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Calls grow louder for action on baht


Flashermac

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Ron Paul puts out mis-info?

 

Sorry, do not agree with that one.

 

Back to topic...Thai Baht...sitting here in the Windy City, I will bounce an email to Mr. B who claimed that the Baht was to weaken back to 31.5 vs the USD...will advise.

Why not? I'm sure he believes the tripe. But he's not writing so, so the point is moot.

 

Mr B should find a new line of work. http://www.bangkokpost.com/business/telecom/197714/korn-admits-stronger-baht-is-harming-business -- money quote: "'The baht is expected to appreciate further since the US dollar will weaken,' Mr Korn told an economic seminar last night held by Ramkhamhaeng University's political science faculty." As I said before, *my* Thai financial guys are at 29.5 by years end...

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They don't have huge external debt (unfavorable balance of trade) because the duty on anything imported to Thailand is high enough to make the item at least 30% higher than the same item sold in the U.S.

 

I doubt that has anything to do with it. If I export wine from the UK to the U.S. it is considerably higher in price due to duties, distributor charges etc.

 

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My point was that Thailand has a duty/tariff rate considerably higher than the U.S. and many other western countries. It has the dual effect of making money for the Thai government and keeping the amount of imported goods down. This would certainly help in keeping Thailand's balance of trade in the positive. I do realise that Thailand does not have a large middle class to purchase these goods, so lowering duty would not have the same effect as it would in the U.S.

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I know nothing and reading all the posts above from learned and not so learned colleagues, leads me to this conclusion.

 

The market will ultimately drive the rate.

 

Most of the time the powers that be will set the rate in their favour.

 

Every now and then the Market will smash the powers that be.

 

No one has ultimate control over these things.

 

May be that's too simple.

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