Thread: Thai currency continues upward trend

^ yep but also saying Thai banks will exchange Baht to USD, EURO etc in house at close to the best retail exchange rates in the world. You can buy USD bank notes from a chinese money changing house here for extremely competetive rates if it's a decent amount.

Please continue at


https://teakdoor.com/business-finance...ml#post1573902 (Baht into dollars or Euro? Best way to exchange)

Originally Posted by 9999

You can buy USD bank notes from a chinese money changing house here for extremely competetive rates if it's a decent amount.

in 3M THB notes ? don't think it's worth it, and quite risky

Thai Banks will also go to offshore swap to buy USD, and you might get screwed again on the USD rates. With spread of 10% sometimes between onshore and offshore, we are talking 10,000 USD exchange rate fee

Would 3 mil Baht fit in a bag I could carry ?

For 11-13, 000 USD ? I can live on that for a year

It'a all so confusing, I've always just parked money in CD's
Need to really learn about this.
Like I have number dyslexia as I said earlier

Originally Posted by Ripley

Like I have number dyslexia as I said earlier

if you do, maybe not a good idea to enter into currency swaps and exchange rates as it can be very confusing even for those who don't suffer from it

Agree.

Time to move on from T land and this is a good time to unload the baht.
Do you it will go lower ( or higher ..?? Dyslexia ... )

oh dear, life is so difficult if you have too much money

dunno why you worry, the banks will screw you whatever

[quote=Ripley;1573919]Would 3 mil Baht fit in a bag I could carry ?

I've got a bag ThB 3,million would fit into nicely and I'll gladly demonstrate it to you personally.

Originally Posted by phomsanuk

Finance Minister Korn Chatikavanij said last month that Thailand’s rising currency reserves show that the central bank has already been buying dollars to curb volatility in the baht.

The Bank of Japan has been buying allot more dollars then Thailand. I don't think Thailand has bought any dollars, they have been selling.

The Japanese Yen just hit a 15 year high today. This was after the biggest intervention of any central bank this year.

Originally Posted by Ripley

Originally Posted by socal

Originally Posted by Ripley

Can someone please explain to me why the rates for selling and buying are different and what rate applies to selling baht and buying dollars

I'm about to unload the baht, any advice for getting it into dollars?
Seems banks in Thailand are all about gouging fees in foreign exchange accounts - should I wire it to my Singapore foreign currency account in baht?

Any thoughts on better to buy dollars or euros?

Euros are better then dollars long term.

Why you so compelled to get out of baht I dont know....

Why ? Do you recommend keeping baht?

Yeah, its going up in value for fundamental reasons, the dollar is going down

Originally Posted by Ripley

Would 3 mil Baht fit in a bag I could carry ?

For 11-13, 000 USD ? I can live on that for a year

Thats what gold is good for, its going up in value too.

..Thats $1359, not $1259 where it was a few days ago.

Originally Posted by socal

Originally Posted by Ripley

Would 3 mil Baht fit in a bag I could carry ?

For 11-13, 000 USD ? I can live on that for a year

Thats what gold is good for, its going up in value too.

Ok I can buy gold in Thailand? HOw t make sure I get the right weight and quality?

Originally Posted by Ripley

Originally Posted by socal

Originally Posted by Ripley

Would 3 mil Baht fit in a bag I could carry ?

For 11-13, 000 USD ? I can live on that for a year

Thats what gold is good for, its going up in value too.

Ok I can buy gold in Thailand? HOw t make sure I get the right weight and quality?

There is reputable gold dealers in Thailand that sell bullion. Ask on Thaivisa, some people on there buy all the time.

^ Thanks, but long banned from TV.

I'm also not anywhere near Bangkok.

