Author Topic: Baht strengtening/weakening  (Read 28546 times)

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Offline Johnnie F.

Baht strengtening/weakening
« on: February 09, 2012, 01:12:43 PM »
Baht strongest in 2 months    
     
BANGKOK, 8 February 2012 (NNT) – The baht has appreciated to the highest level in two months after the Euro rose for the first time during the same period. The Euro has strengthened due to investors’ confidence that Greece will accept the second round of aid to avoid a default.

Soon after the market opened today, the baht currency appreciated 10 Satang to 30.86 against the greenback or 1% compared to yesterday’s closing value of 30.95. The baht had been continuously rising to 30.80-30.83 against the US dollar at 10.30 am.

Currency analysts said apart from the positive sentiment about Greece, continuous flow of funds to Thai stock markets contributed to the two-month high of the Thai currency. The analysts forecast that the baht would keep on strengthening in a short term but suggested a close watch on whether Greece would be able to tackle its public debt problem.

As for domestic gold price, it has increased by 250 baht per troy ounce to 25,500 baht per troy ounce for gold bullion. As for gold ornament, it is now sold at 25,900 baht per troy ounce after the Fed Chairman said in Congress that the US economy would recover at a slower rate, and therefore interest rate must remain low.

NNT

Thread title changed on 8/13/2015 by admin upon request
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Offline thaiga

Re: Baht strongest in 2 months ♦ FTI wants action on strong baht
« Reply #1 on: January 19, 2013, 06:37:54 PM »
The Bank of Thailand should intervene to ensure the Thai baht moves in line with other regional currencies, says the Federation of Thai Industries (FTI).

FTI chairman Payungsak Chartsuthipol said on Saturday he was concerned that the strong baht would affect the trade competitiveness of Thai manufacturers, particularly exporters.

The baht has appreciated by 1.2% against the dollar since the start of this year. It gained 3.1% in 2012 after advancing 5% in 2011. The Thai currency has been the second strongest performer in Asia so far this year, behind the Malaysian ringgit which has gained 1.8%.

Finance Minister Kittiratt Na-Ranong conceded that if the baht appreciated much more, it could affect the competitiveness of Thai exports. He contends that the gains do not reflect real demand for Thai baht.

However, demand for baht is expected to remain very high as foreign funds pour into the country's stock and bond markets in search of higher returns than in developed markets.

Average daily turnover on the Stock Exchange of Thailand has exceeded 50 billion baht since the start of this year, compared with an average of 32 billion in 2012. Foreign funds account for 20% of trade on the local stock market.

It is the duty of the central bank to oversee the short-term baht fluctuations and rapid inflows and outflows of foreign investment, said Mr Kittiratt, who is also deputy prime minister for economic matters.

Central bank governor Prasarn Trairatvorakul said the baht fluctuation was caused by foreign capital inflows to the local bond and stock markets.

He also admitted that there were signs of short-term profit-taking by foreign investors.

However, the baht's movement was in line with those of other currencies in the region and therefore no intervention was taking place at this time, Mr Prasarn said.

Thiti Tantikulanan, head of the capital markets business division at Kasikornbank, projected the baht would appreciate to 29.50 by mid-2013 and further strengthen to 29.00 baht by the end of the year.

bangkokpost
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Offline thaiga

Re: Baht set for biggest weekly loss
« Reply #2 on: January 25, 2013, 12:45:16 PM »
Thailand's baht was headed for its biggest weekly loss since June amid concern its appreciation to a 17-month high versus the United States dollar and a four-year high against the yen will hurt exports. Government bonds held steady.

The currency snapped a run of seven weekly rallies after Thailand reported overseas sales data on Jan 23 that missed economist estimates. Finance Minister Kittiratt Na-Ranong said yesterday he would like to see the baht "a little bit" weaker as appreciation was putting pressure on exporters. The currency reached the strongest level since Aug 2011 versus the dollar on Jan 21 and hit the highest level since Oct 2008 versus the yen on Friday.

"The authorities are getting more uncomfortable with sharp appreciation against the dollar and the yen," said Wee-Khoon Chong, a strategist at Societe Generale SA in Hong Kong.

The baht slumped 0.4% from a week ago and 0.2% Friday to 29.86 per dollar as of 8.50am in Bangkok, according to data compiled by Bloomberg. That was the first five-day loss since a period ended Nov 16 and the biggest weekly drop since June 22. It rose 0.7% Friday versus the Japanese currency to 3.0289 yen, earlier hitting a four-year high of 3.0410 earlier.

One-month implied volatility, a measure of expected moves in exchange rates used to price options, jumped 35 basis points, or 0.35 percentage point, to 4.67% this week. The rate climbed 22 basis points Friday.

Exports, which account for about two-thirds of Thailand's economy, rose 13% in December after an increase of 27% the previous month, according to official data. The median forecast of economists in a Bloomberg survey was for a gain of 21.5%. Japan is the second-largest buyer of Thai shipments, after China, and the US is the third-biggest.

The yield on the 3.125% government bonds due Dec 2015 held steady this week and today at 2.93%, data compiled by Bloomberg show.

bangkokpost
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Offline thaiga

Re: Industrialist says stronger Thai baht only short term
« Reply #3 on: January 28, 2013, 04:05:59 PM »
BANGKOK, Jan 28 –A senior Federation of Thai Industries (FTI) officer predicted that the appreciation of Thai baht will be short term given its slight depreciation today.

FTI Secretary-General Thanit Sorat said the rapid strength of the Thai currency was mainly due to the inflow of foreign funds to turn a profit in Thailand where interest rates are higher than in western countries.

Interest rates from the government’s bonds provide 3-3.5 per cent yields, higher by 1 per cent than in the US and Europe, he said, expressing belief that the inflow of foreign funds for speculative investment in the Thai stock market will gradually slow down and the central bank has closely monitored the situation.

The current profit earning ratio in the Thai stock market has increased 16 fold which is rather high, he said.

He added that manufacturers and exporters in the automotive and electronics industries have cashed in on the strong Thai baht while small and medium-size businesses are on the losing side due to higher prices of imported raw materials.

The appreciating currency has weakened Thai exporters’ competitive edge by 1-2 per cent due to higher product prices but they are more concerned with the fluctuating currency movement rather than the strong baht, he said.

