Thread: Thai currency continues upward trend

Originally Posted by Bangyai

Originally Posted by aging one

I must say I am liking it. I am buying a house back in America. In the last three months and still continuing is great for me. I need to change down 30,000 dollars to finish up my business. Three months ago that was a million baht, it is slowly creeping towards 930,000 baht.

Lucky you AO . Unfortunately, I'm in the boat heading for Klong Toei. In about 6 weeks time I'll need to transfer 20,000 pounds here for our new house. If I had done it at the begining of August I would have made almost 1,020,000. Now I'm down to about 950,000 ! Now if I were to sell our current home first , that would be a big help but then we'd have to rent temporary accomodation and make a double house move .... yuk

At this rate I will be opening my new business venture soon, under a footbridge somewhere with a plastic cup. I'm considering training up our pooch into this line of work so I can open up 2 branches at once.

That is why a high baht is good for Thai's, they are getting richer and you are getting poorer.

the high baht makes imports chaeper for Thai people

ive yet to see any reductions in the prices of imported foods in the supermarkets, or reductions in any imported goods available in thai stores.

Originally Posted by larvidchr

If you make your money exporting you double loose right butterfly, you export less since your price is high, you earn less since your pay is in foreign currency, but I suggest the loss in export quantity costs more than the in that context relative smaller loss in the exchange rate. But the important part here is that it is a massive collective loss to Thailand in export revenue, taxes ect.

Now what you're missing (as usual) is that it is not all Thailands superrich that are making their money on exports especially the richest one of them all, secondly during the beginning of the world economic crisis a lot of Thai fortunes where moved from THB to overseas accounts, that money have largely come back, so the very rich Thais hold most of their billions in Thai stock, property and in Thai banks just like Thaksin did, something he probably regrets today, the very rich Thais day to day earnings on export is peanuts compared to the value of their holdings in THB cash and Thai stock and property Butterfly.

If the Bahts purchasing power increases, then Thailand can afford to export less. Sure, exports will be less lucrative but that just means those businesses will contract and the service and consumer economy within Thailand will expand.The reason the consumer and service economy will expand is because Thai people will have more disposable income because they will be paying less for commodities.

Nice, but the man or lady on the street isn't going to notice any real difference.....

And with inflation getting higher and higher....

Originally Posted by taxexile

the high baht makes imports chaeper for Thai people

ive yet to see any reductions in the prices of imported foods in the supermarkets, or reductions in any imported goods available in thai stores.

But have you seen any increases in prices of imported foods ? Probably not.

And even if you did, as long as the baht in going up, prices are rising less for people earning baht.

Originally Posted by StrontiumDog

Nice, but the man or lady on the street isn't going to notice any real difference.....

And with inflation getting higher and higher....

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

Yes they will notice a difference. All the western expats have sure noticed that they are getting poorer and eventually the Thais will notice that they are getting richer. Every Thailand forum I have gone on, is full of expats bitching and groaning about the high baht, or in other words, their inflating western currency.

socal, see this

https://teakdoor.com/business-finance...ml#post1544801

Originally Posted by StrontiumDog

socal, see this

https://teakdoor.com/business-finance...ml#post1544801

3.3% is nothing

Just imagine how much worse it would be if the baht was falling by 15%.

[quote=StrontiumDog;1544806]

Originally Posted by socal

Originally Posted by StrontiumDog

Nice, but the man or lady on the street isn't going to notice any real difference.....

And with inflation getting higher and higher....

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

Yes they will notice a difference. All the western expats have sure noticed that they are getting poorer and eventually the Thais will notice that they are getting richer. Every Thailand forum I have gone on, is full of expats bitching and groaning about the high baht, or in other words, their inflating western currency.

Domestic inflation is going up fairly rapidly....

3.3% is not out of control, easily manageable will interest rates.

And prices of imported goods wont go down much, if at all....this is Thailand....when do prices ever go down?

If the baht is going up, that means prices are going up less for people earning baht and more for people earning dollars or euros. Its still a net gain for people earning baht.

And for the average Thai consumer, salaries don't go up much......

If the baht is rising, salaries are going up because their currency has more value.

You appear to be applying western logic to Thailand. A fatal flaw...

Originally Posted by socal

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

must be that Austrian Economics education

socal, get a clue, the fight against local inflation is to have a stronger THB

3.3% is quite high and probably higer than official stats. In these days and age of low interest rates, it is quite high, maybe in terms you can understand, as high as 8% or 9% if were with "historically normalized" interest rates.

Originally Posted by socal

If the baht is rising, salaries are going up because their currency has more value.

yes if the average population were buying western imports but that's hardly the case here

Bass akwards is the term I would use to describe socals position on this.

Originally Posted by Butterfly

Originally Posted by socal

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

must be that Austrian Economics education

socal, get a clue, the fight against local inflation is to have a stronger THB

3.3% is quite high and probably higer than official stats. In these days and age of low interest rates, it is quite high, maybe in terms you can understand, as high as 8% or 9% if were with "historically normalized" interest rates.

Somebody needs a clue here and it sure as hell aint me.

Deflation is a good thing, in case you didn't know.

Originally Posted by Butterfly

Originally Posted by socal

If the baht is rising, salaries are going up because their currency has more value.

yes if the average population were buying western imports but that's hardly the case here

Thailand imports oil and a whole lot of other commodities.