Bond yield tax weighed

Levy on foreigners likely to slow inflows

• Published: 12/10/2010 at 12:00 AM
• Newspaper section: Business

The Finance Ministry is studying the pros and cons of scrapping a long-standing waiver on capital gains taxes for foreign investors in the local bond market, says Deputy Finance Minister Pradit Phataraprasit.
If completed in time, a package of measures aimed at assisting businesses adversely affected by the appreciation of the baht, together with new tax measures to deter speculative inflows would be considered by the cabinet today, he added.
The study follows reports Finance Minister Korn Chatikavanij may propose to the cabinet a new measure to control foreign capital inflows to slow the pace of the appreciating baht, coupled with tariff measures to ease the burden on Thai small and medium-sized business entrepreneurs (SMEs).
Mr Pradit said one idea being considered is to scrap the current exemption on capital-gains taxes for fixed-income investments for foreign investors, and unify tax rules with the 15% capital gains tax paid on investments by Thai individuals.
In any case, the government this week is expected to announce a plan of assistance measures to help SMEs with limited resources to hedge against currency risk or who have been particularly affected by currency movements due to low import content.
"We still have a lot of topics that need to be discussed as there are pros and cons to each tactic. Any group of measures can provide a different outcome," said Areepong Phucha-oom, permanent-secretary for the Finance Ministry.
The baht and other regional currencies have gained strongly against the dollar this year due to trade surpluses and capital inflows as investors seek to take advantage of higher yields in Asia's high-performing economies.
With interest rates in the US and Eurozone near zero, investment capital has poured into the region to profit from higher interest rates as well as stronger prospects for capital gains and currency appreciation due to stronger economic fundamentals.
Imposing a capital gains tax would effectively reduce the yields on investments and the attractiveness of local debt. Government bond yields yesterday corrected sharply on reports that authorities are considering a capital gains tax, with the five-year bond yield jumping 16.69 basis points to 2.71594% and the 10-year bond up 12.22 points to 3.12437%.
One hundred basis points is equal to one percentage point. Bond yields move opposite to prices.
The baht has become a political flashpoint in recent months, with industry groups warning that the stronger currency will hurt the country's export competitiveness over the next several months.
On the other hand, a strong baht reduces the cost of imports, in particular oil, and also eases inflationary pressure within the economy, giving leeway to the central bank to maintain lower interest rates.
Mr Pradit said authorities would co-ordinate programmes with state-controlled banks to develop hedging instruments for private businesses.
Dusit Nontanakorn, chairman of the Thai Chamber of Commerce, said local businesses were having trouble setting export prices due to the volatility in currency rates.
"When you set the selling price today, the actual delivery won't be for another two months, and who knows what the baht will be then," he said.
"[An exporter] might profit 5% or 10% from a sale and be happy. But if the baht appreciates 10% over the same period, it means a loss. Sometimes you can only accept the loss, just to help maintain the customer relationship."

about fucking time,

these are not speculative inflows. This action is bullshit and will probably not get through.

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1036005

Baht Control Measures Rolled Out

UPDATE : 12 October 2010

Prime Minister Abhisit Vejjajvia revealed today's Cabinet meeting endorsed the Finance Ministry's suggestion to collect a 15-percent withholding tax on margins and interest rate profits which foreign investors earn from their possession of domestic bonds.

The requirement will be imposed on new transactions carried out from tomorrow onwards.

The levy covers foreign investors' incomes on bonds issued by the government, state-run enterprises, and the Bank of Thailand.

The government has also introduced two more measures to contain the baht surge and to help small and medium entrepreneurs, or SMEs, in the export sector.

One is an accelerated disbursement of foreign currency-dominated budgets set aside for government and state-run enterprises' investments in this year's fourth quarter. The amount totals around 50 billion baht. The measure is designed to encourage business operators to subscribe foreign currencies in advance to enhance their competitive edge.

Another is to provide small and medium exporters with easier access to loans and more solutions to secure their revenue.

The Cabinet has ordered the state-run Small Business Guarantee Corporation to offer forward contracts for SME operators by charging them a fee of 0.75 percent of their export revenue.

The bank has also been asked to give loans to SME exporters of up to 300,000 US dollars each, under a total credit line of 200 million US dollars.

Finance Minister Korn Chatikavanij believes the new package will help up to 17,000 SME operators nationwide and ease pressure on the baht. Korn said the government has not decided when these measures will end.

http://www.bangkokpost.com/business/...-baht-approved

Measures to weaken baht approved

• Published: 12/10/2010 at 04:14 PM
• Online news: Economics

The cabinet has approved three measures to curb the strengthening baht, Finance Minister Korn Chatikavanij said on Tuesday.



The first measure is to slow down foreign capital inflow by removing the exemption from the 15 per cent withholding tax on capital-gains for fixed-income investments for foreign investors.

Another measure is to promote capital outflow by encouraging state agencies and enterprises to expedite the disbursement of investment funds in foreign currencies and buy foreign currencies in advance.

The third measure is to help small- and medium-sized business entrepreneurs affected by the appreciation of the Thai currency.

Mr Korn said the Export-Import Bank, the Islamic Bank, the Small and Medium Enterprise Development Bank and Krung Thai Bank will provide foreign exchange risk insurance for small- and medium-sized exporters entering a forward contract at no more than US$500,000 (about 15 million baht) each.

He said the Small Business Credit Guarantee Corporation (SBCGC) will launch a project to promote businesses to enter into foreign currency forward contracts with commercial banks. Small- and medium-sized exporters will pay only 0.75 per cent of the insurance fee.

"The deadline for all the measures has not been set yet but the measures relating to the banking system are effective immediately. The tax collection measures will take effect tomorrow," the minister said.

He said the government would consider introducing additional measures to curb the baht’s value if speculative cash inflow causes further heavy fluctuation in the exchange rate.

Finance Minister Korn Chatikavanij

He said his ministry will keep a close watch on the baht’s movement and track the real cause of the continuing foreign direct investment inflow.

“There will be no addition measures to oversee the baht’s value for the time being,” he said.