The most important factor favouring export growth is the economic stability of Thailand's trading partners, not the country's currency strength or weakness, he said, citing an example in 2011 when the Thai baht was Bt29 to a US dollar but Thailand enjoyed a 14-15 per cent export growth. (MCOT online news)
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Offline thaiga

Re: Baht strongest in 2 months ♦ measures to tackle strong baht
« Reply #4 on: February 18, 2013, 03:39:58 PM »
BoT introduces three measures to tackle strong baht

BANGKOK, 18 February 2013 (NNT) - The Bank of Thailand (BoT) has revealed three measures to tackle the strong baht, all aimed at encouraging baht holders to use the baht to buy more foreign currencies.

The BoT is reportedly in the process of authorising three measures to weaken the baht. The first measure is to lift the limit on the amount of investment that SMEs and individual investors can invest in foreign properties. Earlier SMEs and individual investors had to ask for authorisation from the BoT for any investment larger than 50 million US dollars.

The second measure is to allow those with loans in foreign currencies to buy and deposit foreign currencies in their accounts, in amounts no larger than the size of their loans.

The third measure is to lift the limit on the amount of money that may be transfered outside of the country, previously capped at 2,000 US dollars per transaction. The measure will allow transfers of funds of any amount according to the transferer's need, subject to authorisation by the BoT.

The measures came after the Finance Ministry pressured on the BoT to urgently solve the problem of the strong baht. Commenting on the current situation, Assistant to the BoT Governor on Financial Markets, Chantawan Sucharitkul said that there would still be an influx of capital into the country in April, but the it would not be as strong as that in March.

As for capital control measures, Ms Chantawan said the BoT "does not consider a capital control measure appropriate at this point", pointing out that the BoT has different levels of measures suitable for different levels of imbalances.
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Offline thaiga

Re: Govt won't act to halt baht's rise ♦ Currency hits 16-yr high
« Reply #5 on: March 21, 2013, 12:05:46 PM »
Everything that goes up must come down. The higher it goes the harder it falls.

Currency hits 16-yr high; govt spending will ease pressure on unit, Kittiratt says

BANGKOK: -- Financial authorities yesterday remained adamant that they would not intervene in the foreign-exchange market despite renewed calls for action from the private sector as the baht strengthened to a 16-year high of 29.14 to the US dollar on waves of capital inflows.

"There will be no measure to intervene in the foreign-exchange market," Deputy Prime Minister Kittiratt Na-Ranong said.

Kittiratt, also the finance minister, urged patience, saying the imports that would account for half of the government's Bt2-trillion infrastructure investment plan would balance the forces pushing up the currency.

"The plan should kick off late this year or early next year. Until then, everyone needs to live with the appreciation," he said.

He showed little sympathy for some of the grumblers, saying an ill-advised response by authorities could backfire.

"For those seeking short-term gains, they can't complain when facing losses," he said.

"An unconventional measure will only ruin confidence among the global community," he said.

The Bank of Thailand is the authority in full charge of currency stabilisation, he said. However, the central bank should have lowered the policy rate when the baht was trading above 31 per greenback. A rate cut is the real solution while the government has taken other steps like introducing incentives for machinery imports, he added.

Bank of Thailand Governor Prasarn Trairatvorakul also said there was no need for special remedies despite the "rapid appreciation".

Thailand's economic success story is drawing in funds, while foreign players are skittish about the election in Malaysia and chronic current-account deficits in Indonesia, he said.

The baht matched 1997's peak of 29.14 after advancing 0.8 per cent yesterday, the biggest gain since January 2. The currency is up nearly 2 per cent this month and 4.7 per cent this year, though four other major currencies in Southeast Asia declined this month.

The robust recovery has continued to attract international attention, mostly to the bond market. After net buys of $6.4 billion (Bt186.2 billion) in the first two months, this month foreigners have bought $2.4 billion net of local bonds.

This month alone, foreign net buys of Thai stocks reached Bt8.89 billion after net buys of Bt6.5 billion ($250 million) in the first two months. Worries over the euro zone's future following the Cyprus episode as well as possible forex intervention have weighed on market sentiment in the past three days, after the Stock Exchange of Thailand (SET) Index zoomed to a 19-year high last week. Most Asian stocks yesterday declined amid concern that Cyprus' rejection of a bailout plan shows Europe will struggle to contain its debt crisis.

"The [Thai] economy is very solid and the central bank seems to be quite tolerant with the baht's gains," Kozo Hasegawa, a foreign-exchange trader in Bangkok at Sumitomo Mitsui Banking Corp, told Bloomberg. "But because the pace of appreciation was so fast, the tolerance doesn't mean they won't intervene at all, and we may see some correction soon."

Standard Chartered Bank sees the baht ending the year at 29.75, versus 29.10 forecast by Nomura. Kasikornbank has 28.50 in mind.

Thiti Tantikulanun, head of capital markets at KBank, admitted that the baht yesterday was not dancing in line with regional currencies. He attributed that to massive dollar sales by exporters, who fear further appreciation, which would reduce their income in baht terms.

"That's on top of inflows to the bond market, which is the major driver behind the appreciation," he said. While dollar sells will continue, he discounted the baht trading above 29 in the short term.

Vallop Vitanakorn, vice chairman of the Federation of Thai Industries, said that if the central bank announces no measure this week, the FTI will seek a meeting with its governor.

Kasikorn Research Centre estimates that every 1-percentage-point rise in the baht would shave 0.30 percentage point off of economic growth.

the nation
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Offline thaiga

Re: Baht strongest in 2 months ♦ Authorities play it cool
« Reply #6 on: March 22, 2013, 02:35:36 PM »
The Bank of Thailand and the Finance Ministry have shown great tolerance for the surge in the baht, which yesterday touched 29.09 to the US dollar, yet another post-1997 high.



Unmanageable risk from the flood of liquidity produced by the US, the EU and Japan to tackle their economic woes is one explanation. Sounder domestic economic fundamentals are another.

The central bank seems more inclined to let market forces influence the foreign exchange market.

Prasarn Trairatvorakul, governor of the Bank of Thailand, has said the rapid appreciation of the baht on Monday and Tuesday mainly reflected improved sentiment in the Thai economy relative to others in East and Southeast Asia.

Around the region, Malaysia will hold a general election mid-year, heightening business climate risk, Indonesia is mired in a current account deficit, and South Korean exports stand to be seriously affected by Japan's depreciating yen.

Mr Prasarn said foreign holdings in the domestic bond market have increased over the years.

But it remains more attractive than others in the region, as the lower proportion of foreign holdings creates better opportunities for investors to rotate their portfolios.

The Finance Ministry has affirmed that no "non-market measures", meaning capital controls, will be implemented.

Analysts say the Thai market previously underperformed its regional peers in the wake of domestic political turmoil and the flood crisis, and this year's foreign capital inflows partly reflect investors' attempts to catch up.