Originally Posted by aging one

Bass akwards is the term I would use to describe socals position on this.

Just because you don't understand, does not mean that I am "bass akwards".

I study macro economics, do you ?

Originally Posted by socal

Originally Posted by Butterfly

Originally Posted by socal

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

must be that Austrian Economics education

socal, get a clue, the fight against local inflation is to have a stronger THB

3.3% is quite high and probably higer than official stats. In these days and age of low interest rates, it is quite high, maybe in terms you can understand, as high as 8% or 9% if were with "historically normalized" interest rates.

Somebody needs a clue here and it sure as hell aint me.

Deflation is a good thing, in case you didn't know.

Where's the deflation?

DOMESTIC inflation is running at 3.3%.

Working class Thai's don't buy expensive foreign goods. They buy local produce.

Aso you appear to have forgotten how pricing works in Thailand, it never goes down. Do you really think importers are going to pass on the changes due to the currency changes? Hell no. They'll enjoy the increased profit margin. That's business for you here.

I buy a lot of foreign goods, but the prices only go one way...up.

Originally Posted by aging one

Bass akwards is the term I would use to describe socals position on this.

so low currencies are great in your mind ?

Is that what you want in your hoe country ?

Originally Posted by socal

Originally Posted by aging one

Bass akwards is the term I would use to describe socals position on this.

Just because you don't understand, does not mean that I am "bass akwards".

I study macro economics, do you ?

You might study it, but you seem to forget the 'rules' don't necessarily apply here.

You certainly seem unaware of what goes on here. Do you live in Thailand?

Thai baht continues appreciation : National News Bureau of Thailand

Thai baht continues appreciation



BANGKOK, 3 September 2010 (NNT) – The Thai baht currency has continued to strengthen on massive foreign capital inflow, standing at 31.13 THB/USD, according to latest reports.

A financial expert of Ayudhya Bank Plc, stated today that the Thai Baht has opened at 31.14/15 THB/USD, appreciating slightly from yesterday's closing of 31.15/16 THB/USD. The currency is likely to grow continuously due to a foreign capital influx left unimpeded by the Government.

A special meeting of economic cabinet members took place yesterday to assess the appreciation and consider if measures should be issued to weaken the currency.

The Thai baht today is projected to move to approximately 31.05-31.15 THB/USD.

The Japanese yen opened at 84.35/37 JPY/USD while the Euro started at 1.2830/2835 USD/EUR.

Originally Posted by socal

so low currencies are great in your mind ? Is that what you want in your hoe country ?

That kind of talk give you a chubby? Look the price of all foodstuffs is up over 25% in the last 2 years. Thats a lot for the average Thai. How much are eggs today in Thailand? Bet you cant tell me the price of pork, chicken, or rice just two years ago.

Those 4 items are at the top of the Thai food chain. They have all gone up radically. I am talking about Thailand. How long have you been here mate?

[quote=StrontiumDog;1544910]

Originally Posted by socal

Originally Posted by Butterfly

Originally Posted by socal

Inflation ????? INFLATION ?

If the baht is going up, that is DEFLATION.

must be that Austrian Economics education

socal, get a clue, the fight against local inflation is to have a stronger THB

3.3% is quite high and probably higer than official stats. In these days and age of low interest rates, it is quite high, maybe in terms you can understand, as high as 8% or 9% if were with "historically normalized" interest rates.

Somebody needs a clue here and it sure as hell aint me.

Deflation is a good thing, in case you didn't know.

Where's the deflation?

My main goal at the start of this thread was to try and make people realize that a stronger currency is better for Thai's. These transitions are never simple.

Lets say the price of oil stays constant for a day, on the same day the Euro goes down and the baht goes up. There is your deflation.

DOMESTIC inflation is running at 3.3%.

Mongolia's is 25%, the UK is 3.1, goes to show how far Thailand has come.

Working class Thai's don't buy expensive foreign goods. They buy local produce.

But they buy foreign oil and alot of other commodities.

Aso you appear to have forgotten how pricing works in Thailand, it never goes down. Do you really think importers are going to pass on the changes due to the currency changes? Hell no. They'll enjoy the increased profit margin. That's business for you here.

if that was so true then why dont Thai stocks on the SET have way higher profit margins then anywhere else ? Its a market, its all relative and prices will come down or go up less. They have to.

Originally Posted by aging one

Originally Posted by socal

so low currencies are great in your mind ? Is that what you want in your hoe country ?

That kind of talk give you a chubby? Look the price of all foodstuffs is up over 25% in the last 2 years. Thats a lot for the average Thai. How much are eggs today in Thailand? Bet you cant tell me the price of pork, chicken, or rice just two years ago.

Those 4 items are at the top of the Thai food chain. They have all gone up radically. I am talking about Thailand. How long have you been here mate?

I don't live in Thailand and I am not sure what it is like on the ground but I read reports on Thailand's balance sheet and it is solid. Low debt, surpluses in some sectors, good trade balance and huge foreign exchange reserves. Positive GDP growth ect. There is fundamental reasons why the baht is trending up.

Thailand is not an economic basket case, its far from it.

If the BOT was really smart they would start dumping their US treasuries and start buying gold.