Baht What up with Dat?????

[RALPHCUSENS]

just checked out the exchange rates offered by Lloyds TSB in the UK.

As there may be people that read the site, that are tempted to exchange money before they come to Thailand, don't!!! ; Rate offered by Lloyds, = 52.37 , rate offered by Bangkok bank = 55.95Baht to the Pound!


BANK SELLING RATES
Currency Bank Notes Travellers Cheques

Australia Dollar (AUD) Not Available 2.386700

Bahrain Dinar (BHD) 0.588600 -

Bangladesh Taka (BDT) 104.824000 -

Barbados Dollar (BBD) 3.067000 -

Brasil (BRL) 3.585300 -

Brunei Dollar (BND) 2.313900 -

Bulgarian Lev (BGL) 2.264800 -

Canada Dollar (CAD) 1.840600 1.834500

Cayman Island Dollar (KYD) 1.248300 -

Chile Peso (CLP) 944.900000 -

Chinese Yuan (CNY) 10.545000 -

Costa Rica (CRC) 822.600000 -

Croatia Kuna (HRK) 8.268000 -

Czech Republic Koruna (CZK) 27.389000 -

Denmark Kronor (DKK) 8.814100 -

Domincan Republic (DOP) 53.202000 -

East Caribbean Dollar (XCD) 4.046300 -

Egypt Pound (EGP) 8.195000 -

Estonian Kroon (EEK) 17.954000 -

Euro (EUR) 1.189500 1.188300

Fiji Dollar (FJD) 2.828100 -

Gambia Dalasi (GMD) 35.546000 -

Great Britain Pound (GBP) 1.000000 1.000000

Hong Kong Dollar (HKD) 12.437100 -

Hungary Forint (HUF) 310.210000 -

Iceland Krona (ISK) 175.885000 -

India Rupee (INR) 73.199000 -

Indonesia Rupiah (IDR) 14920.000000 -

Israel Shekel (ILS) 5.637800 -

Jamaica Dollar (JMD) 110.511000 -

Japan Yen (JPY) 158.520000 163.690000

Jordan Dinar (JOD) 1.103000 -

Kenya Shilling (KES) 115.390000 -

Korea Won (KRW) 2039.900000 -

Kuwait Dinar (KWD) 0.417400 -

Latvia (LVL) 0.805000 -

Lithuania (LTL) 3.781700 -

Malaysia Ringgit (MYR) 5.478800 -

Mauritius Rupee (MUR) 44.572000 -

Mexico Peso (MXN) 21.553000 -

New Zealand Dollar (NZD) 2.666300 -

Norway Kronor (NOK) 9.972600 -

Oman Rial (OMR) 0.598100 -

Pakistan Rupee (PKR) 120.166000 -

Peru (PEN) 4.486000 -

Philippines Peso (PHP) 72.039000 -

Poland Zloty (PLN) 4.107800 -

Qatar Rial (QAR) 5.685100 -

Romania (RON) 4.102700 -

Russia (RUB) 40.147200 -

Saudi Arabia Riyal (SAR) 5.865500 -

Singapore Dollar (SGD) 2.316300 -

Slovakia Koruna (SKK) 34.812000 -

South Africa Rand (ZAR) 14.979500 15.508000

Sri Lanka Rupee (LKR) 165.160000 -

Sweden Kronor (SEK) 11.504400 -

Switzerland Franc (CHF) 1.807800 1.790000

Taiwan Dollar (TWD) 50.003000 -

Thailand Baht (THB) 52.374000 -

Trinidad Dollar (TTD) 9.362000 -

Turkey Lira (TRY) 2.305100 -

U.A.E. Dirham (AED) 5.707000 -

United States Dollar (USD) 1.608400 1.601400

All the above rates, are to the Pound.

I do of course realise, these are Tourist Rates

[bumper]

Anz lets not get confused here, what I agree to is the Baht is being supported as to who they have sex with that just you.

[bumper]

Not good news for us:

GLOBAL FINANCIAL CRISIS
$80-Billion FUND TO protect currencieS
By Bloomberg, The Nation
Published on October 13, 2008


Asian nations to pool foreign exchange reserves


Japan and Korea are pushing ahead with a planned US$80-billion fund aimed at shielding Asian currencies from speculative attacks amid increased volatility in the global financial market.

China and the 10-country Asean will also be key contributors of the proposed fund.

According to a recent meeting of the Asian Development Bank (ADB), Japan, Korea and China agreed to set up the pool of foreign-exchange reserves to be tapped by nations when they need to protect their currencies.

China currently has the world's biggest foreign exchange reserves of $1.8 trillion, while Japan's reserves amounted to more than $900 billion.

China, Japan, and South Korea will provide 80 per cent of the foreign-exchange pool, while Asean will contribute the rest.

South Korea's President Lee Myung-bak last week urged Japan and China to discuss a response to the global credit crisis that contributed to the won's 41-per-cent slump against the yen this year.

South Korean officials have suggested that the countries concerned should speed up the agreement to create the $80-billion currency-protection fund.


Yesterday, Japanese Finance Minister Shoichi Nakagawa said in Washington, after attending a meeting of G-20 finance ministers and central bankers, that he and South Korean Finance Minister Kang Man-soo had agreed to map out details on the planned reserve pool.

Earlier, Kang said South Korea, Japan and China had yet to agree on how much share they will take in the $80-billion fund.