This was also triggered by news of the US backing away from the fiscal cliff at the start of the year.

The US Federal Reserve's announcement of an indefinite time frame for US$85 billion worth of asset purchases per month and Japan's policy of increasing money injections into the economy guarantee the global economy will still have increased liquidity on its hands for the foreseeable future.

Bank of Thailand data show foreign capital inflows to the local bond and equities markets totalled $2.83 billion in January, a 2.5-fold increase year-on-year, with most of it into short-term bonds.

But the inflows decreased to $200 million last month, with some weeks recording net capital outflows in response to election news in Italy and negative developments in the euro zone.

In 2006, the central bank extensively intervened to address a strengthening baht, followed by imposition of a 30% unremunerated reserve requirement.

The difference now, however, is the domestic economy is enjoying strong demand growth and the global economy is is expected to see some improvement in the second half of this year.

Analysts feel policymakers' greater tolerance this time around could be a bid to support structural adjustments to make the economy more productive and expand the domestic demand base.

The central bank and the ministry also hope any effects of the capital inflows will be countered by more outbound investment, imports and foreign debt repayment.

Kobsidthi Silpachai, the head of capital market business research at Kasikornbank, said the central bank has delivered a clear message of handing over the job to the private sector by hedging contracts.

However, he voiced concern about the heavy burden on exporters.

But Barclays Capital analysts wrote in a report that they do not expect the central bank to take action in the near term to stem the baht appreciation.

They expressed confidence Thai economic fundamentals are strong enough to shoulder the strengthening currency.

Baht appreciation of 4.5% to the dollar is not seen as significant, and the yen's weakness has been positive for the Thai economy, said the report.

"The baht's appreciation of more than 20% against the yen over the past six months has been a strong positive, given that imports from Japan account for 7% of gross domestic product. Moreover, as an important part of the Japanese automotive sector's supply chain, lower import prices support corporate profitability and make re-exporting more competitive," they wrote.

bangkokpost

Finance minister: Stay the course, corporate mavens

While ruling out the possibility of short-term measures to rein in the strong baht, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said the Thai currency should be weakened to help drive exports.

"We want to see exports grow at a higher rate, and to make that happen, the baht should be weaker and interest rates lower," he told the CEO Economic Outlook forum in Bangkok yesterday.

However, Mr Kittiratt said the government will not use short-term measures but rather existing monetary and fiscal policies.

"The short-term measures used by Thailand several years ago to curb capital inflows were not deemed acceptable by the international community. We don't want to create the perception that Thailand is used to such tactics. The government does not want to use a surprise measure," Mr Kittiratt said as he played down calls from business leaders for the government to launch measures to curb short-term capital inflows.

He also brushed aside speculation the exchange rate will hit 27 baht to the US dollar.

"It is impossible that the baht will reach 26 or 27 baht to the dollar, as market forces will play their role to correct the rate. But before that happens, we don't want to see a strong baht hurting employment," he said.

The state's 2-trillion-baht infrastructure investment plan and 350-billion water management scheme will trigger rising capital outflows to help tame baht gains, said Mr Kittiratt.

He pointed out stability of the exchange rate and interest rate are government priorities to ensure the Thai economy grows by 7% per year.

Anurat Khokasai, chief operations and marketing officer at the seafood firm Prantalay Marketing Co, called for urgent action from the government to curb the baht's strength.

Without immediate measures, Thailand's annual food exports of 970 billion baht will be in jeopardy, he said.

Of that total, shrimp exports make up 80 billion baht.

"Exports to Japan have dropped 25% in value due to the weakening yen," said Mr Anurat, adding that a lower shrimp supply due to early mortality syndrome has raised the cost by 40%.

"This is the big issue for the government and the Bank of Thailand. The industry itself does not have a problem competing with others in the region, but we're facing a war of exchange rates," he said.

The baht is now quoted at 29 to the greenback compared with 32 baht last year. It is 37-38 baht against the euro compared with 40 in 2012.

"If the government wants Thai exports to remain competitive, they'll have to intervene in the baht. Otherwise, export value will likely see a drastic impact," said Mr Anurat.

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Offline thaiga

Re: Baht breaks 29-per-dollar barrier
« Reply #7 on: April 10, 2013, 12:23:04 AM »
The baht jumped the most in 10 months, breaching 29 per dollar for the first time since 1997.


Baht is gold... or so it seemed Tuesday as the currency broke the barrier of 29-per US dollar briefly, for the first time since 1997.

Demand for the nation's bonds rose amid unprecedented monetary easing in Japan. Stocks dropped to a two-month low.

The currency jumped 1 per cent from its April 5 close to 29.02 against the greenback as of 4:51 p.m. in Bangkok after reaching 28.93 earlier, according to data compiled by Bloomberg. That's the biggest advance since June 4.

Tuesday's baht gains were "too fast" and the Bank of Thailand is ready to intervene if the currency's moves are not consistent with fundamentals, Governor Prasarn Trairatvorakul said. Capital controls are not being considered, he added.

Global funds bought $292 million more Thai government debt than they sold last week, adding to net purchases of $9.6 billion in the first quarter, official data show. That compares with $31 billion for the whole of 2012.

"With floods of cash in Japan where rates are so low, investors are seeking higher returns and in this region, Thailand looks good thanks to its stable economy and political situation," said Tsutomu Soma, manager of Rakuten Securities Inc's fixed-income business unit department in Tokyo. "And the weaker yen won't be harmful for Thailand as it doesn't compete with Japan, unlike South Korea or China."

The baht has strengthened 5.3 per cent this year versus the greenback, the biggest gain among Asia's 11 most-used currencies, according to data compiled by Bloomberg. It reached 28.93 earlier today, the strongest level since a devaluation in 1997 that sparked the Asian financial crisis.

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sicho

  • Guest
Re: Baht strongest in 2 months
« Reply #8 on: April 10, 2013, 11:43:14 AM »
Have you noticed that the tv Asian business programmes, such as on BBC and CNN, hardly ever mention Thailand, the country that aims to be the 'hub' of Asean?                                                                               
 

Offline thaiga

Re: Baht falls
« Reply #9 on: April 11, 2013, 01:44:10 PM »
Baht falls, bonds change little

Thailand's baht dropped for the first time in more than a week amid concern the Bank of Thailand will intervene to slow the pace of appreciation that may hurt exports. Government bonds were little changed.

The currency has advanced 5.2% this year, the best performance in Asia, and was beyond 29 per US dollar this week for the first time since 1997.

