'.

Although that being said there is some measure of bliss to be taken from my ignorance as well.

Originally Posted by chinthee

^If it really does get disastrous and goes down to 25, I will quit converting any dollars. I will sell something locally and live off the proceeds.

How does your wife feel about that?

Originally Posted by AntRobertson

He basically wanted to do what the Fed does today, which is inflate the currency.

Of course. I was just showing that the debate is not a recent one....

^
And in the end, it is the regular people who are screwed and the rich who laugh all the way to the bank (which they own).