webfact Posted November 25, 2020 Share Posted November 25, 2020 Thai central bank concerned about baht leap, but no pressing need for QE By Marc Jones FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo LONDON (Reuters) - Thailand's central bank governor said on Tuesday the speedy rise of the country's baht currency was causing concern, but played down the chance of launching unconventional measures such as mass bond purchases any time soon. Thailand’s economy, Southeast Asia’s second biggest, is forecast to shrink by a record 7.8% this year, but a better-than-feared 6.4% third quarter drop and hopes that COVID-19 vaccines will revitalise tourism in the country has seen the baht jump 3% in recent weeks. "Our concern was the speed of the adjustment," Sethaput Suthiwartnarueput said during an emerging market conference organised by the Institute of International Finance. "It has been largely nothing to do with us" he said, also citing the post-U.S election rally in financial markets. "Our recovery, as I mentioned at the start, is still fragile." The main uncertainty lies around tourism which accounts for 12 pct of Thailand's economy and about 20% of jobs in the country. Roughly 40 million tourists visited each year before the coronavirus outbreak, but even with the prospect of vaccines next year Sethaput expects lingering uncertainty to keep numbers down to less than a quarter of their normal level. The Thai central bank left its benchmark interest rate unchanged at an all-time low of 0.50% for a fourth straight meeting last week, having enacted three cuts earlier in the year. Sethaput said "all reasonable options are on the table with monetary policy" at the moment. However he played down the prospect of moving into bond buying any time soon, as some other central banks in the region have this year. "The liquidity in Thailand and the system is still adequate, so the necessity of trying to do unconventional measures like quantitative easing now at this present juncture does not seem so pressing in our context," he said. On tourism he added: "In our initial baseline forecasts we had about 8 to 9 million (tourists in 2021) ... but even that we feel is probably on the upside, and we are probably not likely to see even that number." "That's a very difficult hit for your economy." (Reporting by Marc Jones; Editing by Karin Strohecker and Alison Williams) -- © Copyright Reuters 2020-11-25 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates Link to comment Share on other sites More sharing options...
Popular Post ThailandRyan Posted November 25, 2020 Popular Post Share Posted November 25, 2020 7 minutes ago, webfact said: even with the prospect of vaccines next year Sethaput expects lingering uncertainty to keep numbers down to less than a quarter of their normal level. For many years to come and then the economies of the world will also be a pivotal factor, as well as employment issues for many closed businesses. 8 minutes ago, webfact said: On tourism he added: "In our initial baseline forecasts we had about 8 to 9 million (tourists in 2021) ... but even that we feel is probably on the upside, and we are probably not likely to see even that number." Being very truthful when it comes to their own forecasts as that is all they are, a forecast and estimate. Until the other shoe drops no one will know what the next year will bring. 10 minutes ago, webfact said: Thailand's central bank governor said on Tuesday the speedy rise of the country's baht currency was causing concern, but played down the chance of launching unconventional measures such as mass bond purchases any time soon. Yet for the past year they have done relatively little to assist and no quantitative easing has been done at all. In other words they do not want to interfere with Thailand's elite getting wealthier, and the poor getting poorer as products here are increasing in price. Guess they feel the little subsidy they are granting the peasants are enough. "Let them eat crumbs, while we eat the expensive cake and they can look in from the outside". No wonder the populous is unhappy with the way the country is being run starting from the top. 7 Link to comment Share on other sites More sharing options...
Popular Post petermik Posted November 25, 2020 Popular Post Share Posted November 25, 2020 Currency manipulation pure and simple...???? 3 1 Link to comment Share on other sites More sharing options...
Cake Monster Posted November 25, 2020 Share Posted November 25, 2020 9 hours ago, webfact said: The main uncertainty lies around tourism which accounts for 12 pct of Thailand's economy and about 20% of jobs in the country. Has this man got muddled over the figures, as I aw a couple of weeks or so ago that Tourism was 20 % of GDP 1 1 Link to comment Share on other sites More sharing options...
Popular Post Scott Tracy Posted November 25, 2020 Popular Post Share Posted November 25, 2020 Baht leap? Yesterday $1 got 30.2736 baht, according to Oanda, today, at roughly the same time of day, it's 30.3259. £1 got you 40.36, today, 40.46. No leap. No chasm. Just a slight fall in value of the THB in comparison to those 2 currencies. AUD 22.1211 yesterday, today...22.2492...... https://www1.oanda.com/currency/converter/ 2 1 Link to comment Share on other sites More sharing options...
hotchilli Posted November 25, 2020 Share Posted November 25, 2020 11 hours ago, petermik said: Currency manipulation pure and simple...???? Absolutely, big men behind closed doors keeping the baht where they want it to be. 2 Link to comment Share on other sites More sharing options...
Isaan sailor Posted November 25, 2020 Share Posted November 25, 2020 Thailand vying for the coveted title of most overpriced currency in SE Asia. And thanks to the continuing mysterious foreign inflows—they will trounce all other countries. Link to comment Share on other sites More sharing options...
daejung Posted November 25, 2020 Share Posted November 25, 2020 3 hours ago, hotchilli said: Absolutely, big men behind closed doors keeping the baht where they want it to be. You need ammunition for that. 1 Link to comment Share on other sites More sharing options...
hotchilli Posted November 25, 2020 Share Posted November 25, 2020 7 hours ago, daejung said: You need ammunition for that. They've got it. 1 Link to comment Share on other sites More sharing options...
Misab Posted November 26, 2020 Share Posted November 26, 2020 17 hours ago, hotchilli said: Absolutely, big men behind closed doors keeping the baht where they want it to be. I believe, big powerful men, employed by US Hedge Fonds, there keep the Bath high. Link to comment Share on other sites More sharing options...
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