Bahts strength damaging Thailand

[sparkydave]

just seen this in the Bangkok post, shows that the effect on us not spending as much baht is small but that baht's strength would curb export revenue and lead to liquidity problems for Businesses

 

http://www.bangkokpost.com/business/economics/202649/utcc-surveys-baht-damage

[miles stewart]

i really dont know how this is going to work out as the general population has noticed no difference in thailand.

 

for example a carton of milk costs them the same as always, a bag of rice is the same as always,my wife has noticed no difference in what she spends each week this month than from last year.the only thing she do'se moan about is eggs have gone up.

 

i understand what you say about exports if they have to sell in US $'s but surely it must also affect imports,they must be laughing at how much they are saving.

 

for example all those rich Thais driving round in their new MERC'S and BMW'S,they are still paying the same price at the showroom as 3 or 4 years ago but the importer isnt hes making a 40% profit on 3 years ago.his exchange rates are so much better.

 

how much of Thailands gross product is imported and how much is exported.

 

are all those lcd tvs made here or imported now its cheaper to do.

 

i cant see how the Thais logic is they will lose face and devalue their own money,it will really need to hit something hard before they do.

 

we buy things from the UK USA and CHINA for our business and are saving loads of money at the moment,we sell at the same price as always but buy for a lot less so a much higher profit margin.

 

plus our import duty is less as we are buying at a much lower price.

Edited October 22, 2010 by miles stewart

[Benny10]

It’s always the same, no matter what country.

 

If a currency (in this case the THB) gains against other major currencies, then the export industry complaints about major difficulties to sell their products abroad.

But they hardly complain that they most of their imported commodities such as oil, steel, machineries, etc., are getting cheaper, because they are generally traded in US$.