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Thread: Baht Value

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    PAG
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    Baht Value

    I'm sure that I'm not alone in thinking this, but what on earth is maintaining the value of the baht at the moment?

    Sure, the Dollar/Euro and other notable currencies have been hit by various factors for many months, but what is it that makes the Baht bombproof? How on earth, particularly over the last 2 months with the protests in BKK, which have intensified immeasurably during the past few weeks, can the baht increase in value against the major currencies? The only thing that I can think of is that someone is buying it. But who?

    Any other country's currency would have plummeted with the events here, but no.

    Anybody got a rational answer to this?

  2. #2
    pompeybloke
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    Have pondered this one a lot and all I can put it down to is the fact that Thailand feeds itself and is not an importer/consumer economy. Although the political instability has reached new heights recently, economic reality remains un-changed....That's my tuppence worth- sure I'll be told not as this thread evolves.

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    I agree that Thailand appears to be in a fairly strong position re particularly debt. Exports are the most significant area being hit, and obviously the tourism sector.

    I still get the gut feel that something/someone is propping it all up. For example, in the construction area, I see so many buildings, be they residential or commercial, that have commenced/nearing completion etc, and there are absolutely no buyers. There is going to be a lot of debt default happening soon (probably happened already).

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    read a book on Purchasing Power Parity and maybe you will get a clue

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    45.15 Bhart to 1pound , terrible .

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    PAG
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    Quote Originally Posted by Butterfly View Post
    read a book on Purchasing Power Parity and maybe you will get a clue
    OK, this isn't an extensive explanation, though it does in fairly layman terms set out the principle of PPP:

    Purchasing power parity - Wikipedia, the free encyclopedia

    Still seems fairly fragile however, with the emphasis being on self sufficiency to sustain a currency's value.

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    don't sweat, you are an English teacher, you can't understand all that shit

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    PAG
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    Quote Originally Posted by Butterfly View Post
    don't sweat, you are an English teacher, you can't understand all that shit
    Just shows what you actually know about me. Not that there's anything wrong with someone teaching English of course. At least they are in demand. Maybe I'm not looking in the right places, but I don't recall seeing adverts of any kind for French teachers (other than transexual encounters).

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    since they froze the accounts of thakins cronies within thailand he has had to send in lots of cash from abroad - this huge influx of foreign currency is pushing the baht up.


    maybe...

  10. #10
    pompeybloke
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    I would of thought Toxin's money would be laundered into LOS in clandestine fashion rather than in the open market to avoid tracing.

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    ^^ better theory

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    ^^ Cambodia being a good place to smuggle from into Thailand.

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    Quote Originally Posted by nevets View Post
    45.15 Bhart to 1pound , terrible .
    I remember 31 to a GBP

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    Quote Originally Posted by PAG
    The only thing that I can think of is that someone is buying it. But who?
    Might they be tourists and exporters ?

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    Quote Originally Posted by Butterfly View Post
    read a book on Purchasing Power Parity and maybe you will get a clue
    there's no need for a book Thailand Economic Statistics, Thailand Economic Indicators for the Year 2009 Implied PPP Conversion Rate 16.759 , that's where the USD/THB is headed in the (very) long run.

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    Quote Originally Posted by PAG
    I see so many buildings, be they residential or commercial, that have commenced/nearing completion etc, and there are absolutely no buyers
    I wonder how all main developers like Sunsiri, Supalai, Noble, MK could make record profits in 2009.

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    Quote Originally Posted by PAG
    Anybody got a rational answer to this?
    Yes, the problems here are minuscule when compared to the world of shit that is soon to be facing the fiat currencies of the bankrupt west. They might all go to zero.

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    The baht is not strong, your home currency is weak

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    PAG
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    Some really good and enlightening answers here, but I'm not completely convinced. So, roll it again, what the ""ck is doing it? I'm watching severe damage along Silom Road, reading about riots outside the UK and US Embassy's in BKK, watching APC's rolling down the road and more smoke than anyone should inhale in a lifetime.

    So? Who is doing what?

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    Quote Originally Posted by Mousepad View Post
    Quote Originally Posted by nevets View Post
    45.15 Bhart to 1pound , terrible .
    I remember 31 to a GBP
    That was a long time ago , when was it, 97 when i came here it was around 90 i think when the asia market went down.

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    Quote Originally Posted by PAG
    So? Who is doing what?
    you need to buy a brain, not in THB

  22. #22
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    Quote Originally Posted by wefearourdespot
    I wonder how all main developers like Sunsiri, Supalai, Noble, MK could make record profits in 2009.
    I've got a Sansiri gaff and they have just had a party out front over the weekend trying to flog the last 10 units in the moo baan.
    Doesn't sound all that until you consider that about 30% of the houses are not even started yet!
    Thais are only buying "branded" houses nowadays and it's the top 4 or 5 "names" that are doing all the selling.
    Black diamonds? I shit 'em.

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    Quote Originally Posted by PAG
    I'm sure that I'm not alone in thinking this, but what on earth is maintaining the value of the baht at the moment?
    I'll be the first to admit that I know nothing about currencies and international finance, but if we know the answer to the question cui bono? (who benefits?), we might be in the right neck of the woods.

    The people who benefit from a low Baht are those trying to sell holidays to falangs and those trying to sell stuff abroad. The people who benefit from a strong Baht are those with stacks of money already in the bank.
    The sleep of reason brings forth monsters.

  24. #24
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    Quote Originally Posted by benbaaa
    The people who benefit from a strong Baht are those with stacks of money already in the bank
    as long as that money is baht, of course

  25. #25
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    Quote Originally Posted by benbaaa
    The people who benefit from a strong Baht are those with stacks of money already in the bank.
    This.

    They are clinging onto power at the moment.

    Also remember the British Pound is being kept low at the moment to encourage the economy. Look to the long term and you will see a 50/55thb range. The heady days of 75thb to the Pound are sadly behind us however a protracted economic crisis in Thailand, which now appears a distinct possibility, could see those days swiftly return.
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