Sporty Posted February 19, 2009 Report Share Posted February 19, 2009 BOT urged to intervene baht By Anoma Srisukkasem The Nation Published on February 19, 2009 "The market yesterday called for the Bank of Thailand to intervene in the baht in line with other regional curà ¸?rencies and abolish distortions in the forex market that dampened the effià ¸?ciency of monetary policy." http://www.nationmultimedia.com/2009/02/19/business/business_30096040.php Link to comment Share on other sites More sharing options...
Faustian Posted February 19, 2009 Report Share Posted February 19, 2009 Got a bit of a problem with the chor-chur (à ¸?) key it appears... Anyway, good news! Maybe... Link to comment Share on other sites More sharing options...
drogon Posted February 19, 2009 Report Share Posted February 19, 2009 Thanks for posting this. So this article coupled with what I found in the foreign press about the big decline in Thailand's exportation -> What kind of smurfs ae the BOT and the government?? (+ in a smaller measure the Thai banks) For me the equation is simple: If country T economy is dependent on exportations -> if exportations fall = less money received + if currency B is stronger against the importing countries currencies = bigger losses This sounds rather simple to me (who is not an economist nor have any interest in the local economy) but it seems some "smart" people in country T are not really bright.... Add to this the current crisis, less tourists and the ones coming spending less.... Are they trying to sink their economy? Link to comment Share on other sites More sharing options...
Coss Posted February 19, 2009 Report Share Posted February 19, 2009 It's standing room only on the edge of the cliff... Link to comment Share on other sites More sharing options...
HeartThais Posted February 19, 2009 Report Share Posted February 19, 2009 drogon, In your simplification, you bring up a good point. Presumably the BoT is an independent central bank but I doubt it is as they say it is. Their primary goals are financial stability. They are extremely focused on inflation and exchange rate volatility. The debate I am sure they are going through now is whether business cycle smoothing is part of their function. The complexity here is that the main tool of business cycle smoothing is monetary function so if they start messing more with the exchange rate, they lose more flexibility in their monetary policy unless they slap on China style capital controls. There are lots of advantages to having a slow moving exchange rate. Foreign investors don't have to worry as much about hedging. Domestic borrowers can borrow in more liquid Euro/USD markets without worrying as much about hedging. So while this low vol exchange rate is bad right now for exporters, it is good for encouraging business investment. The obvious question you bring up though is what's the use of enhancements if the patient is dying? There is another example of an ultra-rigid central bank and that's the German Bundesbank. Like the BoT, their identities are forever scarred by crisis. For Germany, their experience with hyperinflation will always make central bank independence and inflation targeting their primary goal, just about blind to any others. For Thailand, there is a strong feeling that currency speculation destroyed their economy in 1997. Therefore, the central bank will do anything in their power to make the baht inhospitable to speculators. Link to comment Share on other sites More sharing options...
drogon Posted February 20, 2009 Report Share Posted February 20, 2009 Yes and rigidity in any system/organization -> leads invariably to disaster. To simplify things is the best at the moment as all complicated solutions have gone down the drain and for LOS I would say: "No money, no honey". Link to comment Share on other sites More sharing options...
drogon Posted February 20, 2009 Report Share Posted February 20, 2009 I see something ugly pointing its head... http://www.bangkokpost.com/business/economics/11978/tarisa-says-weaker-baht-won-t-help "Migrant workers are another potential issue, he said, considering that there were two million legal immigrants registered in Thailand and an unknown number of illegal workers." So the BOT says it is useless to let the bht devaluate a bit....so let's hunt immigrants who are responsible for all Thailand's troubles. Link to comment Share on other sites More sharing options...
cavanami Posted February 20, 2009 Report Share Posted February 20, 2009 It can *** never *** be the fault of the Thai gov...5555555 Link to comment Share on other sites More sharing options...
drogon Posted February 20, 2009 Report Share Posted February 20, 2009 Are expats considered legal immigrants? Let's see the positive side of this soap opera/drama, maybe in a few months we will get 80bht/ for one USD/euro (positive only for some of us...sorry KS, CTO and the others) Link to comment Share on other sites More sharing options...
Weird Posted February 22, 2009 Report Share Posted February 22, 2009 Hey, if it goes to 80bht/$1 I'm sure a few of us from the U.S. could afford to donate a few baht on our trips Link to comment Share on other sites More sharing options...
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