BoT Governor Prasarn Trairatvorakul said on Wednesday that Prime Minister Yingluck Shinawatra has voiced concerns about the strength of the baht and its impact on exporters. He said the central bank will closely monitor the currency's movement. The Bank of Japan last week announced it will buy 7.5 trillion yen ($75 billon) in bonds a month under its monetary easing programme.

"Amid continued appreciation pressure on the Asian currencies, the baht’s gains are stalled for now with some concerns about intervention," said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo. "With monetary easing by central banks in developed nations, funds are flowing into the bonds in the region where currency appreciation is expected."

The baht fell 0.2% to 29.07 per dollar as of 8.53am in Bangkok, according to data compiled by Bloomberg. It touched 28.88 on Wednesday, the strongest level since a devaluation in July 1997 that sparked the Asian financial crisis. One-month implied volatility for the baht, a measure of expected moves in the exchange rate used to price options, dropped four basis points, or 0.04 percentage point, to 5.29%.

Global funds bought $1.1 billion more Thai sovereign debt than they sold this month through yesterday, taking this year’s net purchases to $11 billion, according to Thai Bond Market Association data. That compares with $31 billion of inflows in the whole of 2012.

The yield on the 3.625% government bonds June 2023 was little changed at 3.44%, the lowest level since Nov 5, data compiled by Bloomberg show.

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Offline thaiga

Re: Baht Moving Beyond Fundamentals
« Reply #10 on: April 19, 2013, 07:24:21 PM »
Baht moving beyond fundamentals: BOT

BANGKOK: -- The Thai baht is advancing well above its fundamentals, conceded Bank of Thailand Governor Prasarn Trairatvorakul on Friday.

At 8.18am, the currency hit a new 16-year high at 28.71 per dollar, gaining 2.02 per cent from end-March, according to Bank of Thailand data. At one point, it touched 28.68. This indicates the 6 per cent increase from the end of last year.

Month to date, the currency also gained 6.40 per cent against Japanese yen, at 29.26 per 100 yen. It also appreciated by 0.17 per cent against euro to 27.478.

Prasarn said today that the currency is strengthening above the economic fundamentals.

He did not elaborate further or mention any measure the contain the appreciation.

Prasarn had a meeting with the prime minister and economic government units on April 18. He said that the agenda was mainly about the export target, not about the exchange rates.

the nation

It will hit the tourist areas with people who come here for a holiday and the ex-pat living off his pensions, finding their currency is no longer enough. most expats will stay and tourists will still come to Thailand but less Baht means less goods being bought.
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Offline thaiga

Re: Potential layoffs if Thai baht touches Bt27 / US dollar: Survey.
« Reply #11 on: April 23, 2013, 02:21:18 PM »
BANGKOK, April 23-A number of Thai entrepreneurs fear they may need to lay off employees if the baht strengthens to 27-27.90 against the US dollar, according to a survey by the University of the Thai Chamber of Commerce (UTCC).



UTCC Business Forecasting Centre director Thanawat Polvichai released the survey result from among entrepreneurs nationwide on possible negative impacts from the baht which is hovering around Bt28.80-29.10 against the greenback.
 
According to the survey, 38.1 per cent said the current rate is moderately appropriate, while one in three said the current rate is definitely not appropriate.
 
Moreover, 42.1 per cent of respondents said the current exchange rate undermined their businesses regarding competitiveness and exports.
 
Nearly one fourth -- 23.8 per cent -- said it could cause a drop in exports.
 
Most entrepreneurs surveyed said the proper currency exchange rate should remain around Bt30.48 per dollar. The strengthening of the baht to 29.18 is acceptable but if it rises further to 27-27.90, more than 12 per cent said they will have no choice but to lay off employees and 9.8 per cent said they have to close their businesses.
 
The government should intervene to prevent the baht from a rapid appreciation and manage the unit to stay between Bt29-30 per US dollar, according to those surveyed.
 
The Bank of Thailand has also been urged to cut money exchange fees and find sources to offer soft loans for help those affected, or the bank should cut interest rate and rein in foreign capital inflows. (MCOT online news)

More calls for action on Baht

BANGKOK: -- The Bank of Thailand is widely expected to take action soon to rein appreciation of the baht as its "excessive" gain is having a widespread negative impact on the export sector as well as the government's tax revenue.

Markets are braced for the action. Touching a new 16-year high yesterday with a 0.18 per cent rise from Friday's closing to 25.58 per US dollar, the baht later lost 0.2 per cent to 28.74 at 3.12pm. So far this month, the baht has gained more than 2 per cent against the dollar and 8 per cent over the Japanese yen, making Thai goods more expensive in the countries where trade is denominated in the two currencies.

Pakorn Peetathawatchai, Stock Exchange of Thailand’s executive vice-president, yesterday recommended investors to closely monitor exchange rates, saying that there could be capital controls due to the baht's excessive gain.

"It remains to be seen how the authorities will act to control the hot money. We can't afford to take no action. We have never witnessed the baht appreciate this quickly, or the sharp rise in the stock market like this," Pakorn said.

In the first quarter, the SET index gained 12.15 per cent, making it the world's best-performing market after Vietnam (18.7 per cent), the Philippines (17.1 per cent), Laos (15.9 per cent) and Indonesia (14.5 per cent). Overseas investors bought US$2 billion more Thai sovereign debt than they sold this month through to April 19, adding to net purchases of $9.8 billion in the first quarter.

To stem the baht's appreciation, former Bank of Thailand chairman MR Chatu Mongol Sonakul urged the central bank to buy more dollars, rather than cut the policy rate.

Speaking on the sidelines of a seminar yesterday, Chatu Mongol said that it is necessary to take care of the export sector, which is suffering acutely. He said he understood that financial stability is the BOT's priority, but it should also pay attention to economic progress.

He noted that heavier sterilisation - the buying of US dollars to depress the baht's price - would boost the BOT's accounting loss, but said that's just a figure. China's central bank has also accumulated more than $3 trillion in foreign currencies to stabilise the yuan. With reserves of more than $200 million - 60 per cent of gross national product (GNP), the BOT has the capacity to strengthen its sterilisation efforts, Chatu Mongol said.

He strongly opposed a cut in the policy rate, as suggested by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong and exporters, saying that could spur consumption and hence inflation.

"It's better for the central bank to shoulder the sterilisation cost than to cut the rate, as higher inflation would affect the entire country," he said.

Foreseeing continued inflows of foreign capital, he noted that it was time to allocate some foreign reserves to finance a sovereign wealth fund, as the fund's overseas investment would counter capital inflows.

