Baht soars against greenback | Bangkok Post: news

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Baht soars against greenback

Concerns mount over export-competitiveness

The baht is continuing to gain ground against the US dollar, hitting a two-year high on continued foreign inflows into the Thai financial markets.

Prime Minister Abhisit Vejjajiva is due to meet with Finance Minister Korn Chatikavanij, central bank governor Tarisa Watanagase and other ministers today to discuss the rise in the currency.

The baht, which traded at 31.1 to the US dollar yesterday, has gained more than 6% against the greenback in the year to date, prompting concerns among business leaders and policy makers about whether the country would lose competitiveness in global export markets.

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  • Error

    Discussion 20 : 02/09/2010 at 11:07 PM20

    I agree with discussion 18.
    Although this wont make any mayor difference for people going on a holiday for a couple of weeks. I do hope that less spending from foreigners will help Thai people to understand that Europe and the USA isn't such a luxury heaven, and that westerner also have to work for they money.

  • truth

    Discussion 19 : 02/09/2010 at 05:47 PM19

    The tourism is down by 30-50%.

    The corruption is worse then ever and investor´s are leaving the country because it´s a hopeless place to do business and invest and nobody new are arriving doing business.

    Thailand´s future looks very bad compared to other Asian countries and that is a shame.

    The political climate is explosive and greed and anger dominate the current value system.

    The economy and the bath is based on an illusion and another huge crash is in the maps.

    Thailand has lost it´s charm as an innocent place to visit/travel and as a place to do business.

  • Michael

    Discussion 18 : 02/09/2010 at 05:36 PM18

    As Thai baht getting stronger by day, Farangs no longer can show off and boost around in Thailand that they are rich westerner. Those with Thai family are finding it hard to sustain especially those who depend on their pension fund. The day have arrived. Time to stop show off and boost around.

  • Ken In USA

    Discussion 17 : 02/09/2010 at 05:23 PM17

    The markets are behaving erratically. In the New York Times today (nyt.com, business section ) Monetary fund warns G-7 About Debt Levels. Look for the Big Drop. It's coming, along with that the currency values will also drop.

  • Error

    Discussion 16 : 02/09/2010 at 04:30 PM16

    I agree with discussion 6.
    Here you have two mayor sources of income for Thailand, tourism and rice. With neighboring countries booming and opening competition on both areas, the future seems unsure for Thailand as the "one and alone" player in this game. Being the best in class isn't something that is automatically given anymore.
    And the monopoly Thailand has achieved in the region during the last 40 years will require new ways of conducting business to endure . So my impression is that a development of a strong THB will tend to help Thailand's neighbors more then the Thais. Although i have seen the THB fluctuate the last couple of years, so i am not painting everything totally black.
    As for me, if the THB remains strong. Im considering selling my houses and move to Laos, Cambodia or Vietnam. Its basically the same, but little bit different. And considering all the other resent development making it hard for westerners to stay, the decision should be an easy one.

    See you there.

  • Geoff

    Discussion 15 : 02/09/2010 at 03:36 PM15

    Re #11
    It was Chavalit (PM) and Toxsin (Finance Minister) who devalued the baht by 50% overnight after promising it would never happen. At a stroke, they halved the real value of all Thai people's assets and savings - except their own of course. The polite term for their gains is called insider trading.

  • pretty steve

    Discussion 14 : 02/09/2010 at 03:19 PM14

    What's amazing is that the cost of imported goods here continue going up. Has anybody noticed the prices of certain imported food items lately? Someone is making a killing here overcharging and increasing the price when it should be going DOWN.
    So this poppycock about imports being cheaper may help companies buying equipment and raw materials, but an invisible hand is keeping it prices from going down on consumer goods. They know they can charge more and shaft us consumers, standard story here.

  • Nhat Dinh

    Discussion 13 : 02/09/2010 at 10:50 AM13

    Probably recent tourist inflow to Vietnam is thanks to weaker Vietnamese dongs. However, the inflation makes life miserable for millions of Vietnamese people. Would Thai people like 20% annual inflation and pay ten thousand dongs for a Coke?

  • Ralph Goldsen

    Discussion 12 : 02/09/2010 at 10:30 AM12

    Speaking as an American who used to visit Thailand frequently, this makes a difference to my travel plans. I'm happy for Thai people that the Thai economy is doing well compared to ours, but I miss Bangkok and Krabi and Udon

  • Bill W

    Discussion 11 : 02/09/2010 at 10:20 AM11

    I agree with Discussion #2. The baht has gone and has gone down and no change in the country that is perceptible...except the rich get richer and the poor get poorer. The Central BAnk needs to step in and help this situation before another bubble becomes ready to burst!

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