Faustian Posted February 2, 2009 Report Share Posted February 2, 2009 Well things are beginning to bite it seems...huge fall in output, which has to have knock on effects? Deflation is a good thing for me, but I guess bad for the businesses here. Looking at this the country seems to be in a bit of a pickle...but still the Baht is strong.... http://www.nationmultimedia.com/breakingnews/30094766/Thailand-faces-technical-deflation-in-January-:-DBS-Global-Research Link to comment Share on other sites More sharing options...
Faustian Posted February 2, 2009 Author Report Share Posted February 2, 2009 I thought this was also interesting and maybe odd... http://www.nationmultimedia.com/breakingnews/30094601/Treasury-reserve-falls-to-Bt52-billion-at-end-of-December The treasury reserve is very low! Borrowing is going to be needed! How so? Why? Strange. Link to comment Share on other sites More sharing options...
.. Posted February 2, 2009 Report Share Posted February 2, 2009 Maybe because they have been propping the baht up for some unknown reason? I refuse to believe that it is stable with the US$ on its own. The fundamentals are just not here, especially compared to the slide that the Sterling and the Oz $ has experienced. Cheers, SD Link to comment Share on other sites More sharing options...
samak Posted February 2, 2009 Report Share Posted February 2, 2009 asian currencies (except yen and recently also korean won) seem to follow much more the USD in comparison to Sterling, AUD, Euro etc. not sure whether this is due to intervention of the national markets or because exports/imports and financial transactions in Asian countries are mainly in USD while for GB, Australia and Europe a lot is done in local currency Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted February 2, 2009 Report Share Posted February 2, 2009 The same logic that so many Thai "business" owners raise prices when business is slow? On the other hand, the USD did gain 10% over the baht from 10/08 to 10/09. You still billing in Euros? HH Link to comment Share on other sites More sharing options...
Faustian Posted February 2, 2009 Author Report Share Posted February 2, 2009 Maybe because they have been propping the baht up for some unknown reason? I refuse to believe that it is stable with the US$ on its own. The fundamentals are just not here, especially compared to the slide that the Sterling and the Oz $ has experienced. Cheers, SD It's odd, at a time when you'd think they want their exports to be cheaper they are in fact the most expensive I've experienced. Manufacturing output is falling dramatically, this will lead to huge layoffs, vast numbers of the unemployed will cause colossal economic problems domestically. Add to this that tourism was already down, now Thailand is a lot more expensive to the Brits, Europeans and Aussies etc, surely putting more off, which means more layoffs in the tourism sector etc etc etc. It appears someone is taking a gamble. I can't see it working. Is it gross incompetence or negligence? Or is there something else happening... Suffice to say, if this continues and Thailands economy goes tits up, the government wont survive....and guess who'll be the knight in shining armour waiting to save us all.... Link to comment Share on other sites More sharing options...
Badger77 Posted February 2, 2009 Report Share Posted February 2, 2009 The same logic that so many Thai "business" owners raise prices when business is slow? On the other hand, the USD did gain 10% over the baht from 10/08 to 10/09. You still billing in Euros? HH HH, you know what the rate will be on 10/09? (October, 2009???) Maybe you meant 10/07 to 10/08...or Im just confused. :question: Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted February 2, 2009 Report Share Posted February 2, 2009 555555555 Yep, confused. Not too unusual. I meant about 10/07-10/08 Link to comment Share on other sites More sharing options...
HeartThais Posted February 2, 2009 Report Share Posted February 2, 2009 Thailand admits to being a managed floating exchange with their primary goal being to avoid major exchange rate fluctuations against the dollar so there is bound to be some intervention going on. I just don't think the amount of intervention is all that necessary at the moment and the balance sheet supports that. The foreign reserves have been holding steady at 110B for weeks now. They did admit to propping the baht after the protests/bombings and there was a 4B drop in reserves that week. If this latest news doesn't start a round of baht depreciation, I don't know what will. Link to comment Share on other sites More sharing options...
.. Posted February 2, 2009 Report Share Posted February 2, 2009 HT, 110B? Where did that number come from? The article posted listed 52B in reserves. Cheers, SD Link to comment Share on other sites More sharing options...
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