BAHT HITS NEW HEIGHTS
It's official - the Thai baht is the world's best performing currency so far this year. This week the baht hit a 10-year high against the US dollar and the Stock Exchange has been hitting similar dizzy heights- thanks mainly to overseas buyers. For the first time in more than 10 years the US$/baht rate is less than 34.00.
What this means is real terms is that exported items from Thailand are now marginally more expensive and less attractive to overseas buyers. It also means tourists have slightly less baht for their money - although the latter isn't really anything to write home about yet.
The Bank of Thailand has urged calm in the business community and has predicted the rise as only being 'temporary'. Do they know something we don't? By saying the rise is temporary they are saying they expect a fall.
In contrast, the Government announced this week they expect a 12.5% increase in exports during 2007.
3 comments:
I didn't notice that the BAht has risen so sharply over the last couple of months. Too bad. It will make travel to Thailand a bit more expensive.
If only the political situation would turn out smoothly soon, things would improve quick. But maybe the Baht would even rise more then.
;-)
Cheers from Bali,
Chris
Life is what you make it!
http://www.nomad4ever.com
Chris - I worry that the baht will get even stronger once the political situation is resolved. That might still be a way off yet but it just doesn't make sense to me why Thailand is seen as such an attractive prospect with this level of uncertainty.
To Andrew : the issue is not the THB. Nor the Euro, nor the GBP, not even the currency of Saturn...
The problem is the USD. ;-)
However I agree with you regarding the level of uncertainty (and even the level of risks) in Thailand, on short and medium term.
If you want to follow the currency drama (among many other) check :
http//thaicrisis.wordpress.com
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