Hurting revenues

While saying that the baht's rise is too fast, Paiboon Kittisrikangwan, an assistant governor of the Bank of Thailand, was adamant that BOT had policy options in hand. Yet, for now, it wants to observe market reactions and assess the necessity of measures.

On Friday, the Commerce Ministry, which still maintains this year's export target at 8 to 9 per cent, will hold a discussion with exporters. The Thai Frozen Foods Association earlier estimated that its producers will lose Bt20 billion for every Bt1 increase in the baht against the dollar. The association is fretting that it may fail to achieve its revenue target of Bt1 trillion this year.

The strong baht is also now expected to hurt the government's revenue projections.

Wanee Thasanamontien, principal adviser on tax strategies, said that export-oriented companies in particular will see a sharp decline in revenue when dollar-denominated income is converted to baht. With lower profits, the companies will also pay lower income taxes.

Meanwhile, the stronger baht would make dollar-denominated imports cheaper. The Revenue Department, which collects taxes according to CIF (cost, insurance and freight) rates, will then collect a smaller amount of tax.

This will further lessen the department's revenue, as the corporate income tax cut to 20 per cent this year would slash annual revenue by another Bt80 billion. Wanee estimated that if corporate earnings show annualised growth by 25 per cent or more, this would compensate for the missing revenue. The department aims to collect Bt1.77 trillion this fiscal year.

the nation
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Offline thaiga

Re: Baht rises again Thursday
« Reply #12 on: April 25, 2013, 12:38:01 PM »
The baht ended three days of losses as international investors increased holdings of Thailand's debt amidst optimism the economy is improving.

The baht rose 0.1 per cent to 28.90 per dollar as of 9:41 am Thursday in Bangkok after reaching a one-week low of 28.99 earlier in the day, according to data compiled by Bloomberg.



The currency touched 28.56 on April 22 and April 19, the strongest level since a devaluation in July 1997 that sparked the Asian financial crisis.

Five-year government bonds rose. Global funds bought $2.2 billion more sovereign debt than they sold this month through Wednesday, taking this year's net purchases to $12 billion, Thai Bond Market Association data show.

The Bank of Thailand raised its 2013 growth forecast on April 12 to 5.1 per cent from its January estimate of 4.9 per cent.

The central bank is concerned about the baht's advance to a 16-year high earlier this month, assistant governor Chantavarn Sucharitakul said Wednesday.

"Inflows in bonds continue and the baht is still under pressure to appreciate," said Kozo Hasegawa, a currency trader at Sumitomo Mitsui Banking Corp in Bangkok. "But there is concern about intervention and also some demand to buy dollars, slowing movements in the baht for now."

bangkokpost
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Offline thaiga

Re: Urgent task force to tackle baht volatility, declining exports
« Reply #13 on: April 26, 2013, 08:35:53 PM »
BANGKOK, April 26 –Thai industrialists and business operators met with Commerce Minister Boonsong Teriyapirom today to discuss the overwhelming detrimental impact of the currency exchange rate on Thai exports since early this year.

The minister said the joint public and private sector committee will successively follow up development on the export landscape and meet regularly every quarter, or every month during the “unusual period,” until the Thai currency situation returns to normal.

Today’s meeting concluded that the country’s 8-9 per cent export target would remain unchanged, hoping that the baht will gradually slide down soon.

Payungsak Chatsuthipol, Federation of Thai Industries (FTI) chairman, said the private sector asked the Commerce Ministry to boost border trade which is currently at a combined value of Bt1 trillion or 10 per cent of the gross domestic product (GDP) to substitute the losing export revenue from the European and US markets.

The FTI, in a meeting with the central bank next Tuesday, will propose a five-point measure to deal with the strengthening baht such as a one-per cent reduction of the policy interest rate and control of foreign capital inflow, said Mr Payungsak.

He said Thai exporters have been severely battered by the strong baht, with exports falling by 40 per cent for jewellery and 30 per cent for industrial products while textiles, food and auto industries may give reduced purchase orders in the future.

Pornsilp Patcharintanakul of the Thai Chamber of Commerce called on the BoT to reduce the policy interest rate by 0.25 per cent as a signal to slow down foreign capital inflow.

The government should also levy tax on incoming capital – a measure already adopted by Malaysia, he said. (MCOT online news)

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Offline coolkorat

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Re: Baht strongest in 2 months
« Reply #14 on: April 26, 2013, 08:58:24 PM »
How long will large scale manufacturers patiently sit-out an over-strong baht? Nikon, Honda etc. suffered in the floods. Now they suffer wage hikes (with the inevitable knock-on from the minimum wage increase) and a strong currency.

Any significant manufacturer must be looking carefully at neighbouring countries now. The Thai government needs to act quickly before an exodus begins. Otherwise they will be forced to give incentives to encourage these companies to remain.
 

Offline thaiga

Re: Surging baht wreaks havoc on Thai rice exports
« Reply #15 on: May 01, 2013, 04:04:56 PM »
BANGKOK, May 1 – Thailand’s export target growth of 8-9 per cent may be reduced due to the volatile Thai currency, according to Commerce Minister Boonsong Teriyapirom.

He repeated his call for the Bank of Thailand (BoT) to provide measures to tackle the appreciating baht, warning that the country’s overall exports will be adversely affected if action is not taken.

Mr Boonsong is scheduled to meet with Thai commercial envoys worldwide late this month to evaluate the situation.

He said the surging baht has also affected the government’s release of a new lot of rice under government-to-government deals as it is difficult to fix the prices.

Thailand may have to sell rice at lower prices and the country may have to suffer unnecessary losses in releasing new stocks, he said.

He stood firm that the government did not approve the release of two million tonnes of rice while the new pledging scheme for the harvest in 2013/2014 has yet to be worked out, probably not until October. (MCOT online news)
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Offline thaiga

Re: Further gains expected in wake of ECB rate cut
« Reply #16 on: May 05, 2013, 03:36:51 PM »
PM promises to act quickly on baht surge

Prime Minister Yingluck Shinawatra has reiterated her concerns about the surging baht saying that the government will work quickly to ease the impacts of the currency's rise on the private sector.

The premier was responding to Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol, who met her at Government House yesterday. He asked Ms Yingluck to act urgently to deal with the baht's appreciation.

She said the government will assign agencies to consider the FTI's requests, while the government has implemented various policies to stabilise the currency including speeding up investment, promoting baht borrowing, and setting a requirement for state enterprises to pay foreign debts ahead of schedule.

