Thai Baht losing against Western currencies

[nickman70 470]

Thai Baht has been losing values due to outflow of capital. As of Aug. 30, 2013,

 

one USD was 32.14 Thai Baht

one Euro was 42,47 Thai Baht

one Pound was 49.83 Thai Baht

 

South Asian currencies are suffering, do you guys think this will cause a recession?

Is the job market in in Thailand being affected, are there layoff caused by this?

[js007 795]

Thai Baht has been losing values due to outflow of capital. As of Aug. 30, 2013,

 

one USD was 32.14 Thai Baht

one Euro was 42,47 Thai Baht

one Pound was 49.83 Thai Baht

 

South Asian currencies are suffering, do you guys think this will cause a recession?

Is the job market in in Thailand being affected, are there layoff caused by this?

 

It's still in a trading range, no? As for the Thai economy? It should help their exports. Then again, who do they export to, mainly? All of the developing nations are hurting right now.

[nickman70 470]

It is still in trading range but the slide has been non-stop lately, this will become a big problem if it continues, the Baht purchasing power is diminishing, that has to hurt the general public....Philippines and Indonesia have it worse

[js007 795]

It is still in trading range but the slide has been non-stop lately, this will become a big problem if it continues, the Baht purchasing power is diminishing, that has to hurt the general public....Philippines and Indonesia have it worse

 

The public may be "harmed" via inflation, but the businesses may do well and hence hire more workers. Maybe it's a wash?

 

Don't forget, it wasn't that long ago when the baht was 38 to the dollar, and the world didn't end then.

[pattaya_mad 208]

Thailand fell into recession last month.

[ricosuave 130]

I think it's more to do with parts of Europe and America slowly but surely recovering from the recession and bouncing back a little. I remember the days of 70+ baht to the pound, have seen it slip to 43 and recover to 50 recently.

[Wings 55]

Have a look at the poor AUD, that was at 34 no too long ago.

[jacko 8,578]

Yeah, apparently these Asian countries are suffering as their growth has stalled or fallen to about 5%.

 

While in Europe they go whoop-de-doo over an improved, government manipulated +0.2%......

[papillon 695]

Oh please, not another 'Armchair Economist' thread. Not one of you saw the shit hitting the fan in 2007/2008.

 

Do yourselves a favour, stop trying to think you have any sort of understanding of what makes the World spin and try and enjoy yourselves with what's available right now.

[Shilo 371]

Nearly all of the Emerging Market currencies have been taking a hit. There seems to be 2 causes. First is the announcement that QE will be rolled back in the US soon. Just a "hint" that the easy money might start to dry up caused a good amount of "hot money" to flow out of the Emerging Markets. If (WHEN) the QE actually does begin to dry up is when the crap will hit the fan. The second cause is the efforts to control the rise of easy debt in China. Along with the QE efforts, this has been the other main driver of growth in the world for the past 5 years. It's been a double blow to the EM currencies but it is also the main force behind the drop in the currencies of countries that have benefited from the sale of natural resources like the Aussies.

 

These are all problems that people should be aware of but not the real issues that will tip the balance going forward. None... I repeat... NONE of the issues that caused our financial problems in the past have been resolved. They have only been "papered over" with sovereign (read: gov't) debt. The Japanese experience shows that this "treatment" can go on for a long time. But at the cost of real growth and future imbalances. IE: we're not out of the woods by a long shot.

[wacmedia 277]

 

Not one of you saw the shit hitting the fan in 2007/2008.

 

Hi,

 

I'd like to be excused from that, old boy.

[MeGoDanceNow 4,281]

Oh please, not another 'Armchair Economist' thread. Not one of you saw the shit hitting the fan in 2007/2008.

 

Why not? Bernanke and Greenspan didn't have a clue either. We're in good company.

[js007 795]

Oh please, not another 'Armchair Economist' thread. Not one of you saw the shit hitting the fan in 2007/2008.

 

Do yourselves a favour, stop trying to think you have any sort of understanding of what makes the World spin and try and enjoy yourselves with what's available right now.

 

I'm sure I saw the "shit hitting the fan" as early as 2005 or 2006. The housing bubble was more than obvious. Unfortunately, I didn't take my own advice. I didn't short any of the banking stocks back then. I just stayed away from them. I'll have to go back and see if I made any posts about financial stuff way back then.

