Baht Faces Volatility Next Year
It is unpredictable which direction the baht will head in next year, but exporters, importers and debtors have no doubt that it will be a phase of high volatility.
Domestic economic factors will likely contribute to the depreciation of the baht. However, external factors could also play a role in strengthening or weakening the currency.
The current account deficit, political instability and economic slowdown will be the main factors putting pressure on the baht next year.
Bank of Thailand (BOT) deputy governor Atchana Waiquamdee said domestic conditions could contribute to the baht losing value. But at the same time, recession in the world's largest economy, the United States, could put pressure on the dollar and result in a stronger baht.
However, Usara Wilaipich, a senior economist at Standard Chartered Bank (Thai), predicted that a combination of external and domestic factors would lead to the baht's depreciation, particularly in the first half of next year.
The country's widening current account deficit and capital outflows to correct the US financial crisis will weaken Asian currencies including the baht, she said.
"We will hardly see any foreign direct investment next year. And we could scarcely see portfolio investment in the first half but there is a slight hope in the second half," said the economist.
The Kingdom's current account deficit in 2009 is likely to be a result of sluggish exports and decline in tourism.
Falling foreign demand from trading partฌners has already worsened export income and will continue for some time. And drop in foreign tourists due to the decline in their disposable income is eroding tourism revenue.
Usara forecast that exports would contract next year and tourism income would drop by more than 50 per cent, largely due to the global economic downturn. This would widen the current account deficit, resulting in a weaker baht....
(The Nation December 2008)
Baht Faces Volatility Next Year
Well its the first bit of good news on the financial front for a while now
I may be as poor as a tin shack inhabitant but at least i can say to mrs Sarge (with a sense of honesty)
Darlink i go bintobaht to check money baht (exchange rate)
She just wont wear im going down town for a beer
I may be as poor as a tin shack inhabitant but at least i can say to mrs Sarge (with a sense of honesty)
Darlink i go bintobaht to check money baht (exchange rate)
She just wont wear im going down town for a beer
A Greatfull Guest of Thailand
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Randy Cornhole
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I dont know!!? I leave Thailand for a few months and it all breaks down. They obviously need the stability of a well oiled fiscal Cornhole amongst the ranks.
To make things worse almost to the day I arrived back in the UK the soddin' credit crunch stepped up a notch, strangled my bank account and killed my credit card. Bastards...
To make things worse almost to the day I arrived back in the UK the soddin' credit crunch stepped up a notch, strangled my bank account and killed my credit card. Bastards...
www.35mmview.com
Randy it is THE stability and piggin strength of the Thai Baht thats killing us
what we need is a severe case of Thai Baht depression
Unfortunately the only thing suffering from depression is ME when i see how many fiscally stable Bahts i get for a well and truly screwed quid 
what we need is a severe case of Thai Baht depression
Unfortunately the only thing suffering from depression is ME when i see how many fiscally stable Bahts i get for a well and truly screwed quid
A Greatfull Guest of Thailand
If you google CIA world facts they give the statistics for every country. You can compare Thailand to any country you like.
Actually they look pretty good as far as the economy goes. Certainly better than the UK or the US, they are both basket cases. Of course you have to also recognise that almost all governments will juggle the figures to their advantage.
So trying to determine exchange rates, a flip of the coin is just as meaningful as most of the stuff you read.
Actually they look pretty good as far as the economy goes. Certainly better than the UK or the US, they are both basket cases. Of course you have to also recognise that almost all governments will juggle the figures to their advantage.
So trying to determine exchange rates, a flip of the coin is just as meaningful as most of the stuff you read.
As much as I would like to see the baht drop this year my gut feeling is that it is not going to do anything exciting in the near future.
The reason I think this is the baht is going to be struggling from lack of exports but it's struggle will be nothing compared to what the US, UK and Europes problems will be.
It is hard to understand how the US dollar has stayed so strong when they are going through money like there is no tomorrow. If it had been a individual or company it would have been broke long ago. Got a problem throw money at it and it will be OK. Easy to do when you don't have to pick up the tab. Let the future generations worry about it, if it works you look good, if it doesn't that's the breaks.
The reason I think this is the baht is going to be struggling from lack of exports but it's struggle will be nothing compared to what the US, UK and Europes problems will be.
It is hard to understand how the US dollar has stayed so strong when they are going through money like there is no tomorrow. If it had been a individual or company it would have been broke long ago. Got a problem throw money at it and it will be OK. Easy to do when you don't have to pick up the tab. Let the future generations worry about it, if it works you look good, if it doesn't that's the breaks.