BAHT vs VALUE

[Sporty]

With the fix in, for the Baht, to a basket of currencies totally unrelated to the profile of Thailand economy.

 

At what point does the holiday or retirement value disappear, for you ?

[chelseafan]

Until I get 0 Baht per £.

 

Seriously, I remmeber getting 78 to the pound 8 years or so ago, my last holiday I got 49. What makes it worse is that interal inflation is pushing up prices further

[chilli13]

If you're a USD type of guy what level towards the Euro makes a trip to Europe worthwhile (as opposed to LOS)?

 

Now pushing 1.25 (EUR/USD) used to be 1.40+.

 

This relates pretty closely to how the baht (as a USD heavily pegged currency) stands

[torrenova]

Those who say it still has value are kidding themselves, at least in terms of what you get for your money, inside P4P at least. That is not uncommon as most believers are addicts who cannot give up the fix no matter what the cost and they try to convince themselves, to re convince themselves, that their actions remain rational, when they are not.

 

The post 1997 crash led to a time when guys overpaid because it was free money so to speak. Give someone a 50% pay increase and they sure as hell don't save it all. price increases were just glossed over as it was still cheaper than before. Barfines went berserk, LDs became stupidly piss taking and the girls demands spiralled out of control. Now at lower FX rates, it cannot be construed as a cheap destination.

 

Consider a night out. A few drinks, eat ong the go if not before turning out and a few LDs before you hit the main action. More booze, LDs a BF and LT and you can find yourself out $200 or more and $300/Bt10,000 is easily breached.

 

If I had thought guys would be so stupid to follow the go-go prices, get ripped off but still go back for more, I'd have the biggest go-go in Pattaya and I'd have been banking Bt20m a year for the last 5 years. Why ? because guys have proved that they are stupid beyond belief.

 

Now some want cheap but the bars cannot provide it. Why ? because they too have been stupid, though often left with little choice. Rent increases were just accepted and now the rents are so high they have collapsed many business models. Stuff I sold off in 2007 and 2008 would not get 50% of what I got and are worth perhaps 25% of the prices I received.

 

The world has few safe places where you can screw girls all night for cheap money but to have a field day in Pattaya now is very costly. You can get by but just what percentage watch the outflow of money these days compared to 5 years ago ? You can see it in the number of real high rollers and even the big spenders.

 

With GBP at sub 50 the game is up for many and if it retracts to 40, then I do not see how anyone who is not critically addicted can say it is even fair value.

[rookie]

Torrenova,

 

I love you optimism...

 

Yes, Pattaya is no longer an entertainment value, or a place providing a inexpensive cost of living.

Nor is all of Thailand for that matter.

Yet, the 2-week millionaires will continue to still flock (pun intended)) here.

 

The strong Baht also hurts the locals...but of course using their infinite economic wisdom, many raise prices when business is slow. ;-)

 

And, of course, the exchange rate pain is surely being felt by many of my farang friends...

[ozpharlap]

I guess it all depends on your values.

 

Yes, if you hang out at a bar, paying bar prices, and bar fining little fillies well, you will very quickly empty your wallet of it's hard earned cash.

[Mekong]

With the fix in, for the Baht, to a basket of currencies totally unrelated to the profile of Thailand economy.

 

At what point does the holiday or retirement value disappear, for you ?

 

 

I think a lot of punters forget what it was like pre-97 when it was 40THB/£ 25THB/$, we have basically been spoiled with the exchange rate for the past 13 years and only now is the THB approaching pre-97 levels.

 

Since I was here Pre-97 I have always used the 40THB/£ figure as the basis for calculations when considering retirement, anything more is a bonus. I was forunate enough, or some may say had the foresight, to invest in property here when it was over 90THB/£ so my monthly outgoings are minimal. If I was 20 years younger and was visiting Thailand for the first time in 2010 I doubt that I would consider it as an option for a home base.

[drogon]

What amazes me.

With the recent/current events in Thailand -> look at the Baht on the FX market -> it keeps getting stronger against all major currencies....

 

What the hell?? There are fightings in the streets and the Baht gets stronger?

Even in a country where there is a big influx of foreign capital such events should/would affect the FX rate nope?

I am a newbie in FX trade as I have only been in it for two years but this escapes my understanding.

[Nervous God]

Mate bought some beer in Lebanon, our local friend mentioned that in '74 that 100 000 dyram note was worth $50 000 USA! Now about $65.

 

[ThaiHome]

What amazes me.

With the recent/current events in Thailand -> look at the Baht on the FX market -> it keeps getting stronger against all major currencies....

 

What the hell?? There are fightings in the streets and the Baht gets stronger?

Even in a country where there is a big influx of foreign capital such events should/would affect the FX rate nope?

I am a newbie in FX trade as I have only been in it for two years but this escapes my understanding.

 

Just a thought, but maybe some understanding of what drives exchange rates might be helpful. Think supply and demand and then do some research on the demand for baht.

Try not to let lower suk get into the equation because it is not a factor in any way.

TH