Finance minister (Thai) expects baht to continue strengthening

[benny31]

Finance minister expects baht to continue strengthening

 

:Cry4:

 

Finance Minister Korn Chatikavanij on Tuesday predicted that the Thai baht will continue strengthening, but the trend will not affect Thailand’s export competitiveness because other currencies in the region are moving in the same direction.

 

Since early this year, the baht has already strengthened by 5 per cent.

 

“Undeniably, the baht has appreciated for a year and is very likely to continue strengthening,” he said.

 

What could have an impact on Thailand’s exports is the demand for purchases by its trading partners.

 

He said the current global economy is not as bad as in the previous two years, but it had not recovered as forecast earlier.

 

Since early this year, the baht has already strengthened by 5 per cent.

 

(Pattaya today)

[leadpencil]

 

I think that his view about other currencies in the region moving in the same direction therefore not affecting Thailands export competitiveness is fairly short term.

 

If the cost of products imported from Asia continues to rise then companies will look to purchase closer to home. Capacity of European factories can not be increased overnight however capacity can certainly be increased over a six month period.

 

I think it is only when Thailands export earnings are hit hard will the Government look to take action and weaken the baht. Sadly it sounds like that may yet be some time away.

[Craig_ozz]

i agree. when exports and tourism are hit due to exchange rates, then they will deflate the baht but usually countries wait to long and the damage takes years to repair (take Japan for instance - they only started deflating the yen last week but exporters have been hurting for a year). Why do you think Hyundia, Daewoo and Kia have taken such a large % of the auto market in countries like Australia and USA - because Japan has priced themselves out of the market so people are looking to the South Korean products which are so much cheaper.

[thaibound]

i agree. when exports and tourism are hit due to exchange rates, then they will deflate the baht but usually countries wait to long and the damage takes years to repair (take Japan for instance - they only started deflating the yen last week but exporters have been hurting for a year). Why do you think Hyundia, Daewoo and Kia have taken such a large % of the auto market in countries like Australia and USA - because Japan has priced themselves out of the market so people are looking to the South Korean products which are so much cheaper.

 

I agree. I think that other ecomonies in the region will wait to see what the effect of the devaluation of the yen will be before reacting in a similar way. If the devaluation of the yen stimulates the Japanese economy resulting in an upturn then we can expect Japan's neigbours to follow suit. Lets hopes this happens soon and that the Thai government will allow the baht to reach 60 to the pound although this is probably overoptimistic.

[kuffki]

I recon Finance minister is delusional, so is half if not most of Thai Government.

 

They keep claiming that THB is in line with region currency's yet all currency's in the region have crashed and climbed back up and moving up and down, while THB keeps getting stronger.

 

Finance minister keeps claiming that Thai economy is growing and everything is honky dory, while more and more business are closing down and more and more constructions getting stalled

 

Finance minister claims tourist number are growing back to normal, while in the mean time more and more hotels are closing down.

 

I think its all a bluff and it will keep getting stronger, until the whole economy including the currency will crash.

 

PS. do not be surprised if it hits 20's thb to US$1 but who would export or produce in Thailand then and what tourists will come here?

[Gator001]

I think people need to look based on fact rather than what they want

 

Europe can start up all the factories they want but their days of being competitive are gone and will not return

 

As for the tourism furphy, its impact on the thai economy is negligible

 

 

The pound will not rise to 60 in any forseeable future

 

 

and most local currencies ARE strong

[altec123]

I think it will continue to be high until the Chinese devalue their currency.

 

I think it will continue to be high until the Chinese devalue their currency.

[david0479]

its more the us and euro economies are in the shit...

 

 

Australia DID NOT have a recession and our dollar is fine compared to the asian coins and improving against the greenback by the day

[david0479]

its more the us and euro economies are in the shit...

 

 

Australia DID NOT have a recession and our dollar is fine compared to the asian coins and improving against the greenback by the day