Thread: Thai currency continues upward trend

^

Originally Posted by Butterfly

you have something to teach us ? what would that be ? how to be delusional and ride the gold fever ?

Someone that knows absolutely nothing about money thinks that gold is going up. Just like a little kid that sees the nominal dollar price of gold going up. It is far too complicated for you.

Failed Japanese FX Intervention Sends Gold To $1,300 | zero hedge

If you had sufficient intelligence for the subject, you would see that there is no gold fever, gold is the only constant in the equation. Ask people who bought gold with the Swiss Franc a month ago, if there is a "gold fever".
Dollar Hits All Time Low Against Swiss Franc | zero hedge

Originally Posted by Thaihome

Originally Posted by Nostradamus

Originally Posted by Thaihome

So far, exports have not been heavily impacted by the rising baht and have continued to rise

^ that article suggests otherwise.

The article discusses the impact to the profitability of the exporters, not the value of the exports themselves. The value of exports this year is on course to exceed the previous peaks of 2007/2008.

The problem is the exporters are getting much less Baht for the USD they are paid in, hurting their bottom lines. So far, the fact that the exported items are more expensive in USD has not caused the demand to go down. If the Baht continues to rise, that may become a problem in the future.
TH

Its not necessarily a problem. The Thai economy will just have to transition to a less export oriented economy. There is no way around it, any intervention that has been tried by other countries this year has failed

Intervention will not work for Thailand, it has not worked for Japan or Switzerland so it will not work for Thailand. If the BOT was smart(so far they have been) they will not even try.

BOJ Intervenes For Second Time In A Week, Fails | zero hedge

Swiss central bank lost billions with failed intervention - International Business Times

Originally Posted by Ripley

Korn: ‘Baht will strengthen further’

Handsome man, like an Asian Johhny Depp.
SO is the baht going higher?
Should I cashed out wednesday at 29?

The long term to medium term trend for the Thai baht is higher. I said it on ThaiVisa about a year ago and I will say it here again.

Sure, the dollar could catch a bid in the short term but in the medium term , that doesn't matter.(unless of course you have a leveraged Forex account but if your that dumb then you will end up in the soup lines anyway)

Originally Posted by Butterfly

^ indeed, well said.

haha. and gold is in a bubble, as if.

nice graph, did you do it yourself in Excel ?

we are in a reverse J-curve effect, awesome, don't think it was observed before, might be the first time

Central bank: No need for more measures to oversee baht


Central bank: No need for more measures to oversee baht


วันศุกร์ ที่ 01 ต.ค. 2553

• • 

BANGKOK, Oct 1 – The Bank of Thailand (BoT) sees no need to issue additional measures to oversee the baht value although the currency has strengthened by 9.46 per cent to 30.76 to the US dollar September 1-24 compared with the same period last year, according the central bank’s chief economist.

Mathee Supapongse, director of the BoT Domestic Economy Department, said the bank had done nothing wrong regarding the baht movement and therefore sees as unnecessary more measures to oversee it.

Still, the bank closely watches foreign capital inflow into the country.

He said that economic conditions in August continued expanding satisfactorily although the production and export sectors grew at a slower pace.

Exports in August increased 23.6 per cent to US$16.29 million, down from the 41.8 per cent growth in the second quarter of this year.

The demand for purchase orders from trading partners had slowed following the baht's recent rapid rise.

It is expected that Thailand's exports will subsequently decrease ikn value on a seasonal basis in some months, even though imports totaled $15.44 billion, up 41.8 per cent in all categories from the previous month.

Simultaneously, private consumption and investment increased as seen in the rise in the business confidence index in the three months ahead to 56.7 from 55.7 the month before.

Tourism had also picked up with the number of foreign tourists reaching 1.26 million, up 10.3 per cent from the same month last year, he said. (MCOT online news)

Originally Posted by StrontiumDog

He said that economic conditions in August continued expanding satisfactorily although the production and export sectors grew at a slower pace.

Doesn't that contradict what the Government is saying and what TH posted earlier?

http://www.bangkokpost.com/breakingn...ntrol-measures

FTI wants capital inflow controls

• Published: 1/10/2010 at 03:53 PM
• Online news: Economics

Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol has called on the Ministry of Finance and the Bank of Thailand to rapidly introduce foreign direct capital inflow controls.

“More than 100 billion baht in foreign capital has flowed into Thailand over recent months. This has caused problems for manufacturers, particularly the small and medium enterprises, due the baht’s continuing appreciation,” said Mr Payungsak.

The strong baht had affected the trade competitiveness of the manufacturers as Thai products had become more expensive than those of their competitors.

The FTI chairman also wanted the central bank and the Monetary Policy Committee to consider keeping the policy interest rate unchanged at 1.75 per cent.

In addition, Mr Payungsak called on the Small and Medium Enterprise Development Bank to set aside a five billion baht fund for providing loans for the SMEs affected fby the baht’s appreciation.

