#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Baht Value

## 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?

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?

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## pompeybloke

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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## PAG

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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## Butterfly

read a book on Purchasing Power Parity and maybe you will get a clue  :Roll Eyes (Sarcastic):

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## nevets

45.15 Bhart to 1pound , terrible .

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## PAG

> 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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## Butterfly

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

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## PAG

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


 :smiley laughing:    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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## Blake7

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...

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## pompeybloke

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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## Butterfly

^^ better theory  :Smile:

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## superman

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

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## Mousepad

> 45.15 Bhart to 1pound , terrible .


I remember 31 to a GBP  :mid:

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## wefearourdespot

> The only thing that I can think of is that someone is buying it. But who?


Might they be tourists and exporters ?  :Roll Eyes (Sarcastic):

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## wefearourdespot

> 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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## wefearourdespot

> 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.  :mid:

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## Spin

> 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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## phomsanuk

The baht is not strong, your home currency is weak   :mid:

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## PAG

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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## nevets

> Originally Posted by nevets
> 
> 
> 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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## Butterfly

> So? Who is doing what?


you need to buy a brain, not in THB

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## Bogon

> 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.

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## benbaaa

> 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.

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## wefearourdespot

> 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  :Smile:

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## Beadle

> 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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## robuzo

A strong baht:
1) Keeps imported goods, like construction materials, lower in price, so the construction boom keeps expanding, despite seeming just a bit irrational;
2) Keeps imported oil cheaper- a sudden spike in fuel prices and you'll see a really pissed off populace- authorities don't really want that;
3) Helps properties held by banks, especially commercial real estate, hold their value on the balance sheets of banks and investors; lots of CR, especially newer stuff (some of it visible in the video from Asoke yesterday) has been sitting there dead for a while, but has realized an increase in value due to exchange.

Smoke and mirrors

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## CharleyFarley

I first came here in '82, very simple :- 20 Baht to the dollar and 40 Baht to the pound.

It was like that for ages, and in '97 I remember getting over 100 for a few days around Christmas. If I'd  had the brains to speculate then, I could have made a fortune.
People were ripping taxi drivers out of their cars for a few Baht, and hotels were only accepting hard currency.

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## jojo333

For my family and I a strong Baht is good, if you have one foot in your home country and one foot here then yes I can understand your concerns, selfish as they may be.

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## kebabbaro

> Originally Posted by Butterfly
> 
> 
> 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.


Great links thank u very much  :coolio:

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## El Gibbon

A decidedly weird proposition.  Talking to another farang he positied:  That Toxin and a web of wealthy overseas supporters were buying baht hand over fist. The idea being that when the time was ripe they would all sell immediately and crash the value. Toxin would then ride in to save the day economically. 

His cohorts would then go to the head of the line for places at the trough to replenish their losses and he would continue to rape the country.

Definitely a joke I thought. But then realizing that squareface is one slick chinaman and devious to the max... hmmmmmmmmmm

Actually beginning to make some sense after watching the devastation over the last couple of days.  Large amounts of capital are going to be needed to rehab Bangkok alone say nothing of the tourist industry and foreign investment.

The damage to government infrastructure is very large and will eat a huge portion of future budgets.

E. G.

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## Blake7

^ that would require a lot of money! more than thaksin has for sure

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## Butterfly

the truth is that Thailand is successful economically, the special economic zoning is doing great, and there has been massive investment, colossal, billions have been poured in the last 7 years

we might see a reversal though as I am sure expats are starting to question the stability of that little paradise,

I can see a lot of relocation to Singapore coming,

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## Liquid

> For my family and I a strong Baht is good, if you have one foot in your home country and one foot here then yes I can understand your concerns, selfish as they may be.


Lucky for you that you have made the move already - when you got a better deal. 

I do have one foot in each country, as I make the move between UK and Thailand, but the exchange rate makes nonsense of my budgeting. What is more selfish about my position than yours? I will have to pay an additional cost, whereas you have saved a fortune.  

I have made a commitment to Thailand by planning to move there, I am not making any money on this deal so I do not think is selfish to whinge about the additional cost. The instability of exchange rates is a world wide concern, not just the GBP/THB rate. It is the difficulty that such instability causes for long term planning that is the headach. Yes, there are a few selfish people making a fortune out of the situation - but it isn't me.

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## Khun Custard

> 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've asked myself the same question....
Eerily, the dates 13th/14th of May also coincides with the 1998 Soharto riots in Jakarta.  I was in Bali that week and the Rp collapsed.

