History of the Baht

[Ckrisg]

Recently did some trades in Thai Baht and my credit card company decided to send me this, never knew the baht was pegged to the Dollar until 1997:-

 

 

Established in 1897, the Thai baht (denoted as THB) is a decimalized currency that was originally developed by the country's Prince Mahisorn and introduced during the reign of King Chulalongkorn. The baht began to slowly devalue when it was pegged to the US dollar between World War II and 1980 at an exchange rate of $1 USD to 20 THB. Thus it was pegged again at 25:1 until the Asian financial crisis occurred in July 1997. Although this crisis was a result of events in Latin America, Thailand was hit hardest among the Asian countries affected when investors in the West lost confidence in East Asian securities. As Thailand recovered from the crisis the government elected to place the baht on a floating exchange rate that effectively cut its value in half. this:-

 

 

[Sporty]

Recently did some trades in Thai Baht and my credit card company decided to send me this, never knew the baht was pegged to the Dollar until 1997:-

 

 

Established in 1897, the Thai baht (denoted as THB) is a decimalized currency that was originally developed by the country's Prince Mahisorn and introduced during the reign of King Chulalongkorn. The baht began to slowly devalue when it was pegged to the US dollar between World War II and 1980 at an exchange rate of $1 USD to 20 THB. Thus it was pegged again at 25:1 until the Asian financial crisis occurred in July 1997. Although this crisis was a result of events in Latin America, Thailand was hit hardest among the Asian countries affected when investors in the West lost confidence in East Asian securities. As Thailand recovered from the crisis the government elected to place the baht on a floating exchange rate that effectively cut its value in half. this:-

 

 

 

I do not know why they sent that to you.

 

BUT, if you really want to know the Baht history, you can find much of it here.

 

http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=2

 

 

One Glaring error in the history they gave you.

 

"5 November 1984 Thai Baht had a biggest change in the currency's history. The Baht changed from B23.00 to B27.15 per U.S. dollar, representing devaluation by 14.8%.

The Exchange Equalization Fund announced that the basket of currencies was revised to include the U.S. dollar, Japanese yen, West German mark, UK pound sterling, Malaysian ringgit, Hong Kong dollar and Singapore dollar."

 

 

Now, they use a very unrealistic scheme, NEER/REER basket of 5 currencies to float with, Weighted in a high percentage to the USD and Japan YEN. Along with, Saudi Arabia, Singapore and Malaysia.

 

http://www.bot.or.th/English/EconomicConditions/Thai/Index/DocLib_EconomicIndices/REER-construction.pdf

 

[Flashermac]

The baht was originally something like 4 to the UK pound. WWII inflation is what really sent it downward. Still, the exchange rate does not reflect its actually purchasing power in Thailand. Once upon a time a single baht actually bought something. Up until the beginning of the 1960s, Thais bought things in satang - not baht!

 

 

[Guest]

The baht was originally something like 4 to the UK pound. WWII inflation is what really sent it downward. Still, the exchange rate does not reflect its actually purchasing power in Thailand. Once upon a time a single baht actually bought something. Up until the beginning of the 1960s, Thais bought things in satang - not baht!

 

 

Very true...one of my regular girls--who's in her forties now---talks about her mother giving her exactly one baht a day when she was in grade school in Ubon; that was enough for songthaew fare to and from school, a bowl of noodles for lunch, and a snack after school!

 

[Sporty]

The baht was originally something like 4 to the UK pound. WWII inflation is what really sent it downward. Still, the exchange rate does not reflect its actually purchasing power in Thailand. Once upon a time a single baht actually bought something. Up until the beginning of the 1960s, Thais bought things in satang - not baht!

 

 

 

"In 1902, the government began to increase the value of the baht by following all increases in the value of silver against gold but not reducing it when the silver price fell. Beginning at 21.75 baht = 1 British pound, the currency rose in value until, in 1908, a fixed peg to the British pound was established of 13 baht = 1 pound. This was revised to 12 baht in 1919 and then, after a period of instability, to 11 baht in 1923. During the Second World War, the baht was fixed at a value of 1 Japanese yen."

