Thread: Thailand : Devaluation of baht can help export: Finance Minister

Devaluation of baht can help export: Finance Minister

Finance Minister Suchart Thadathamrongvej said he would like the baht currency to depreciate by five percent to help stimulate the export sector and shoulder the economy in 2009.

The economic growth for next year should stay at four percent or lower while the export growth would be no more than 10 percent due to the global economic crisis, he said.

The minister said he will discuss the devaluation of Thai baht with Deputy Prime Minister Olarn Chaipravat, who is in charge of overseeing the national economy.

bangkokpost.com

Atta boy Thadathamrongvej.

Now you're thinking!

GO GO GO GO.

Thadathamrongvej for PM.

Stop the demonstrations and the riots.

Finally someone is showing some business sense and to help the country.

10 % would be nice.

Originally Posted by Mid

he would like the baht currency to depreciate by five percent

Thadathamrongvej is a small minded squeak.
Go for 50%

Time to buy that shed on the hill...........

eerrrrmmmmm He may not have a hell of a lot of say in the matter if things continue to go south. Also could be a ploy actually knowing they can't keep supporting it forever.

Either way.

E. G.

PAD and the sufficient economy idea will have a different train of thoughts but then again they can't and won't be able to keep supporting the baht forever.

Devaluation or a big crash later sounds good to me

Santa may visit after all.

I thought the Governor of the Bank of Thailand decided exchange rate policy - or am I worng?

Also, devaluation of a currency does not necessarily equate to cheaper exports, if imports (such as electricity and technology) become more expensive - resulting in an increased cost of living, with resulting pressure on labor costs.

It's too simple to look at it that way.

Devaluation of Baht 'Helps' Exports

In Other News:

Being Catholic 'helps' Pope;

Solvency 'helps' banks;

Posters of Bush 'help' Obama...

^With the MoF's own fugures now showing inflation in Thailand in doublt digits, it would be interesting to see BBKAndrew how a devaluation of the Baht would solve this problem?

In any event, most of the Baht's gains are on the back of the US Dollar - and the US Dollar always gains in an election year.

increasing exports will only results in more inflation at this stage,

This is not the same Thailand as it was between 1997 and 2002, things have improved greatly since, production is at full capacity, and the successful export have already put pressure on the THB by itself,

Maybe the current financial crisis could help the THB lose a few, but not by a significant margin like 20%, the days of THB at 40 could really be over unless the USD becomes the hottest currency on earth (also a possibility)

as long as they make a mess of the sittuation and the Baht value drops to 70THB to the UK Pound: I am happy

article has been fleshed out some , adding the following ............


However, Bank of Thailand (BoT) governor Tarisa Watanagase said the central bank will carry on keeping the value of Thai baht to be in line with other regional currencies.

She said foreign investors were selling off their shares to support their mother companies in Europe and the United States, causing the Thai currency to weaken.

According to the BoT chief, keeping the value of baht to the same level as other currencies in Asia would not cause Thai exporters to be at a disadvantage. However, they should adjust themselves by expanding and improving their investments.

The baht on Monday was little changed at around 34.4 per US dollar.

Bangkok Post | Breaking News | Suchart: Baht devaluation can help exports

^^^^(William) It won't solve the domestic inflation problem one iota, but will offset the price increases for exports, which is essential when faced with collapsing export markets.

Originally Posted by Mid

However, Bank of Thailand (BoT) governor Tarisa Watanagase said the central bank will carry on keeping the value of Thai baht to be in line with other regional currencies.

Well, if kept in line with the Korean Won, we will all be laughing!

Originally Posted by El Gibbon

eerrrrmmmmm He may not have a hell of a lot of say in the matter if things continue to go south. Also could be a ploy actually knowing they can't keep supporting it forever.

"The baht is crashing- don't worry, it's all part of the plan! It's great for exports, did you know?" Pre-emptive ass-covering. . .

Originally Posted by Mid

According to the BoT chief, keeping the value of baht to the same level as other currencies in Asia would not cause Thai exporters to be at a disadvantage.

I wonder how involved she/he/it is in the export market???

Originally Posted by robuzo

"The baht is crashing- don't worry, it's all part of the plan! It's great for exports, did you know?" Pre-emptive ass-covering. . .

Exactly. Lip stick on the pig.

Originally Posted by Mid

However, Bank of Thailand (BoT) governor Tarisa Watanagase said the central bank will carry on keeping the value of Thai baht to be in line with other regional currencies.

I think he's fibbing. BoT must be running out of enthusiasm and funds for propping the Baht up.

^and it's a "she"

Originally Posted by William

and it's a "she"

You know you're right! Shoulda looked closer at the name. Then again, I have met a few Tarisa's in Thailand of questionable gender.

The Thai baht has to devalue to ake exports cheaper and attract buyers. In the area that I live the loss of exports is already being felt and this has nothing at all to do with PAD