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dirty guru
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Source Bangkok post 9th october 2010
The government is preparing additional measures to rein in the soaring baht if necessary, but it has no specific target rate for the currency, Prime Minister Abhisit Vejjajiva says.
In a special interview with the Bangkok Post yesterday, Mr Abhisit denied a news report that he had endorsed a Bank of Thailand (BoT) plan to introduce a tax on inflows of foreign capital, in a similar move to Brazil's central bank.
"The Finance Ministry and the central bank have prepared additional measures as options when it is necessary. But we haven't decided to do it yet. We have no specific baht target," Mr Abhisit said.
Still, Finance Minister Korn Chatikavanij will propose to the cabinet on Tuesday measures to ease the impact of the stronger baht on exporters, particularly small and medium entrepreneurs, said the prime minister.
The baht has surged by 11% against the US dollar since the beginning of the year.
It depreciated slightly to 30.06 from 29.98 to the dollar in morning trade yesterday, following regional currency weakness against the greenback.
"It's impossible to go against the trend. Even a large economy like Japan would not make it. It's not the baht that is in trouble, but the dollar," Mr Abhisit said.
The baht's appreciation has been in line with a rise in regional currencies, which means the trend has not interrupted fund flows.
"Introducing additional measures is warranted only when there is an unusual stream of flows and disruption to the economy. The Bank of Thailand would possibly do it in that case," Mr Abhisit said.
Mr Abhisit said the baht's strength has not yet affected economic stability as the current account was still in surplus. Exports were expected to hold up in September, which was the month that the baht began to appreciate rapidly. "If the current account turns to a deficit, then we are in an unusual situation. I understand that exports in September have continued to hold up," he said.
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Bangkok Girls : Meet Attractive Thai Girls
Posted on: 9:36 pm on Oct. 8, 2010
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koolbreez
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Talk about double talk. The strength of the baht, and the heavy influx of foreign deposits has more to do with the higher interest rate than any other country in SEA, than the weakness of the US dollar....lolol.
The export industry has expressed strong desires to keep the baht at or above bt30 to the dollar for them not to loose any more market share.
The rice exporters are starting to express fear that the upcoming crops will not be able to compete on the world market, and Vietnam will gain more market share, hurting Thai rice exports because of the strong baht. They are in a possition now that they will loose money exporting their rice.
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Bangkok Women : Meet Sensual Bangkok Women
Posted on: 4:28 am on Oct. 9, 2010
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onlythailand
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It is well-known that the Baht is way overvalued at the moment. This would indicate that there is a pressure for it to depreciate in the following year. Taking account the current situation in the US and Europe, the situation is likely to happen slowly and hand in hand with the stabilization and growth of those two. Currently, the outflow of capital is higher than the inflow (in Thailand) so I wouldn't be worried.
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Thai Girls : Meet Sexy Thai Girls
Posted on: 11:45 pm on Dec. 11, 2010
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