 

"In 1941, a series of silver coins was introduced in denominations of 5, 10 and 20 satang, due to a shortage of nickel caused by WWII. The next year, tin coins were introduced for 1, 5 and 10 satang, followed by 20 satang in 1945 and 25 and 50 satang in 1946. In 1950, aluminium-bronze 5, 10, 25 and 50 satang were introduced whilst, in 1957, bronze 5 and 10 satang were issued, along with 1 baht coins struck in an unusual alloy of copper, nickel, silver and zinc. It should be notes that several Thai coins were issued for many years without changing the date. These include the tin 1942 1 satang and the 1950 5 and 10 satang, struck until 1973, the tin 1946 25 satang struck until 1964, the tin 50 satang struck until 1957, and the aluminium bronze 1957 5, 10, 25 and 50 satang struck until the 1970s. Cupronickel 1 baht coins were introduced in 1962 and struck without date change until 1982."

 

http://en.wikipedia.org/wiki/Thai_baht

[Flashermac]

I've never used a 1 satang coin, but I got 5 and 10 satang coins in my change in the early '70s. We thought they were tiny, but they were actually about the size of today's 25 and 50 satang coins.

 

Kids don't even know what a salueng is these days.

 

 

[Flashermac]

 

Very true...one of my regular girls--who's in her forties now---talks about her mother giving her exactly one baht a day when she was in grade school in Ubon; that was enough for songthaew fare to and from school, a bowl of noodles for lunch, and a snack after school!

 

 

A retired Thai friend told me about taking his girlfriend on a date in the early 1950s - and spending 5 satang. He'd walk to her house, then they'd take a pedal samlor to Charoengkrung Theater (1 satang). It cost 1 satang each to watch the movie. Afterwards, they'd have some khanom - two big hunks for 1 satang. The final satang paid for the samlor ride back to the GF's house.

 

 

My Peace Corps living allowance in 1973 was still only 1,800 baht a month and I lived well on it. A new Thai university lecturer started at 1,300. They thought I was rich!

 

 

 

 

[Sporty]

I've never used a 1 satang coin, but I got 5 and 10 satang coins in my change in the early '70s. We thought they were tiny, but they were actually about the size of today's 25 and 50 satang coins.

 

Kids don't even know what a salueng is these days.

 

 

 

I like to make a mint coin collection :

 

 

Denomination Thai Value [1] Alternate meaning

bia เบี้ย 1â„6400 Baht cowrie; a very small amount of money; a counter used in gambling

solot โสฬส or โสฬศ 1â„128 Baht

att or ath อัภ1â„64 Baht

sio or py เสี้ยว เซี่ยว or ไพ 1â„32 Baht a quarter (feuang)

sik ซีภor สิ้ภ1â„16 Baht a section; a half (feuang)

feuang เฟื้อง 1â„8 Baht

salung สลึง 1â„4 Baht a quarter (baht)

mayon มายน or มะยง 1â„2 Baht

baht บาท 1 Baht 1 tical, from Portuguese, from Malay tikal [2]

tamleung (of silver) ตำลึง (หน่วยเงิน) 4 baht a gourd; weight of silver equal to four baht, or ~60 grams

chang ชั่ง 20 tamleung or 80 baht a catty ~1200 gram weight of silver; as a metric unit of weight, chang luang ชั่งหลวง = 600 grams

hap หาบ 80 chang or 6400 baht ~96 kg of silver, roughly equivalent to the monetary talent; from the verb/noun (carry) a load (suspended at each end of a pole across the shoulder); as a metric unit of weight, hap luang หาบหลวง = 60 kg [3]

 

[Pom Michael]

salueng - I think every Thai knows this, but in the context of gold weight.

 

I think there is 4 salueng in one Baht weight of gold.

[Flashermac]

I wonder if Thais still accuse someone of being MAI DTEM BAHT.