Thai baht gaining in strength – hold on to your hats
I am not an expert of all things financial, but when I arrived in Thailand I remember learning that it was the done thing to do equations using 40 baht to the dollar. Now it looks as though the baht, currently at 34 to the dollar, might reach 30 to the US greenback.
From The Nation today:
A currency expert believes the baht could rise to 30 to the US dollar due to market mechanisms if the Bank of Thailand (BOT) does not intervene in the level of the currency, while exporters urged the central bank to slow the baht's appreciation.
Adisak Kammoon, vice president of KGI Securities (Thailand), said the movement of the baht would have to be closely monitored.
"The Bank of Thailand still doesn't let the baht move freely according to market forces, which is considered dangerous because it may quietly lead to another financial crisis," he said. "Thus, as long as the Bank of Thailand is not confident that the exporters will be able to compete on their own, it is unlikely that the 30 per cent capital control will be revoked. There is a possibility that there may be additional measures to prevent the baht from rising further. If the baht is allowed to move according to the market, the level of the baht should be Bt30."
Although Thailand’s baht is gaining on the dollar and reaching record highs, it isn’t the only currency that is looking good against the US buck. A user of the Thaivisa.com forums posted up this handy table of current mid-market rates:
- USD-THB: 31.6796
- USD-GBP: 0.496343
- USD-EUR: 0.733553
- USD-JPY: 123.415
- USD-CAD: 1.04588
- USD-AUD: 1.16158
One British pound is equal to more than two dollars. It seems us Brits are enjoying a bit of a sunny period. So what is wrong with the dollar? I ask that openly as I haven’t the faintest idea.
Back in Thailand, however, and the British pound can’t is not faring too badly against the rising baht. When I arrived in Thailand two years ago, while Americans were enjoying 40 baht to their dollar, I was getting by on 74 baht to the pound. Now the Thai baht is around 68 to the pound. .
I have previously been benefiting from Nationwide’s policy of not charging for use of their ATM/debit/credit cards overseas, but with things as they are I’m hesitant to touch my money in the UK. That being said, having a US bank account would be even more troublesome, so I shouldn’t complain.
What this also means is that my Google Adsense cheques are becoming almost worthless. The fact that monetizing a website is almost always done in US dollars doesn’t help those of us living in other parts of the world. It might be time to find an alternative, dollar-free option.
Techno' tags: Thailand, Thai baht
Yeah, that dollar-euro exchange rate is killing me. I left my savings over in the US, just in case we ever went back. Now with the baby and needing a new car, it would come in very handy, but it gives me heartburn to think how so many dollars can become so few euros…
The dollar has always been traditionally weak against most currencies, especially the pound which is often seen as the strongest currency out there.
The issue is due to aggressive US policy and also the state of the US financial situation at the moment. If you think they are close to the 2 trillion mark for their war on oil and aren't doing so well as they did during the Clinton years (yes he stuck a cigar where most Cubans don't, who cares)
Interestingly when I lived in nyc, it was about $1.40 to the pound
Hope the dollar is not gonna weaken anymore :-(
It's a real pain to see my pmurchasing power 'plummeting' here in Thailand…
There are obviously two sides to stories like this, and for those of us who live and work in Thailand, and earn Thai baht in the process, it means we have more spending power when we travel to other parts of the world.
As recently as April you could only get around 69.70 baht to the UK Pound but right now it's around 66.20. Not much I know in the grand scheme of things but for every loser there is a winner.
The value of a nations currency is determined by a large number of factors despite Daniel's attempt to link the declining $USD to the United States foreign policy. Gold reserves, international loans & money market speculators are just some of them. The strength of the economy overall is another. Historically wars are good for an economy in that demand for goods & expenditure on those goods increase.
B32 and change per dollar last week. I got soooo screwed. LOL. :)
There's a big drop in worldwide stock market today. What affect it will have on currencies?
Something I just learned a little too late. If you use an ATM card of foreign origin (say America) in a Thai bank chances are you'll be stuck with 1) a $5.00 fee PER transaction AND a 10% fee of the amount withdrawn on top of the prevailing exchange rate that given moment. ie. 25,000 Baht withdrawn equates at 32 Baht/dollar gives you 781.00 USD. Then subtract a $78.10 fee plus $5.00 which leaves you with $698.15. A real screw job.No wonder the Thai's are smiling all the time.