The FTI is preparing to discuss measures to curb the strong baht with the Ministry of Finance, the BoT and the Ministry of Commerce, he said.

Resignation of deputy BoT chief won’t affect efforts to curb baht surge, says PM
วันเสาร์ ที่ 02 ต.ค. 2553



BANGKOK, Oct 2 – Prime Minister Abhisit Vejjajiva on Friday indicated that the resignation of Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn would not affect efforts to curb the baht's fluctuation.

“It is a pity Mr Bandid decided to quit his post. Personally, I know him well. His resignation has not come from a different opinion on policy [to] Mr Prasarn Trairatvorakul, the new governor, because the latter has not yet started working at the central bank. I think the resignation was made for personal reasons,” he said.

Mr Abhisit said he understood all parties concerned shared a common view on the direction of the policy interest rate, although the Finance Ministry wants to review the matter.

Naturally, he said, outside agencies put a weight on economic expansion when considering the policy interest rate direction while the central bank has a duty to oversee economic stability.

“I think the policy adopted by the central bank on the interest rate does not go against that of the government,” he said.

Asked whether the resignation of the deputy BoT chief, who oversees the monetary stability, would cause a vacuum in efforts to address the baht surge, the premier said he did not think it would happen because the central bank had discussed the problem with the government all along and had a common understanding of a proper way to cope with the baht volatility.

mcot.net

ps , anyone seen the Finance Minister ?

.

oops !!!

Originally Posted by Nostradamus

Originally Posted by StrontiumDog

He said that economic conditions in August continued expanding satisfactorily although the production and export sectors grew at a slower pace.

Doesn't that contradict what the Government is saying and what TH posted earlier?

Doesn't actually support what the government has been saying and I posted?

TH

30.16 on the Bloomberg.

Originally Posted by StrontiumDog

Central bank: No need for more measures to oversee baht


Central bank: No need for more measures to oversee baht


วันศุกร์ ที่ 01 ต.ค. 2553

• • 

BANGKOK, Oct 1 – The Bank of Thailand (BoT) sees no need to issue additional measures to oversee the baht value although the currency has strengthened by 9.46 per cent to 30.76 to the US dollar September 1-24 compared with the same period last year, according the central bank’s chief economist.

Mathee Supapongse, director of the BoT Domestic Economy Department, said the bank had done nothing wrong regarding the baht movement and therefore sees as unnecessary more measures to oversee it.

Still, the bank closely watches foreign capital inflow into the country.

He said that economic conditions in August continued expanding satisfactorily although the production and export sectors grew at a slower pace.

Exports in August increased 23.6 per cent to US$16.29 million, down from the 41.8 per cent growth in the second quarter of this year.

The demand for purchase orders from trading partners had slowed following the baht's recent rapid rise.

It is expected that Thailand's exports will subsequently decrease ikn value on a seasonal basis in some months, even though imports totaled $15.44 billion, up 41.8 per cent in all categories from the previous month.

Simultaneously, private consumption and investment increased as seen in the rise in the business confidence index in the three months ahead to 56.7 from 55.7 the month before.

Tourism had also picked up with the number of foreign tourists reaching 1.26 million, up 10.3 per cent from the same month last year, he said. (MCOT online news)

Looks like the BOT is learning from others mistakes rather then make them on their own. Good on them, learn from the stupidity of BOJ and SNB and their failed interventions.

Bangkok Post : Korn: BoT to tackle strong baht

Korn: BoT to tackle strong baht

• Published: 4/10/2010 at 04:42 PM
• Online news: Economics

The Bank of Thailand is responsible for overseeing the baht's exchange rate and controlling its continually increasing strength, Finance Minister Korn Chatikavanij said on Monday.

The Thai currency hit a 13-year high of 30.14 baht against the US dollar on Monday morning.

"The central bank will have to address the continuing strong baht. The Finance Ministry has already given its suggestions on the matter.

Finance Minister Korn Chatikavanij

"It is up to BoT governor Prasarn Trairatvorakul to decide what measures will be used to handle the baht situation," Mr Korn said.

The minister earlier suggested that the BoT should weigh the importance between the baht's value and inflation, because raising the interest rate would increase the difference between domestic and foreign interest rates, which would definitely lead to the further appreciation of the baht.

His ministry will meet people from the Commerce Ministry and the private sector to discuss the liquidity for exporters affected by the appreciating baht. The Export-Import Bank and the Small and Medium Enterprise Bank will look after the liquidity problem.

Mr Korn also called on local commercial banks to reduce financial service fees further.

"Commercial banks should give fair treatment to the people since the cost is very low. The fees should be more just," he said.

He said the banks needed to drop their service fees continually since they can manage to lower their administrative costs.

"The banks are using people's deposit money to make profit by issuing loans, in which the difference between savings and loan interest rates is high," the minister said.