Mr Payungsak called on the government to implement measures to deal with the rising baht urgently, not to wait for the meeting of the Monetary Policy Committee (MPC) on May 29.

He said the baht is expected to strengthen further next week, after the European Central Bank slashed its benchmark interest rate by 25 basis points to an all-time low of 0.5% on Thursday.

He said the strong baht could destroy the supply chain of domestic industry because manufacturers have already turned to importing raw materials and parts instead of using local supplies.

"The FTI doesn't want the government to make the baht depreciate, but we want its value to be in line with the levels of our trading competitors in the region," Mr Payungsak said.

"We are very worried the strong baht will continue and adversely affect exporters in the second and third quarter." He said many exporters had delayed receiving orders from customers due to concerns over further baht appreciation.

Export growth this year will fall to 4-5% from the 8-9% target, Mr Payungsak said, proposing the MPC cut its policy interest rate by 1% point from the current 2.75%.

The baht has appreciated by 6.28% since early this year, compared with 0.27% for the Malaysian ringgit and 0.69% for the Indonesian rupiah, while the Japanese yen has depreciated 15%, the South Korean won weakened by 5%, and the Vietnamese dong appreciated by 0.7%, the FTI chairman said.

Mr Payungsak said the FTI will meet in the next week or two to discuss what action to take if the government fails to draw up any measures.

Democrat MP and former finance minister Korn Chatikavanij said the BoT should explain the heavy losses on its balance sheet to prevent the information being "twisted" to discredit the central bank governor.

On his Facebook page, Mr Korn said the government was out to attack the BoT by citing the "losses" from holding the dollars it bought which are now worth less against the strong baht than when they were purchased. The BoT bought the dollars to manage the baht value.

Mr Korn added that Veerathai Santiprabhob, a former chief strategy officer at the Stock Exchange of Thailand, has said the losses, put at 800 billion baht, account for an almost negligible fraction of the national budget.

Opposition leader Abhisit Vejjajiva said yesterday excuses were being made to dismiss the central bank governor.

source
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Offline thaiga

Re: Baht rises on lack of BoT action
« Reply #17 on: May 13, 2013, 03:05:50 PM »
The baht strengthened Monday, snapping a two-day slide, as the governor of the Bank of Thailand said steps to slow the currency's gains were not discussed at a meeting with government officials.

Governor Prasarn Trairatvorakul, Bank of Thailand monetary policy committee members and representatives of the government and private sector were at the meeting Monday. Finance Minister Kittiratt Na-Ranong, who has repeatedly called for a cut in borrowing costs to stem fund inflows, attended as well.

Governor Prasarn said the central bank's rate-setting committee will meet on May 29 as scheduled, ruling out a special session.

No one put pressure on the central bank to move on the policy rate at today's meeting, he told reporters in Bangkok.

The baht reached a 16-year high last month as monetary easing in developed nations increased the flow of funds to emerging markets.

"Concerns that they will announce something from today's meeting, which has put downward pressure on the baht since late last week, eased just for now, helping it rebound," said Toyomu Chihaya, assistant general manager of the Bangkok treasury department at Mizuho Corporate Bank Ltd.

"It doesn't mean the baht will continue to advance from here. There remains some concern about measures to stem the appreciation."

The currency climbed 0.3 per cent to 29.68 per dollar as of 1:54pm in Bangkok. It had slipped 1.4 per cent in the two days through May 10, according to data compiled by Bloomberg.

The baht touched a two-month low of 29.85 earlier.

The baht is still up 3 per cent this year, making it the best performer among Asia's 11 most-traded currencies. It reached 28.56 on April 22 and April 19, the strongest level since July 1997, the start of a recession.

One-month implied volatility, a measure of expected moves in the exchange rate used to price options, slumped 13 basis points, or 0.13 percentage point, to 6.31 per cent.

Narongchai Akrasanee, a member of the monetary policy committee, said on Monday taht four measures proposed to help stem capital inflows are sufficient. Finance Minister Kittiratt said the measures should be considered "carefully" and that lowering the key rate is just one option.

Thailand's benchmark interest rate of 2.75 per cent compares with a maximum of 0.25 per cent in the U.S. and 0.1 per cent in Japan. It is lower than Indonesia's 5.75 per cent, the Philippines' 3.5 per cent and Malaysia's 3 per cent.

The yield on the 3.625 per cent government bonds due June 2023 rose two basis points to 3.36 per cent, data compiled by Bloomberg show. The rate reached 3.33 per cent on May 10, the lowest level since February 2012.

bangkokpost


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Offline thaiga

Re: Rising baht could trigger crisis
« Reply #18 on: May 18, 2013, 01:48:55 PM »
Rising baht could trigger crisis: Thaksin

BANGKOK: -- Former prime minister Thaksin Shinawatra warned yesterday that a lack of cooperation between the central bank and the Finance Ministry in reining in the strengthening baht could lead to a new financial crisis for Thailand.

Thaksin said the current economic indexes were worrying. "I like looking at different indexes and often get alarmed," he said.

"During the crisis, only the paranoid survived," he added, quoting Andrew Grove, former chief executive of computer-chip maker Intel.

The latest message on his Facebook account (www.facebook.com/thaksinofficial) posted yesterday afternoon said that Japan was able to achieve a GDP growth of 3.5 per cent in the first quarter because the Bank of Japan works directly with the Japanese government. He said Thailand's problem was that the Bank of Thailand was independent, and he accused the central bank of refusing to listen to the government.

"They [the Japanese] have a holistic approach to dealing with their economic problems. Their monetary policy and their fiscal policy are united," Thaksin said.

He also noted that the Japanese government made the yen 20-per-cent weaker and printed more banknotes under a quantitative easing policy aimed at revitalising the economy.

Thaksin, who is believed to be pulling the strings behind the ruling Pheu Thai Party, said a law issued after the 2006 coup made the Thai central bank independent from the government. "They do not listen to the government. This is worrying because both sides use their own policies and believe in their own," he said.

The ex-leader went on to say that a capital influx into Thailand was worrying and could lead to a bubble in asset pricing.

"Will there be any joint measures between the Finance Ministry and the Bank of Thailand? I am worried. We may not have to worry, if we look at the future in the short term. But if we look at the next few years, there is cause for alarm," he said.

Thaksin said that as Thailand's GDP relies heavily on exports, an increase in baht's value of an additional Bt1 per US dollar would result in a loss of 0.7 per cent in GDP.

He said that when serving as foreign minister between 1994 and 1995, he had cautioned the central bank and the Finance Ministry "every time" he attended meetings of the bank's Exchange Equalisation Fund, but his warnings were not heeded and the financial crisis of 1997 ensued.

the nation
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Offline Johnnie F.

