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why is the thai baht still strong


A_J

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In the USA "they" will say the stock is 10%, from last year (which was down 20%) so in the end they recover *** some *** of the loss.

 

Remember when the Dow was near 20,000...hasn't even had a sniff of that in many years!, so, OH, they are not really growing, just trying to recover to where they had been, as least in USA talk.

Well that's a different matter, stocks vs. currency.

And neither stocks indexes nor currency trends do necessarily reflect growth.

Economic science is anything but scientific.

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In the USA "they" will say the stock is 10%, from last year (which was down 20%) so in the end they recover *** some *** of the loss.

 

Remember when the Dow was near 20,000...hasn't even had a sniff of that in many years!, so, OH, they are not really growing, just trying to recover to where they had been, as least in USA talk.

 

Just for the record the DJA industrial average reached a record of 14,198.10 on Oct 2007, and then began a fall that ended in at 6,547.05 in March 2009, virtually wiping out over 12 years worth of gains. It is now trading in the low 11,000 and appears to heading generally up as the US and the world economy continues to recover.

 

The peak for the Thai economy was 2008, when exports hit some 175 billion USD. They dropped to 150 billion last year, which was the same as 2007 levels. Forecasts for this year are in the 165-173 billion range.

TH

 

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Ok, so in relative terms, are they lower, equal or greater than they were before, and or lower, equal or better than the currencies they are compared to...USD, AUD BPS etc...?

 

In other words, if 2010 puts them where they were in 2008, but the USA or Euro or Aus economies are not at the same levels, then that would explain why the Bht is strong? did I just figure this out? or am I still fucked on it?

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Ok, so in relative terms, are they lower, equal or greater than they were before, and or lower, equal or better than the currencies they are compared to...USD, AUD BPS etc...?

 

In other words, if 2010 puts them where they were in 2008, but the USA or Euro or Aus economies are not at the same levels, then that would explain why the Bht is strong? did I just figure this out? or am I still fucked on it?

 

I will make it simple. Currency prices relative to others is based on supply and demand. If you have dollars and want to invest in the SET, you must buy Baht, if a lot of people want Baht, then they will bid the price up.

TH

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Ok' date=' so in relative terms, are they lower, equal or greater than they were before, and or lower, equal or better than the currencies they are compared to...USD, AUD BPS etc...?

 

In other words, if 2010 puts them where they were in 2008, but the USA or Euro or Aus economies are not at the same levels, then that would explain why the Bht is strong? did I just figure this out? or am I still fucked on it? [/quote']

 

I will make it simple. Currency prices relative to others is based on supply and demand. If you have dollars and want to invest in the SET, you must buy Baht, if a lot of people want Baht, then they will bid the price up.

TH

 

... except for the case of China. :neener:

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Strange, I always thought that a currency strength is decided mainly by the state of the economy and what investors believed...

 

http://www.bangkokpost.com/news/local/176019/baht-ok-but-tourism-suffers

 

Well, I didn't check the numbers about Thailand current economy's state but I would believe that with what is currently happening -> investors would feel less than confident.

 

Someone more familiar with Thailand's economy would mind explain in details?

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