FTI wants action on strong baht

Published: 19 Jan 2013 at 18.08
Online news:

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%.

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DonAleman
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Discussion 5 : 20 Jan 2013 at 10.265
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RE Dis #2, I,too, after 8 years, am in the slowly, but surely sinking ex pat financial boat so, I've had to restrict,reduce,stop "Tipping", walk more than ride, cut coupons, seek out "2 for ones ",cut my own hair,call on, ( with modest success), various suppliers to reduce prices, make eating out a luxury for very special occasions,stop alcohol, etc., etc.I survive but, many small businesses, the other side of ex pat "budgeting" may not ! The Thai fanmily I helped has already seen some effect which, if the inflated, inappropriate rise of the Baht value continues, is guaranteed to worsen.
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boons
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Discussion 4 : 20 Jan 2013 at 06.464
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D3: The Thai economy is a basket case. The currency is moving north on hot money inflows in desperate search of yield. To say that the economy is strong however is a serious stretch, Thailand is an 80% export economy with rising wages, and is part of a trade federation with lower wages in every neighboring nation. World consumption is plunging and China has a massive overhang in productive capacity. Thailand's populist PM has launched unsustainable "feel good" measures one after another. Thailand's blissful economic boom will be short lived at best. Watch for exports to plunge and unemployment to surge as manufacturers jump ship.
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Dingo69
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Discussion 3 : 19 Jan 2013 at 21.463
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Sorry to the previous posters re: tourists or expats (I'm one).
The baht is not so much appreciating, as rather the US dollar is depreciating, along with the Japanese yen.
Gov'ts can bankrupt themselves in short order by trying to control their currency's value vis a vis others....
The Thai economy is a strong one, with very low unemployment, export growth, and a strong stock and bond market. It is no surprise that there is a flow of money into Thailand in these circumstances, which bids up the value of the THB.
The price of imported goods such as oil goes down, as the THB appreciates.
Get used to it, there will be more to come...;)
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flpatbkk
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Discussion 2 : 19 Jan 2013 at 19.262
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While everyone thinks that all "farangs" are just rolling in dough there are many of us on fixed income either from pension funds or US Social Security. When I came her 5 years ago the baht was trading at around 40/USD. Today it is at 30 +/- projected to hit 29 this year. I've received two very small increases in my social security payment and have effectively lost almost 28% of my buying power requiring me to cut back drastically on extras and concentrate on basic living expenses. In fact if it weren't for the excellent and affordable medical care here Thailand would not be a first choice if I was retiring today.
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upena
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Discussion 1 : 19 Jan 2013 at 18.541
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And, the impact on tourists coming to Thailand is?
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FTI wants action on strong baht | Bangkok Post: business