Re: Baht strongest in 2 months
« Reply #19 on: May 19, 2013, 07:55:32 AM »
Korn rejects Thaksin's claim on BOT

Former finance minister Korn Chatikavanij yesterday disputed ex-premier Thaksin Shinawatra's claim that an independent central bank was Thailand's problem in the face of a strengthening baht.
Korn said he suspected that Thaksin was actually dissatisfied that the law prevents the government from dismissing the Bank of Thailand (BOT) governor without sufficient reasons.

"What upsets Thaksin most is that the Bank of Thailand governor cannot be removed as easily as other bureaucrats," he said in a Facebook message.

BOT governor Prasarn Trairatvorakul has resisted pressure from the government, and particularly from Finance Minister Kittiratt Na-Ranong, to have the policy interest rate reduced in order to weaken the strong baht - a measure expected to curb the currency's appreciation, which is hurting the country's exports.

Thaksin said in a Facebook message on Friday that Japan was able to achieve gross domestic product (GDP) growth of 3.5 per cent in the first quarter because the Bank of Japan works directly with the Japanese government. He said Thailand's problem was that the Bank of Thailand was independent, and he accused the central bank of refusing to listen to the government.

Korn said yesterday that although the Bank of Japan has less independence than the European central banks, it is in fact "not working directly under the Japanese government".

He also said that Thailand and Japan have different economic situations - for example the Japanese have massive savings - so different measures should be taken for the two countries. He did not think a similar interest rate cut to the one adopted in Japan would work for the Thai economy.

"Thaksin's problem is that he does not have a sufficient understanding of economics. It is untrue that the Thai gross domestic product depends mostly on exports. In fact, about 52 per cent of the GDP comes from domestic consumption," said Korn, who is a deputy leader of the opposition Democrat Party.

Meanwhile, Thaksin's legal adviser and spokesman Noppadon Pattama said yesterday that the ex-leader made his comments honestly, with no intention of attempting to interfere with the central bank.

The Nation
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Offline pop401k

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Re: Baht strongest in 2 months
« Reply #20 on: May 19, 2013, 04:18:11 PM »
Hmmm...  If 48% of Thailand's GDP is derived from exports, I'd say that it's economy is dependent upon them.  Try reducing GDP "national income" by nearly half and see what happens to the economy.  I think Thaksin has a better grasp of economics than the leader of the opposition.  Just sayin.
 

Offline thaiga

Re: Baht strongest in 2 months
« Reply #21 on: May 19, 2013, 04:42:46 PM »
I think your right.

 the writing is on the wall :-[
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Offline thaiga

Re: 2013 growth forecast revised downward, export growth grim
« Reply #22 on: May 20, 2013, 03:06:35 PM »
BANGKOK, May 20 –
Thailand’s gross domestic product (GDP) forecast is lowered from 4.5-5.5 per cent to 4.2-5.2 per cent due to the disappointing Q1 economic growth of 5.3 per cent, below the previously forecast 6-7 per cent, a senior official said today.

Arkhom Termpittayapaisith, secretary general of the Office of the Economic and Social Development Board (NESDB), said Thailand's Q1 economic expansion at 5.3 per cent this year is far below last year’s Q4 growth of 19.1 per cent.

Household spending increased by 4.2 per cent, a sharp drop from last year’s Q4 at 12.4 per cent while last year’s Q4 investment at 22.9 per cent dropped to only 6 per cent in Q1.

The Q1 export volume in dollars increased 4.5 per cent, almost half below the government’s 9 per cent target while the NESDB earlier forecast an 11 per cent growth, he said.

The export volume in baht increased by only 0.5 per cent given the surging Thai currency which has resulted in a Bt181 billion loss, he said, predicting Thailand’s export value to grow at only 7.6 per cent this year, much below the original 11 per cent forecast.

He called on the Bank of Thailand (BoT) to give more emphasis on stabilising the baht than concentrating on inflation.

Q1 inflation remained at 3.1 per cent and it should be around 2.3-3.3 per cent this year.

Mr Arkhom said the 'currency war' and unusual inflows of foreign capital are immediate problems that should be urgently addressed by the central bank, referring to the foreign capital inflow of US$4.5 billion in the past three quarters.

The capital inflow in Q1 was US$4.775 billion, higher than the annual average value at US$2.2 billion.

He said a reduced policy interest rate would be the best solution to deter foreign capital inflows and that the BoT should enforce appropriate measures to create awareness among foreign investors that Thailand is not a haven for baht speculation.

A predicted global economic expansion of only 3.6 per cent and the continued appreciation of the baht are volatile factors for Thailand’s exports, he said. (MCOT online news)
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Offline thaiga

Re: Strong baht to cause veggie and fruit export to drop 20%
« Reply #23 on: May 20, 2013, 08:56:54 PM »
NESDB: Strong baht to cause veggie and fruit export to drop 20%

BANGKOK, 20 May 2013 (NNT) –
The appreciation of theThai currency is expected to cause vegetable and fruit export to drop around 20 percent. Exporters, meanwhile, are calling the government to intervene in the baht situation.

The Thai Food Processors' Association has disclosed that its members are having difficulties exporting vegetable and fruit, thanks to the sluggish global economy and the fluctuation of the Thai currency. The association is, therefore, expecting to see a 20 percent drop in fruit and vegetable export. It is also urging all economy-related agencies to step up assistance measures aimed at solving the problems.

The Association further revealed that there has been a lot of capital influx into Thailand lately, which, he claimed, does not bode well for the country as a whole.

The Association has also anticipated a slight drop in vegetable and fruit production this year, reasoning that a number of farmers have switched to growing other crops like sugar cane, cassava, palm, and rubber, given these products generate higher income for the farmers.

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Offline thaiga

Re: Baht falls toward 4-month low
« Reply #24 on: May 28, 2013, 01:27:57 PM »
Thailand's baht dropped toward a four-month low before United States data forecast to show an improvement in consumer confidence amid speculation the Federal Reserve will reduce stimulus that has boosted demand for emerging-market assets.

The currency was poised for a second monthly decline as the Bank of Thailand prepares to meet on Wednesday, with 13 of 22 economists surveyed by Bloomberg predicting a 25 basis point cut in the one-day bond repurchase rate to 2.5%. Eight see no change and one a half percentage point reduction. Fed Chairman Ben S Bernanke said last week the central bank may slow the pace of quantitative easing.