[nickman70 470]

Oh please, not another 'Armchair Economist' thread. Not one of you saw the shit hitting the fan in 2007/2008.

 

Do yourselves a favour, stop trying to think you have any sort of understanding of what makes the World spin and try and enjoy yourselves with what's available right now.

 

 

This is an ongoing subject and will not go away as long as there are currencies, countries and banks. I am not really trying to understand what is the current shift in emerging currencies, I am trying to understand if all this will have effect on P4P. Does this current situation mean we will have more Thai honeys available...LOL

[Keen Punter 272]

I for one hope it keeps weakening.

[Fatboyfat 361]

This is an ongoing subject and will not go away as long as there are currencies, countries and banks. I am not really trying to understand what is the current shift in emerging currencies, I am trying to understand if all this will have effect on P4P. Does this current situation mean we will have more Thai honeys available...LOL

The normal practice in Pattaya, when the exchange rates start to favour the visitor, is to raise prices; accompanied by the wail " Just think of the price you would pay in USA/Europe". The reverse situation price reductions are rarely if ever seen!

[MM 6,562]

Fatboy, I can't think of any case where prices are affected by the baht exchange rates, at least in the bar business.

 

All expenses are in baht, all income is in baht.

 

Which stronger currencies would this supposed increase be based on?

 

They all move in different ways.

The AUD was strong while the USD, GBP, and Euro were lagging.

 

 

Nah, that theory is pretty much unfounded.

 

Sent from my GT-I9300 using Tapatalk 4

 

[CheshireTom 1,377]

Fatboy, I can't think of any case where prices are affected by the baht exchange rates, at least in the bar business.

 

I think that was exactly the point he was making. Prices go up (to whatever the market will tolerate) for no justifiable reason other than the punter is getting more Baht for his GBP, USD, EUR, or whatever.

[Wings 55]

The thai theory is, lossing money and if things are quite and not making the same money as before, put up the prices.

 

The normal way would be to discount and get 10 times more people in and sell more to make your profits that way

 

Just my thoughts.

[ozibill 546]

My principal concern is the exchange rate - There is no way the £ will get stronger in the foreseeable future so the only hope of getting more baht for my pound is for the baht to weaken . With the cost of living getting higher here every day , more baht per £ means that my cost of living remains steady .

[MM 6,562]

Fatboy, I can't think of any case where prices are affected by the baht exchange rates, at least in the bar business.

 

I think that was exactly the point he was making.  Prices go up (to whatever the market will tolerate) for no justifiable reason other than the punter is getting more Baht for his GBP, USD, EUR, or whatever.

During the recent years where currencies were weak against the baht, prices have gone up. Factors, all denominated in baht, have been higher rents, salaries, taxes on booze, capital expenditure for these new flashy places...lots of internal reasons that have nothing to do with exchange rates.

No, his point couldn't be further from mine, but thanks for chiming in.

 

Sent from my GT-I9300 using Tapatalk 4

 

 

[atlas2 4,329]

I think that was exactly the point he was making. Prices go up (to whatever the market will tolerate) for no justifiable reason other than the punter is getting more Baht for his GBP, USD, EUR, or whatever.

So how do they price between these 3 examples?...........How do they know who bought their baht with what?

Edited September 2, 2013 by atlas2

[jacko 8,578]

Fatboy, I can't think of any case where prices are affected by the baht exchange rates, at least in the bar business.

 

All expenses are in baht, all income is in baht.

 

Which stronger currencies would this supposed increase be based on?

 

They all move in different ways.

The AUD was strong while the USD, GBP, and Euro were lagging.

 

 

Nah, that theory is pretty much unfounded.

 

Sent from my GT-I9300 using Tapatalk 4

I might be tempted to take that scenario back to 1997, when of course Thai baht plummeted to it's all time low..... I might say I noticed a few falang bar owners in Pattaya squeezing a few baht on a beer!

[papillon 695]

Hi,

 

I'd like to be excused from that, old boy.

 

You're excused. As you were Old Chap.

[CheshireTom 1,377]

So how do they price between these 3 examples?...........How do they know who bought their baht with what?

 

Who are "they"?