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Foreign baht speculation in retreat


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Foreign baht speculation in retreat

By THE NATION

 

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The Bank of Thailand is seeing less speculation on the baht among foreign investors thanks to measures implemented last month.

 

The amount of money being stored in Thailand by foreign investors has decreased, it said on Tuesday.

 

The central bank on July 22 introduced two measures to reduce the outstanding balance of non-residents’ baht deposits for both non-resident accounts for securities and non-resident baht accounts, from Bt300 billion to Bt200 billion maximum per account.

 

The volume of currency speculation in Thailand has since declined significantly, said the bank’s assistant governor, Vachira Arromdee. Foreign speculators are more cautious about investing in Thailand, she said.

 

Thailand, as many other countries do, also requires the disclosure of names of foreign investors wishing to invest in its bond market, she said. This is in order to understand their intent.

 

Source: https://www.nationthailand.com/business/30375432

 

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-- © Copyright The Nation Thailand 2019-08-27
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3 hours ago, webfact said:

The volume of currency speculation in Thailand has since declined significantly, said the bank’s assistant governor, Vachira Arromdee

As most bankers go, it's pretty vague talk, apart from the direction of the speculation.

Any chance of telling us how significantly? 2%, 50%?

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13 minutes ago, quandow said:

Considering the conflicting reports on everything from number of arriving tourists to amount of rice exports, I'd give this article a solid four Pinocchio's.

Yep - conflicting indeed! - just finished reading an article on CNBC that forecasts a huge rise in investment in Thailand due to the ongoing trade war! https://www.cnbc.com/2019/08/27/us-china-trade-war-companies-looking-to-invest-in-thailand-vietnam.html

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15 minutes ago, CGW said:

Yep - conflicting indeed! - just finished reading an article on CNBC that forecasts a huge rise in investment in Thailand due to the ongoing trade war! https://www.cnbc.com/2019/08/27/us-china-trade-war-companies-looking-to-invest-in-thailand-vietnam.html

Not only that article, but 33 minutes after this article was posted, I see this on Thaivisa...

 

 

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55 minutes ago, webfact said:

Thailand, as many other countries do, also requires the disclosure of names of foreign investors wishing to invest in its bond market, she said. This is in order to understand their intent.

Is this a TM30 for foreign investors being enforced?The baht has indeed gone down a tad since yesterday.

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1 hour ago, webfact said:

to reduce the outstanding balance of non-residents’ baht deposits for both non-resident accounts for securities and non-resident baht accounts, from Bt300 billion to Bt200 billion maximum per account

And .. what are you supposed to do then .. you can't just walk around with 100 bil' in a carrier bag you know .. That's why we put it in the bank .. 

 

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6 minutes ago, Justgrazing said:

And .. what are you supposed to do then .. you can't just walk around with 100 bil' in a carrier bag you know .. That's why we put it in the bank .. 

 

Put it in a different bank (i.e. use 2-3 banks). Duh!

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21 minutes ago, wotsdermatter said:

The Canadian Dollar does not agree with you as it is at  22.9968 according to Currency Exchange just 5 minutes ago.

My appologies.Geez I can't win a trick today,maybe the Oz dollar had a gain rather than the Baht had a fall.It's not a date line thing is it?There have been reports that the currency market may get volatile.I should have said the baht went down compared to the Oz dollar.

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38 minutes ago, Justgrazing said:
1 hour ago, webfact said:

to reduce the outstanding balance of non-residents’ baht deposits for both non-resident accounts for securities and non-resident baht accounts, from Bt300 billion to Bt200 billion maximum per account

And .. what are you supposed to do then .. you can't just walk around with 100 bil' in a carrier bag you know .. That's why we put it in the bank .. 

You need to pay attention: Leave it in the back of a taxi.

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2 hours ago, rodknock said:

the baht keeps getting stronger every day.

big problems ahead.

it's got a long way to go, especially against other fiat currencies like the USD and GBP.  Check out the big mac index for one.

 

think of it this way, it's finally moving back to its fair value of the mid 90s when it was at 25 to the USD.

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1 hour ago, bert bloggs said:

New Zealand has stopped foreigners buying property as prices were rising so fast ,that was some time ago ,guess who was buying it all ,yup the Chinese , so more buying here in Thailand?

And New Zealand did the right thing, too. Was shocked to see so many homeless people in Auckland, when I travelled there. - Give all Chinese visa-free entry to Thailand, and see how Thailand will change over the next 20 years; see Cambodia (Chinese buying up all hotels; New Zealand, where families are forced to live in garages and cars, etc., etc.)

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22 hours ago, Justgrazing said:

And .. what are you supposed to do then .. you can't just walk around with 100 bil' in a carrier bag you know .. That's why we put it in the bank .. 

 

Quite true because no more carrier bags, except the three for my Leo yesterday and if i said 1 more they would have obliged

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22 hours ago, Justgrazing said:

And .. what are you supposed to do then .. you can't just walk around with 100 bil' in a carrier bag you know .. That's why we put it in the bank .. 

 

Yeah, and it would already be hard enough with 100 MILLION, ...as it seems the 'financial specialist' from The Nation got his legs entangled in the figures, taking millions for billions! The reduction in question is indeed from 300 MILLION to 200, and NOT BILLIONS. Thais and maths, I know but no excuse for a newspaper like The Nation, ...and 'a warning' for 'our' 'webfact' to have missed this one...

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2 hours ago, roobaa01 said:

today there is an article telling us about hot money flowing into los and if the bot measurements curb the baht remains to be seen whereas this article tells the opposite.

what is fake news ???

 

wbr

roobaa01

No fake news, just the usual cluelessness of so-called 'experts' contradicting one another after sticking a wet finger in the air, in an attempt to show they are relevant, and deserve their highly paid job, maybe...? (Basing their 'analyse' on only some selected elements among the array of the presently very controversial ones, can indeed lead to totally opposite conclusions.

Which may explain, a bit, the (lack of consistent) policy of the BOT, I'd hesitate between calling 'a headless chicken', or 'an ostrich sticking iits head in the sand', but nothing contradictory in that...

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It was said that a further reduction in the interest rate would have a negative impact on household debt. That assumes people have vast sums in the bank, which they don't. If they did there wouldn't be so much household debt. Would you rather have the current interest rate on your 20,000 baht savings, or a reduced interest rate on your 1,000,000 baht household debt (truck, house, whatever). In other words they are blowing smoke. When everyone says something is going up, it usually goes down, and they are trying to prop up the price while getting out.

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