Mr Korn was confident the decision to scrap a long standing waiver on capital gains taxes for foreign investors in the local bond market, including re-imposing a 15 per cent withholding tax, would not lead to an immediate outflow of foreign investment capital.

The capital gains taxes would not be retroactive and apply only on the new transactions, he said.

The minister said both capital gains taxes and the measures to speed up foreign currency investment spending by state agencies and enterprises would help ease pressure on the baht.

http://www.bangkokpost.com/news/loca...n-t-be-stopped

Rampant baht can't be stopped

Few believe government can fight outside pressures

• Published: 13/10/2010 at 12:00 AM
• Newspaper section: News

Financial experts have expressed little confidence in the government's measures to rein in the baht as they believe outside influences are far too powerful and likely to stay that way.


In the opinion of Prapas Tonpibulsak, chief investment officer of Ayudhya Fund Management, Asian economies remain attractive to foreign investors as those of Europe and the US are too weak.

And it could take a week or more for the dust to clear from the new measures to judge how effective they are, he said.

• See also: Business applauds the bonds tax

Tuesday, the baht remained strong at 29.98/30.00 to the dollar compared to 30.03/30.06 the day before, compounding the problems of exporters.

The government and the Bank of Thailand have scrambled over the past week to try to rein in the baht's spectacular rise against the dollar.

The central bank has introduced steps to promote overseas investment of Thai companies and lifted the ceiling on foreign currency deposits.

The cabinet yesterday endorsed more measures proposed by the Finance Ministry to counter the baht's appreciation and to ease the damage being caused to small and medium exporters.

These include reimposing the 15% withholding tax on interest gains for foreign investors in the local state bond market. This will be in effect from today but will not be retroactive.

Niwat Kanjanaphoomin, president of the Thai Bond Market Association (ThaiBMA), said the effect of this would be to discourage foreign inflows of capital into the bond market.

Besides trying to control the money influx, the cabinet is promoting capital outflows by speeding up foreign currency investment by government and state enterprises. This is designed to reduce the impact on small and medium exporters by supporting forward contracts and providing them with soft loans.

Finance Minister Korn Chatikavanij expects the steps to ease the baht's rise and help reduce foreign exchange risks for 17,000 small and medium exporters.

But to market analysts, the steps are only a mild remedy that will not rein in the pace of the strengthening baht which has reached 11% against foreign currencies since early this year.

Even Prime Minister Abhisit Vejjajiva concedes the measures will not solve the problem.

"Going on [global] economic trends, the baht is not expected to get any weaker in the near future," he said yesterday.

"The measures instead are aimed at assisting small and medium exporters and will hopefully slow capital inflow."

Mr Abhisit indicated the government may add more steps in the next two weeks to encourage the private sector to import machinery that will help boost productivity and reap benefits from the baht's appreciation.

Mr Prapas said it will take about a week to get a clearer picture of whether the government is on track.

"It is too early [to jump to a conclusion]. At least one week from now we might probably see the picture of the impact of the measures," he said.

"We have to admit the remedy may not be strong enough. Asia is still a haven for investors compared to Europe and the US where the economies are weakening.

"Also, the interest rate is still far higher than elsewhere in the region."

Barclays Capital Research, like other market observers, agrees the impact of the measures on the baht will be minimal.

"At the margin, the elimination of foreign investors' exemption from the withholding tax is likely to moderate the pace of the baht's appreciation. But we do not believe these types of transactions are the primary source of the baht's strength," it said in a report.

"Even with the reduced attractiveness of Thai government bonds, we expect the baht's appreciation to continue over the next year, especially under expectations that the US dollar will remain weak in the coming months."

Too early for measures to limit baht surge now, says MPC


Too early for measures to limit baht surge now, says MPC


วันพุธ ที่ 13 ต.ค. 2553

• • 

BANGKOK, Oct 13 – The Bank of Thailand (BoT) has no plan to provide new measures to contain the stronger baht since it believes it is premature to do that, according to Siri Karncharoendee, a member of the Monetary Policy Committee (MPC).

Speaking after a special MPC meeting Tuesday, he said the committee discussed the continued baht appreciation and monitored progress on implementing government measures to curb the currency surge.

“The MPC must wait and see how effective previous state measures can rein in the continued baht rise. The panel believes that it is too early for the central bank to issue new measures to cope with the currency appreciation,” he said.

Amphon Kitti-amphon, another MPC member, said the Cabinet-endorsed measure proposed by the Finance Ministry to remove the exemption of the 15 per cent withholding tax on capital gains for fixed income investments for foreign investors as part of its effort to ease the stronger baht was justified as it could give both local and foreign investors equal and fair treatment in terms of tax collection.

In theory, he believed the move would be able to curb foreign capital influx to some extent, but it takes time to monitor whether the measure is effective.

Currently, he said, the baht is not the most extreme performer in the region, but had strengthened at a lower level than the Malaysian ringgit and the Indonesian rupiah. (MCOT online news)