"The main theme is still concern the Fed will reduce quantitative easing, which is causing dollar strength," said Disawat Tiaowvanich, a foreign-exchange trader at Bangkok Bank Pcl. "Investors and traders have been pricing in a rate cut in Thailand, but with the strong dollar trend, they don't have to bring a big cut."

The baht dropped 0.2% to 29.92 per dollar as of 9.16am in Bangkok, according to data compiled by Bloomberg. The currency, which fell 2% this month, touched 30.10 on May 23, the weakest level since Jan 15.

The Dollar Index, which tracks the greenback against six major counterparts, rose 0.2% to 83.865. It reached the highest in almost three years on May 23. The Conference Board's index of consumer sentiment probably climbed to 71 in May, a level last reached in November, according to the median estimate in a Bloomberg survey.

Yield Forecasts

Bank of Thailand governor Prasarn Trairatvorakul said May 21 that monetary policy could be eased if the economy slows. The National Economic and Social Development Board scaled back its forecast for 2013 growth to as much as 5.2% on May 20 from 5.5 percent. Gross domestic product increased 5.3% in the first quarter, compared with 19.1% in the previous three months, official data showed May 20.

Still, the baht remains Asia's best-performing currency this year with a gain of 2.2%. It reached 28.56 on April 22 and April 19, the strongest level since July 1997.

One-month implied volatility, a measure of expected moves in the exchange rate used to price options, fell two basis points, or 0.02 percentage point, to 6.64% on Tuesday.

Thai bonds will benefit from a cut in interest rates, Tim Condon, head of Asian research at ING Groep NV, wrote in a research note to clients today. He lowered his forecast for the 10-year yield to 3.3% from 3.8%.

The yield on the 3.625% debt due June 2023 rose one basis point to 3.39%, data compiled by Bloomberg show.

bangkokpost
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Offline coolkorat

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Re: Baht strongest in 2 months
« Reply #25 on: May 28, 2013, 07:57:15 PM »
From a GBP perspective:

The Baht began strengthening roughly July 2008, from a high of 80/£1 falling to less than 50/£1 by April 2009. From Feb. 2010, the rate has held steady at approx. 50/£1. January this year has seen GBP decline rapidly, now bouncing along at 45/£1.

If we lived in a free-trade environment this would be fine: surely the UK should be selling more to Thailand. But given that Thailand has import restrictions, this does not apply - cars are a major UK export, but not to Thailand.....

I sincerely hope this has a damaging impact on Thai tourism AND Thai manufacturing. You can be sure any international manufacturer will be putting their new plant into Laos, Burma or Vietnam well before Thailand. If there were more unique domestic manufacturers perhaps there would be more pressure for the BOT to be controlling the surging Baht......
 

Offline thaiga

Re: Industrialist hails govt measures to tackle surging baht
« Reply #26 on: May 29, 2013, 03:32:16 PM »
BANGKOK, May 29
The government’s newest financial and economic package particularly related to the movement of the Thai baht, will be a blessing to Thailand’s exports, a leading industrialist said today.

Payungsak Chatsuthipol, chairman of the Federation of Thai Industries (FTI), predicted a positive result of Thai exports in three months and said cooperation among state agencies has boosted investor sentiment.

He complimented the Finance Ministry for its decision to control foreign capital outflows – a move which he believed will deter speculation in the money market.

When the baht moves in accord with the currencies of Thailand’s trading partners, exports will surge, he said.

He expressed optimism that the Monetary Policy Committee (MPC) which meets today will come up with a decision in favour of the country’s economic stability. (MCOT online news)

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Offline thaiga

Re: Baht strongest in 2 months
« Reply #27 on: June 05, 2013, 12:31:57 PM »
From a GBP perspective:

The Baht began strengthening roughly July 2008, from a high of 80/£1 falling to less than 50/£1 by April 2009. From Feb. 2010, the rate has held steady at approx. 50/£1. January this year has seen GBP decline rapidly, now bouncing along at 45/£1.

If we lived in a free-trade environment this would be fine: surely the UK should be selling more to Thailand. But given that Thailand has import restrictions, this does not apply - cars are a major UK export, but not to Thailand.....

I sincerely hope this has a damaging impact on Thai tourism AND Thai manufacturing. You can be sure any international manufacturer will be putting their new plant into Laos, Burma or Vietnam well before Thailand. If there were more unique domestic manufacturers perhaps there would be more pressure for the BOT to be controlling the surging Baht......
Looks like things are on the move now GBP United Kingdom 45.99 EUR Euro Zone 39.35 bangkokbank

Thailand’s baht fell to a five-month low after foreign funds pulled money from local assets amid speculation the government will take steps to control fund flows and the Federal Reserve will reduce its stimulus.

http://www.bloomberg.com/news/2013-06-05/baht-falls-to-five-month-low-as-capital-control-concern-lingers.html

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Offline thaiga

Re: Baht falls
« Reply #28 on: June 12, 2013, 01:13:58 PM »
Baht falls to nine-month low

Thailand's baht weakened beyond 31 per US dollar for the first time since September as international investors cut holdings of the country's assets amid speculation the US Federal Reserve will trim its monetary stimulus.

The MSCI Asia Pacific Index of shares fell 0.7% on Wednesday and has lost 8.9% since May 22, when Fed Chairman Ben S Bernanke said policy makers could reduce the $85 billion a month in bond purchases should there be a sustained improvement in the jobs market. Global funds sold $921 million more Thai stocks than they bought this month through Tuesday and pulled a net $158 million from bonds, official data show.

"Funds are leaving Thailand and that is weighing on the baht," said Kozo Hasegawa, a Bangkok-based foreign-exchange trader at Sumitomo Mitsui Banking Corp. "Fund movements by foreign investors are a major driver for the baht, while both importers and exporters have taken a wait-and-see attitude."

The baht fell 0.3% to 31.08 per dollar as of 9.25am in Bangkok and touched 31.10 earlier, the weakest level since September 2011, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, climbed 22 basis points, or 0.22 percentage point, to 7.32%. The gauge last reached that level in December 2011.

The yield on the 3.625% government bonds due June 2023 rose one basis point to 3.99%, the highest level since September 2011, data compiled by Bloomberg showed.

bangkokpost
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Offline Roger

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Re: Baht strongest in 2 months
« Reply #29 on: June 12, 2013, 05:10:31 PM »
The title of the thread is a bit confusing now.....  the Baht is weakest now in 2 months ?
Thaiga, the £ on my screen is 48.4 Baht (interbank rate) - whoopee. A big improvement in the last week or two.
Should get 47.5 upwards on that.
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