BoT says not worried by strong baht

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BoT not worried by strong baht

Published: 13 Mar 2013 at 11.57
Online news: Local News

The continuing strengthening of the baht, which touched a 19-month high at 29.57 baht to the US dollar on Tuesday, was not a cause for concern, Bank of Thailand (BoT) governor Prasarn Trairatvorakul said on Wednesday.

This was caused by foreign direct investment inflow on the back of Thailand's continuing economic expansion and on reports that the country's credit rating had been raised, Mr Prasarn said. Fitch Ratings raised its assessment on Thailand by one level to BBB+ last week, citing a resilient economy and a more stable political environment.

He said the central bank already had reported the baht's appreciation to the BoT's Monetary Policy Committee and that there was no need to call an urgent meeting on this matter.

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tomo
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Discussion 11 : 14 Mar 2013 at 02.5411
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You might not be worried but for tourists on the pound or euro the exchange is terrible.And as Thailands exports have now been effected then you must think twice.You are kidding yourself if you think Tourist numbers are up.They are merley passing through the airport not staying in Thailand.Its good for Thailand to buy your imports and pay back your loans but Thailand is a export and Tourism country.Therefore Devalue your Baht.43baht to 1 pound.And the Euro and Dollar are down.Wake up BOT.
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boons
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Discussion 10 : 13 Mar 2013 at 20.1910
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Pure silliness. Of course the baht is rising because of hot money inflows and on the back of the weakening dollar and euro. But that doesn't mean that the high baht isn't dangerous for Thailand. Thailand is an EXPORT economy in a world of collapsing consumer demand and plunging currency values. Good luck with the high baht and high labor prices Thailand.
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bkposter
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Discussion 9 : 13 Mar 2013 at 19.449
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RE: D1 maybe you did not notice it but this was the biggest tourist year ever in the history of the country. They buy Baht too. The credit rating for the country was also raised recently.And car exports are up.
But Worzel in D9 has hit on the main reason for the value of the Baht rising against other major currencies.
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Worzel
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Discussion 8 : 13 Mar 2013 at 17.558
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The US is printing billions of unbacked dollars every week. The Baht therefore increases in value due to its relative scarcity vs the worlds reserve currency and 29 other international currencies that are also just printing.

We are mere observers in all this at present.
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NoodlesPhD
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Discussion 7 : 13 Mar 2013 at 17.277
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According to a Bloomberg article on March 8 foreign investors were heading for the exit as Thai shares are now considered expensive compared to other emerging markets. International money managers sold a net $583 million (USD) of the nation’s shares, the biggest outflow among 10 Asian markets tracked by Bloomberg. BOT response.."not worried"
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NoodlesPhD
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Discussion 6 : 13 Mar 2013 at 17.166
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Classic head in the sand economics… China, Japan, ECU, USA and others all adjusting their currency values to meet growth objectives…but BOT is not worried. Right or wrong, in the current economic gamesmanship happening around the globe the country with the strongest currency loses.
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onlyasking
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Discussion 5 : 13 Mar 2013 at 17.125
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People have short memories. In March 2009 the Baht was 36 to the $ and then went down to B 29.49 in Novembver 2010. Afterwards it went up and down. The B 29 to the $ is thus nothing new and everyone that had good businesses survived and the tourist still came for visits.
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jielus
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Discussion 4 : 13 Mar 2013 at 16.184
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Tourism will be hurt! Europeans, Scandinavians exempted, are leaving and coming less or not coming at all. They will be replaced with Chinese and Indians who no or little money at small businesses around the country.
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bluebottle
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Discussion 3 : 13 Mar 2013 at 15.433
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Obviously those with money salted away will be pleased.I cannot see how it will help the clothing industry or the Jewellery industry both say they have felt the minimum wage hike difficult to cope with, this on top most certainly will not help.Hey and what about the rice mountain although the price they finally sell that for is kept secret.
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nui
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Discussion 2 : 13 Mar 2013 at 14.542
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Whenever Thai exporters or importers cried about a weak or strong Baht, the exchange rate moved in the right directions in order to make them happy.
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