Thai baht continues the sharp appreciation.

 

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Thai baht continues the sharp appreciation.

 

View the full article

Loving it!  I win either way...

The best rate I got on my recent two month trip was 29.77. And that was during the third week in February. I watched things nosedive from there.

This exchange rate news is continually getting bad to worse, its about as welcome as a fart in a space suit,

I wonder what's going to crash first? Dollar, Baht, Euro or Pound?

The best rate I got on my recent two month trip was 29.77. And that was during the third week in February. I watched things nosedive from there.

 

We must have been there around the same time.  I was also there in November and getting around 30.50, so I thought the 29.75-range in February was bad.....little did I know!

 

I'm guessing people "on the ground" are getting about 28.35-28.50 today?  

 

As I have noted in other threads, the reduction may not seem extreme on a dollar-for-baht basis, but when you look at over $2000 USD, it REALLY adds up.  Assuming the exchanges in Pattaya are paying 28.50 today, that is 2 baht per USD from November.  Over 2000 USD, that's 4000 baht.  I'm no CC, but 4000 baht certainly isn't insignificant to me.

 

There was an article posted in another thread that mentioned the Thai government planned to address the rising baht after Songkran.  My guess is that it is getting a little TOO strong for them -- at some point, it will hurt tourism and export business.  Hopefully they start to reign it in before it hits 26 baht/USD!

Thailand's exports of goods and services is reported at 77.63% of GDP as of 2011 based on World Bank report published in 2012.

 

So the strong Thai Baht is going to have a HUGE impact to Thailand economy.  I would guess it is a foregone conclusion that the Thai government would intervene at some point.

 

Below is a chart of %GPD from 1967 to 2013.  It's interesting to note the acceleration of export growth just after 1997 (*wink*) and the slowdown / dip in last few years.

 

Edited April 20, 201313 yr by casinoclub

Yes, the Baht is very strong and a few articles are being written that the strenght is not equal to the foundermentals.  For those who have been following it, the baht is somewhat defying logic. However, with the publicity that it is getting, I foresee the baht, not dumping, but topping out soon.  If your wanting to move your home currency into baht, wait if you can.  This may be a few months down the road, but the baht will need to decline a bit or one will see a decline in major purchases such as condo's.  

 

If condo, home and other major purchases decline it will cause even more of a glut in the housing market.  Well we have seen what happens then.  Inventory levels are high and bank financed properties could be in trouble if this trend continues.  My advise spend wisely at this time, If you find a value and have baht, go ahead and move on it.  Otherwise keep your currency at home unless needed. 

 

It was'nt hard to spend 9000 baht a day/night this year for Songkran. 

 

Prices just keep getting more expensive also with the strong baht to deal with !