GBP vs THB

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HHTel
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Re: GBP vs THB

Post by HHTel » Sat Aug 25, 2018 2:12 pm

China has over 3 trillion and has the largest foreign reserves (by a long way) in the world.

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StevePIraq
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Re: GBP vs THB

Post by StevePIraq » Sat Aug 25, 2018 2:22 pm

This is the full list of foreign reserves, very interesting

https://en.wikipedia.org/wiki/List_of_c ... ding_gold)

However this is an even better list explain why certain countries do not have huge foreign reserves, basically because their own currency is the reserve

http://www.visualcapitalist.com/countri ... -reserves/
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lomuamart
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Re: GBP vs THB

Post by lomuamart » Sat Aug 25, 2018 2:45 pm

I'm no economist, but I think the advantage of having large foreign reserves is that you can buy your own currency in large enough amounts to prop it up if necessary. That might be over simplistic but I think that's the general aim.
Another factor of course is that the GBP is weak so it's not all about the strength of the THB except that we seem to be getting hit from both sides!!

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StevePIraq
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Re: GBP vs THB

Post by StevePIraq » Tue Aug 28, 2018 7:11 am

But it is not the cause to worry about as there is nothing we individuals can do about it, the worry is the effect.

I now have two friends who's pension no longer meet the minimum requirements. They have no idea what to do.
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Re: GBP vs THB

Post by StevePIraq » Sat Sep 08, 2018 10:27 am

06 Sep, 2018 Good news for a change

Pound to rise 6% in a year, if there’s a Brexit deal

Sterling will make robust gains on the dollar over the next year, based on the notion that Britain exits the EU with a deal, according to a Reuters report.

Average forecasts in the survey of 50 foreign exchange experts showed gains of $1.28 in a month, $1.32 in six months and $1.37 in a year – showing an approximate 6% rise from Wednesday’s trading.

However, this still won’t return to levels seen before the Brexit referendum, and those forecasts were somewhat weaker than ones suggested last month, reinforcing market uncertainties as the Brexit deadline approaches.

Kamal Sharma at Bank of America Merrill Lynch said: “Our high conviction view remains that a deal will be reached ... we think this will take GBP/USD back above the $1.30 level and towards $1.35.”

Instead the pound will fall 8% immediately after Brexit should Britain leave without a deal next March, according to mean forecasts within the poll. The most negative response was for a 15% fall.

According to analysts at SEB: “If the negotiations should collapse, or if the agreement is rejected by some EU country or by the UK Parliament - causing the UK to leave the EU without an agreement next year - there is a risk that the pound will depreciate dramatically, especially against the dollar.”

Another Reuters survey carried out this week revealed just a 25% chance of a no-deal Brexit, even though there are just two months until the UK and EU hope to reach an agreement on the terms of Britain’s departure.

Valentin Marinov at CA-CIB stated: “The risks to our forecasts are tilted to the downside.

“While our central case remains that the EU and the UK will eventually arrive at a mutually beneficial and business-friendly trade deal, chances are this will come only after a period of heightened political uncertainty and growing fears about a no-deal Brexit.”

According to Reuters analysis, soon after Brexit, the Bank of England is predicted to increase its Bank Rate by 25 basis points to 1.0%, to provide some support to the pound, but not make any further actions until 2020.

Elsewhere, the Federal Reserve has been gradually hiking borrowing costs since 2015, which has supported the dollar, together with investors opting for the safety of U.S. assets due to trade war fears.

The European Central Bank is predicted to increase interest rates in the quarter after the Bank of England does.
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