Rising Baht set to Reach Strongest Level in 13-years

Published : September 10, 2010 :: 10:09:30 [ 2,565 views ]

The continuing rise of the Thai baht on the back of record growth and foreign capital inflows is rapidly pushing the Asian currency to its highest point in over 13-years, according to Central Bank analysts.

Thailand, the 10^th of September 2010: As predictions continue to emerge of both unsurpassed growth and appreciation of the baht, Thailand’s Central Bank are maintaining their ‘no intervention’ policy despite the perceived damage it may cause on the nations dominant export industry in the region.

Largely attributed to the continued appreciation of the Thai currency, overseas investors have reportedly purchased US$273 million more in Thai shares than were sold in September alone, according to exchange data. These foreign capital inflows have now boosted the baht as the most-actively traded currency in Asia over the past month.

“Regional currencies are rising because of fund inflows, and we see inflows into Thailand as well. Asia’s economic outlook is better than in other places like Europe and the U.S. The bahts appreciation will continue,” said Disawat Tiaowvanich, a foreign-exchange trader at Bangkok Bank Pcl, the nation’s biggest lender.

The baht has gained an impressive 2.8% over the past month, touching 31.06 to the US dollar on the 6^th of September, the strongest level since August 1997. Analysts predict, providing Thailand’s Central Bank does not intervene, that the baht will reach an even 31 to the dollar by the end of the month.

As for economic growth in the Kingdom, an August report released by the government saw the economy expand by over 9% in the second quarter after a 12% gain in the first. The Bank of Thailand has since raised its benchmark by 25 basis points to 1.75%. One basis point is 0.01%.

Meanwhile, Thai premier Abhisit Vejjajiva on Wednesday stipulated that the baht was not moving against predictions and that both the Bank of Thailand (BoT) and Central Bank are monitoring the situation carefully.

Asked about the damage an appreciating baht will cause to entrepreneurs and the countries competitiveness in terms of exports, the premier maintained that analysis on the bahts movement against other regional currencies was being conducted.

Comments

austentayshus

said :

I dont think the baht is the major reason why farangs arent coming here in huge numbers anymore.Hotels and bar whores are still cheap regardless of your currency. The main reasons why people dont come here are.1. Thais are obssessed with cheating and overcharging every tourist until he or she is broke. 2.the country is basically filthy with rubbish and millions of diseased dogs running riot evry where.

Email : armybkk@hotmail.com Date : 2010-09-12 10:04:33

harry hatred

said :

It's a bubble obviously, but the SET made a spike when the projects in Maptaphut got approval to go ahead after months of waiting. The Baht spiked because of this.
I think tourism from overseas is at one of the lowest figures ever here. A few friends have arrived here recently on empty planes, despite what the TAT say otherwise. Tourism accounts for less that 10% of GDP here, but employs a LOT of local people. If the tourists aren't coming there will be a lot of hungry mouths here..

Email : harry@hatred.com Date : 2010-09-11 14:28:26

aghast

said :

Who is producing and who is checking these figures ?

A 21% rise in a countrys economy over 6 months.

I don't believe it.

Email : chris@tmhp.co.uk Date : 2010-09-11 02:46:15

kaukaukane

said :

I can't cancel my upcoming (6) trips that are already booked without penalty. But I can catch a flight out of Thailand after arrival and and get more for my buck in other nearby countries ... AND I WILL!!!

Email : kaukaukane@yahoo.com Date : 2010-09-10 23:03:53

mrchang

said :

this sucks. the lowest rate i've ever seen here.

time to move to cambodia?

Email : mrchang@beer.com Date : 2010-09-10 19:18:42

tommy

said :

Completely agree with Mark on this! Its going in the bankers pockets. IVE TOLD THE THAI MISSUS WERE ON RATIONS AND THATS IT! She will have to like it or lump it...I simply refuse to line the pockets of the corrupt bankers by costantly bringing in tens of thousands of bht! If everybody else does the same this country will be cream crackered cos people just aint gona come here any more..
The thais really can be assholes over money! They'd rather see tens of thousands that rely on the tourist trade destitute rather than do the right thing for the economy and the countrys citizens..

I still have it in the back of my mind that the same people are in charge that were there when Thaksin left...Can see the discussion now..
Thaksin: 'Just keep telling the idiots that its good for the country and economy'..'I'll teach the barstewards to oust me'!
And so of course the population believes all that 'Thaksins bankers' tell them as the country heads deeper and deeper into oblivion..! Have to laugh dont you? Amazing Thailand! 55555555

Email : mrwhippy@hotmail.com Date : 2010-09-10 18:03:54

Adrian

said :

From Land of Smiles to Land Of Scammers....the economic numbers are blatantly a fake and this exchange rate is totally a farce.

Email : adrianpatt@hotmail.com Date : 2010-09-10 17:40:36

paul trumble

said :

We farangs just need to sit back and wait for the Thai economy to crash and burn. I seen it happen before when it went to 100 baht to the £pound.
Thais have no idea about market forces.

Email : ringlover1@hotmail.com Date : 2010-09-10 17:19:45

robthailand

said :

You have only seen it grow if you transfer it back into pound notes mate.

Email : robthailand1@hoymail.com Date : 2010-09-10 13:58:30

Mr Why

said :

This situation is not doing me any favours, being a druggie i am now considering selling my ring piece to fund my habit and am having to bore the shit out of people on the forum to keep my mind off drugs

Email : why@hotmail.com Date : 2010-09-10 13:28:40

Johnnie Flodder

said :

More and more people are cancelling their december holidays to Thailand. Just wait and see the X-mas ostrich! It has shrunk to a baby chicken and their won't be enough to feed the tourist industrie. Plenty of hope and plenty of problems. Crime is on the rise and it looks like Pattaya is in Mexico or Colombia. The people will stay away! Even Singapore has more (real) tourist arrivals then Thailand now and Malaysia has double the amount of arrivals of Thailand.

Email : Hahahaha@gmail.com Date : 2010-09-10 13:02:42

krack

said :

It is good to see this happening !! Now maybe all the old farts and cheap arse deros might have to think about moving on , and dont think Cambodia is all roses as living there is also skyrocketing . Maybe topping yourselves or 200 baht blowies to moto riders is the go .!!!!!!!!!!!!!

Email : krackhead@hotmall.com Date : 2010-09-10 12:53:06

keep bhat low

said :

The strong thai bhat is killing the tourist trade, farangs that send money to their thai girlfriends/wives will still send the same amount in their own currency and will not make up the difference due to the bhat rise. Wake up the bank of Thailand you are killing the tourist trade that supports many people and jobs.

Email : money@yahoo.com Date : 2010-09-10 11:28:06

mark

said :

just in time for the high season... bunch of BS this thai baht. its pegged to the bankers pocket, and the bankers pockets only. NO other reason for its rise

Email : markreyn59@hotmail.com Date : 2010-09-10 11:25:05

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