He said Krung Thai Bank will be the first commercial bank to reduce service fees, as agreed between the Thai Bankers Association and the Bank of Thailand (BoT). The Finance Ministry is Krung Thai Bank's major shareholder.

Bangkok Post : BoT denies acting to curb baht

BoT denies acting to curb baht

• Published: 5/10/2010 at 12:34 PM
• Online news: Breakingnews

The Bank of Thailand on Tuesday denied using stringent measures to curb the strong baht.

The baht's value this morning slightly weakened to 30.20-30.22 baht per US dollar from 30.17-30.1919 baht per US dollar yesterday.

BoT assistant governor Suchada Kirakul said the central bank was monitoring the baht's movements closely.

When reporters asked whether the stock market slumped heavily on Monday due to concerns that the BoT would implement new measures to tackle the baht's appreciation, Mrs Suchada said the bourse could be influenced by foreign central banks' intervention to prevent their currencies from strengthening further.

However, she remained tightlipped when asked about the possibility the BoT would intervene in the foreign exchange market.

Bangkok Post : TCC: BoT should rapidly step in

TCC: BoT should rapidly step in

• Published: 5/10/2010 at 01:18 PM
• Online news: Economics

The Bank of Thailand (BoT) should rapidly introduce measures to weaken the value of the Thai baht as trade competitiveness of exporters is diminishing, chairman of the Thai Chamber of Commerce (TCC) Dusit Nonthanakorn said on Tuesday.

Mr Dusit pointed out that the baht’s value was as high as 30 baht to US dollar, strongest in the Asian region.

“The values of our competitors’ currencies, such as Vietnam, South Korea and China are all weaker than the Thai baht. Thai manufacturers now have lost their trade competitiveness and therefore the central bank should quickly step in to help them out”, he said.

Asked about the Ministry of Finance’s policy to prevent the baht from further appreciating by encouraging the private sector to seek new export markets or to invest in foreign countries, TCC chairman said it could not be done in a short period. It would take a year to look for overseas trade partners and to start business.

“I just speak out fact about the negative impact from baht’s strengthening. If the government and the BoT fail to take action, I don’t know what to do.

“The appropriate value of baht could be at any level, but it must be the level that enables Thai manufactuers to stay competitive on world market”, he said.

Today, strongest in 13 years and if that's not bad enough there is 3% inflation.

Originally Posted by phomsanuk

Today, strongest in 13 years and if that's not bad enough there is 3% inflation.

Devaluation is inflation. If the baht falls in value, internationally traded commodities and currencies cost more for people earning baht.(INFLATION)

If a strong currency is so bad then why don't you want one ?

[quote=StrontiumDog;1572271]Bangkok Post : TCC: BoT should rapidly step in

TCC: BoT should rapidly step in

• Published: 5/10/2010 at 01:18 PM
• Online news: Economics

The Bank of Thailand (BoT) should rapidly introduce measures to weaken the value of the Thai baht as trade competitiveness of exporters is diminishing, chairman of the Thai Chamber of Commerce (TCC) Dusit Nonthanakorn said on Tuesday.

Why don't you lower your hourly pay too then Dusit ? Then you would be more competitive with your services too. Hell, work for 10,000 baht a month, then you can be the chairman of the Thai Chamber of everything.

Mr Dusit pointed out that the baht’s value was as high as 30 baht to US dollar, strongest in the Asian region.

So the prices of internationally traded commodities and currencies has gone down the most in the Asian region. Too much of a good thing....

“The values of our competitors’ currencies, such as Vietnam, South Korea and China are all weaker than the Thai baht. Thai manufacturers now have lost their trade competitiveness and therefore the central bank should quickly step in to help them out”, he said.

Ok, step in to keep the country poor. Keep them poor so westerners can keep coming on dirt cheap holidays while Thai people sit in factories all day making jewelry and shoes.

Asked about the Ministry of Finance’s policy to prevent the baht from further appreciating by encouraging the private sector to seek new export markets or to invest in foreign countries, TCC chairman said it could not be done in a short period. It would take a year to look for overseas trade partners and to start business.

a year ? Thats nothing.

“I just speak out fact about the negative impact from baht’s strengthening. If the government and the BoT fail to take action, I don’t know what to do.

Set up a factory in Detroit, that's what you can do.

“The appropriate value of baht could be at any level, but it must be the level that enables Thai manufactuers to stay competitive on world market”, he said.

Manufacturing isn't everything.

Just broke through 30

Bangkok Post : Baht strengthens to 29.95/97 a dollar

Baht strengthens to 29.95/97 a dollar

• Published: 6/10/2010 at 11:06 AM
• Online news: Breakingnews

The baht continued to strengthen, trading at 29.95/97 baht to the US dollar about 10.45am on Wednesday, an economist at CIMB (Thailand) Bank said.

The baht’s value was the strongest in 13 years, the banker added.

The baht’s strengthening was caused by the same old factors - the weakening US dollar and the continuing foreign direct investment inflow, he said.