drogon Posted December 3, 2008 Report Share Posted December 3, 2008 Better late than never http://news.bbc.co.uk/2/hi/asia-pacific/7762294.stm http://www.bangkokpost.net/031208_Business/03Dec2008_biz30.php Why is the BKK post usually always late compared to EU newspapers??? They don't have a night service for news flash?? Link to comment Share on other sites More sharing options...
cheekyboy Posted December 3, 2008 Report Share Posted December 3, 2008 its a mystery why the baht hasnt collapsed is it not. Link to comment Share on other sites More sharing options...
Torneyboy Posted December 3, 2008 Report Share Posted December 3, 2008 "We expect the baht to continue to weaken and the dollar to appreciate. The fact that the European Central Bank tends to reduce interest rates aggressively in the future could lift the dollar further," the dealer said. Just doing what the other world currencies are doing ...go up and down for some time yet... Link to comment Share on other sites More sharing options...
Sporty Posted December 3, 2008 Report Share Posted December 3, 2008 its a mystery why the baht hasnt collapsed is it not. No Mystery, the Thai Central Bank, is not allowing it to float. Live rates at 2008.12.03 23:13:44 UTC Notice: The THB rate shown below is the international rate. Rates used within Thailand may vary. 1.00 USD = 35.6170 THB United States Dollars Thailand Baht 1 USD = 35.6170 THB 1 THB = 0.0280765 USD In Jan. or Feb. they fixed it, to not allow speculators to take advantage was the reason given. So, it floating under the control of the Thai Government. There is another post someplace, on the board, with the details. My comment, is that Thai Exports, are going to be hurting, as RICE, is being harvested now. With an excess in the world, this year. Rice is close to 50% of their exports. It's sold internationally in USD, so will not be competitive, unless the Thai Government, subsidies that end, too. Link to comment Share on other sites More sharing options...
Paillote Posted December 4, 2008 Report Share Posted December 4, 2008 No Mystery, the Thai Central Bank, is not allowing it to float. I see this beeing repeated so many times it is becoming a de-facto truth, but can anyone really document this? I am not saying that the TCB dont intervene, but why should they be able to control their currency rate, while bigger economies can not? I guess it is low volume of speculation in Baht that keeps the rates so stable. Other small currencies have taken a real nosedive as speculators have sold out. I have also noted that converting a currency to Bath and right back again takes quite a chunk out of your money. This is not the case with more widely traded currencies. Big speculators are probably not hit with costs at similar scale, but why is it like that for the average person? Paillote Link to comment Share on other sites More sharing options...
Sporty Posted December 4, 2008 Report Share Posted December 4, 2008 Since the first of the year its been in the BKK Post or Nation, a half a dozen times. Mostly to stop speculators. "The Bank of Thailand said it had intervened in the foreign-exchange market to support the baht after the government declared emergency rule in the capital. "The announcement [by Prime Minister Samak Sundaravej] has caused the baht to weaken and be volatile, so we had to step in and support the baht this morning," said deputy governor Atchana Waiquamdee." http://www.bangkokpost.com/breaking_news/breakingnews.php?id=130307 Trade into or out of currency you take in hand, is generally about 2% tranaction fee. IT IS NOT, the same for speculators. Link to comment Share on other sites More sharing options...
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