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## Beadle

> I have made a commitment to Thailand by planning to move there


It is a shame Thailand won't in turn make a commitment to you and you will be forced to stay on a Non-Immigrant or tourist visa.

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## Bettyboo

With all the political problems, financial losses from street riots in the capital etc, how does the baht maintain its strong position?

I was on skype to my brother; he was watching skynews telling me how it was showing the Thai army spraying bullets at unarmed protesters who were running away... so I asked him, "How does the baht stay so high?"
His reply, "Well, in the grand scale it's just a holiday currency, so no reason to fluctuate too much, the major factors in currency movement will be due to the opposed currency rather than the baht." He is a money dealer.

Maybe, living in the land of smiles, we're too close to see the bigger picture?

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## Liquid

> Originally Posted by Liquid
> 
> I have made a commitment to Thailand by planning to move there
> 
> 
> It is a shame Thailand won't in turn make a commitment to you and you will be forced to stay on a Non-Immigrant or tourist visa.


Yes, its a bit bloody mean policy. However that is a "political" rule that allows those in "control" to show who is boss. I take my lead from the Thais I meet on my visits, and most of them are very welcoming - even those who are not out to exploit me. There are obviously many who are exposed to the tourist and expat industry whos aim is to make a large profit out of farangs, but the rest are really nice.

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## RPETER65

> Originally Posted by Liquid
> 
> I have made a commitment to Thailand by planning to move there
> 
> 
> It is a shame Thailand won't in turn make a commitment to you and you will be forced to stay on a Non-Immigrant or tourist visa.


 
Why would you care under what authority you can stay in Thailand, as long as you can live and do where and what you like.

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## Liquid

> Originally Posted by Beadle
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Liquid
> ...


Because if the authorities want to be difficult I could end up with a house and all my belongings in Thailand and no  Visa renewal  :mid:

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## setaputra

:Trolling: 


> I first came here in '82, very simple :- 20 Baht to the dollar and 40 Baht to the pound.
> 
> It was like that for ages, and in '97 I remember getting over 100 for a few days around Christmas. If I'd  had the brains to speculate then, I could have made a fortune.
> People were ripping taxi drivers out of their cars for a few Baht, and hotels were only accepting hard currency.

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## setaputra

> With all the political problems, financial losses from street riots in the capital etc, how does the baht maintain its strong position?
> 
> I was on skype to my brother; he was watching skynews telling me how it was showing the Thai army spraying bullets at unarmed protesters who were running away... so I asked him, "How does the baht stay so high?"
> His reply, "Well, in the grand scale it's just a holiday currency, so no reason to fluctuate too much, the major factors in currency movement will be due to the opposed currency rather than the baht." He is a money dealer.
> 
> Maybe, living in the land of smiles, we're too close to see the bigger picture?


He makes a good point

To an extent too the big boys are selling foreign reserves but they will reverse that and make a killing when they deem the time opportune.  That's what happened in 79

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## aras

> Talking to another farang he positied: That Toxin and a web of wealthy overseas supporters were buying baht hand over fist. The idea being that when the time was ripe they would all sell immediately and crash the value. Toxin would then ride in to save the day economically.


A very retarded estatement. the guy who told you that probably can't count lol
lol  



> the truth is that Thailand is successful economically, the special economic zoning is doing great, and there has been massive investment, colossal, billions have been poured in the last 7 years


Butter ass usual your connection with reality is lost. Ass we speak many companies have/are changin thailand for vietnam and other countries. In the value of a currency the last 7 years don't count ass much as last month. I am no expert just like every one here and know that these things are complicated, specially in countries where there is no transparancy in the political policies......
But it sucks, specially sor the people depening on their pension.

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## Butterfly

> Butter ass usual your connection with reality is lost. Ass we speak many companies have/are changin thailand for vietnam and other countries. In the value of a currency the last 7 years don't count ass much as last month.


can you spell ? it's "as" not "ass"

speak of lost reality, do you realize that the current currency level happens because of the last 10 yr growth, and Wednesday 19 events can't wipe that history in a single day ? or are you just simply retarded ?





> I am no expert just like every one here


indeed, and reality is definitely lost on you, so look yourself in the mirror first before attempting to make humorous comments  :Roll Eyes (Sarcastic):

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## robuzo

> As we speak many companies have/are changin thailand for vietnam and other countries.


And plenty that can't do so immediately wish they could.  Vietnam just doesn't quite have the infrastructure some companies need- yet.

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## Beadle

The Baht has strengthened again since Thursday.

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