| |
Wanderingsam
|
While Wall St. had an initial unfavorable reaction to the plan for stabilizing the US banking system, I expect that over the next 7 to 10 days Wall St. will get on board and the dollar will begin to get a bit stronger, particularly against currencies like the baht. I'm not so sure about the yen, but it can't stay so strong for a long time or it will screw up the Japanese export market even more. As for what happens to the baht, in reality it depends on so many things. If the US economy begins to stabilize and then shows signs of improvement, the dollar will gain more ground against the baht. On the other hand, it the Thai political situation stabilized the baht is likely to be stronger. If it does not SW may be right, with supporting logic or not. In the end, there is no certain answer as currency values much like stock values are more driven by emotion than logic. Certainly, you can find economic phenomenon that occur when a drastic change happens but in the end even those are driven by emotion. Just my opinion.
In the end, Thailand's decision, much like the decision in the Philippine to stop tying their currency to the dollar may be a good decision. The dollar is not very dependable today so a free floating currency for these emerging economies ultimately may make more sense even with the pain caused by the recent weak dollar, particulary for overseas workers.
|
Bangkok Girls : Meet Attractive Thai Girls
Posted on: 5:42 pm on Feb. 10, 2009
|
|
Mr Alan
|
The Baht, like the Yen and Chinese Yuan have been artificially undervalued for a long time as their governments move to improve exports and create more jobs at home. But eventually, these artificial valuations cannot be sustained.
Thailand has the best chance of keeping their currency low versus the dollar simply because of the political situation.
|
Bangkok Women : Meet Sensual Bangkok Women
Posted on: 12:39 am on Feb. 11, 2009
|
|
| |
|
