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  1. #1
    Mid
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    Thailand : Thai cbank intervenes to support baht

    Thai cbank intervenes to support baht
    Tuesday, July 08, 2008

    SINGAPORE: The Bank of Thailand sold dollars in the currency market on Monday to support the baht near the key 33.60-per-dollar level, traders said.

    “I think the Bank of Thailand tried to protect the baht at 33.60,” a trader in Bangkok said.

    A second baht trader described the intervention, which has almost become a daily routine in recent weeks, as ‘soft’.

    The Thai baht still slipped to a seven-month low at 33.63 as investors dumped local stocks amid concerns about domestic political uncertainty.

    Thai stocks shed 1.6 percent on Monday as a Thai court is due to rule in the case against People Power Party deputy leader Yongyut Tiyapairat on Tuesday. If found guilty of vote buying in 2007 election, the case could eventually lead to the dissolution of the main party in the coalition.

    dailytimes.com.pk

  2. #2
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    Not very successful I think. Euro at 52.3

  3. #3
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    ^
    The Baht has barely moved against the Dollar and Sterling this week. The Euro has appreciated due to the recent interest rate hike.

    I would guess the Thais are trying to avoid an inflationary interest rate hike.

  4. #4
    Not an expat
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    Aren't interest hikes supposed to cool down inflation?

  5. #5
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    In the short term they do as they slow down spending, but then they feed through into prices thus pushing up inflation.

  6. #6
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by Mid
    The Bank of Thailand sold dollars in the currency market on Monday to support the baht near the key 33.60-per-dollar level, traders said.
    Careful there guys! Been down a similar road before and didn't work out too well.

    "Former Thai central Bank chief Berngchai Marakanond has been singled out by Thai authorities as responsible for depleting the country's foreign reserves in defending the Thai currency against speculative attacks that plunged the country into financial crisis in 1997.

    Prosecutors filed charges Wednesday against Berngchai for his role in the loss of 185.9 billion baht ($4.2 billion) incurred from more than 2,000 swap transactions undertaken by the Bank of Thailand (BOT) under his leadership between Nov. 1, 1996 and June 30, 1997 before the Thai currency was floated July 2, 1997."

    FOCUS: Ex-central bank chief blamed in 1997 baht crisis | Asian Political News | Find Articles at BNET
    Whenever you find yourself on the side of the majority, it is time to pause and reflect.

  7. #7
    Thailand Expat Texpat's Avatar
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    I recall my first trip to Thailand in 2000 when the baht was trading at ~43 for a buck.
    Kuhn Marakanond is a fine man. Does he have any children or cousins or close friends working their way up the BOT ranks?

  8. #8
    I am in Jail

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    Baht will return to 40 and higher as the house of cards unfolds. The good times will return

  9. #9
    bkkandrew
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    Its funny, as when the when the Baht strengthened to beyond 35 to the USD, this was described as a 'crisis' by the BoT, yet they are now intervening to prevent the 'solution' to the 'crisis'.

    TIT...

  10. #10
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    Quote Originally Posted by Lorenzo
    The good times will return
    yeah, the good times with 20% inflation instead of 10% will return,

  11. #11
    Thailand Expat

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    Korea's government are doing the same thing.

    Which is great for me. Sadly I changed all my money over last week when it got a little better.

    If I had waited a week I would have been 4% better off.

  12. #12
    ding ding ding
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    The crisis is buying that bloody expensive black stuff with these weak baht things. Isnt it?

  13. #13
    watterinja
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    Has Bush turned on the vacuum cleaner again?

  14. #14
    Days Work Done! Norton's Avatar
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    Quote Originally Posted by Butterfly
    yeah, the good times with 20% inflation instead of 10% will return,
    Yes. This certainly the downside of baht weakness. Not much effect on the average farang but will further hurt the average Thai.

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