According to Kang, China wants to decide the size of the contribution in accordance with the size of each country's foreign-exchange reserves while Japan wants to use the value of gross domestic product.


South Korea's suggestion is for the three countries to contribute equally, Kang said.

Meanwhile, Japanese Finance Minister Nakagawa said yesterday that the Group of 20 nations had called for bold steps to respond to the financial crisis because it may affect the economies of developing nations.

The financial crisis "stems from the industrialised nations, mainly the US, so it may have a significant impact on the economies in the developing countries", Nakagawa told reporters.

"They want the industrialised nations to handle it responsibly." Earlier, leaders of the world's seven biggest economies or G-7 also met in Washington to discuss measures to prevent the global financial meltdown after stocks plunged worldwide and a global recession loomed.

"The current situation calls for urgent and exceptional action," the finance ministers and central bankers said in a statement.

[aznyron]

Anz lets not get confused here, what I agree to is the Baht is being supported as to who they have sex with that just you.

I am curious git were did the SEX come in to play I said it look like you are starting to agree with me about the bot scamming us but if I misunderstood you just ignore it no more from me
also I see the bot got stronger today since the fed drop % rate what a fuking joke that is let me shut up before I really get pissed

[bumper]

The reference to what they do with their mothers.

They is no doubt the Baht is supported and now it appears that it won't be the only one. The same thing has been happening with the Korean Won.

I do not agree with scamming thieving ECT.

I'm sorry I don't see it has a huge conspiracy I see them doing what they think is best for thier country. The very same thing all countries do. That being said if they are right they will reap the benefits, if they are wrong they will pay the dues. Time will tell.

I don't like it, it does not help my position. In many ways seems illogical to me.

I still view this thread as a place too to learn and the lessons are not over.

I have to tell you there have been times I have been angry to, but it really has never helped me to understand.

Now let explain something to you. I am the one who repsonsible for myself sitting in Thailand getting 34 instead of 44. Not the Thai Government. They never held a gun to my head and made me come here. They have nevre held a gun to my head and made me stay. It was and still is my choice.

We all have choices and some may not be what we want. But, in the end it is still our choice.

For a lot of us our latter years in life are not what we expected. But it's what it is and we all have to do the best with the cards on the table.

Me given the options I'll ride it out here, more positives then negatives. Otherwise the smart thing for me to do would be get out. There would be prices for that. But, I do not balme Thailand or Thai's for that. There are prices fro staying here as well. Each one of us has to make that decesion based on what we can or can not do. What we will gain or what we will lose. If you can't lose whatever causes you to stay then you have to make the best of it.

Striking out against things that you can't change is only going to make you angry and more disasatisfied with your lot in life. Personally for me I hate being angry it is not a good feeling. I really try to avoid it wish I could do it all the time. But that isn't to be.

The people on here have helped me to understand find as much peace with it as I can. I'm grateful for that. My honest belief is we are going into a new world for most of us. I want to understand and adapt the best I can.

[aznyron]

Vietnam Vietnam Vietnam go Vietnam I watch your dong every day great return for the USD
I see your a honest country you let expats buy land & open business with out forcing a Vietnam citizen to own the land or be a 51% partner in a business for a Communist country your practicing free enterprise system very good VIETNAM go show those other S/E Asian countries who practice that B/S and yes hopefully I will be a resident of your wonderful country enjoying your beaches and free enterprise and I do hope it soon adios amigos

[bumper]

Good let me know when you settle in I will visit. Most beautiful beaches I have ever seen

[aznyron]

funny thing happen this morning in Thailand the market in the USA had a great rebound and it was a wonderful day for wall street and guess who benefited the Thai bot it got stronger I did not know the bot was tied to wall street when times are good and not when times are bad Amazing but I must remember tourist season is here
(aznyron)

[bumper]

Central bank mull increased disposal of position in swap market
BANGKOK, Oct 14 (TNA) – Bank of Thailand (BoT) Assistant Governor Suchada Kirakul on Monday revealed the central bank is considering the increased disposal of the central bank's US dollar-denominated holdings in the swap market to ensure that the interest rate in Thai baht terms does not deviate greatly from its real cost.

Speaking after a meeting with local and international bankers to discuss the current global financial volatility, Mrs. Suchada said that irregularity had begun to emerge in the swap market as a result of the US dollar-terms liquidity crunch overseas.

Since the global financial crisis broke out 1-2 months ago, the Thai baht-term lending rate in the swap market had dropped significantly.

In addition, the number of foreign currency-based swap market transactions had dropped sharply.

"The Thai baht-denominated interest rate has declined since it is linked with the future dollar-term interest rate in Singapore and London."

She said that while the US dollar-term liquidity is low, local and foreign banks with liquidity on hand are reluctant to sell the greenback in advance because they are uncertain about the dollar's liquidity in the world market.

As well, they are unsure about the currency exchange volatility and the different cost of the dollar holding by each commercial bank.

It resulted in a demand for the baht selling outpacing that for the greenback.

Mrs. Suchada said that both baht and dollar liquidity remains ample in Thailand's domestic financial market.

However, many investors are reluctant to conduct any business transactions due to global financial uncertainties. So, it seemed the market had closed.

Under the circumstances, importers and exporters might bear higher costs of hedging against Thai baht-denominated risks. (TNA)

Top private banker warns of severe impact from global economic crisis
BANGKOK, Oct 14 (TNA) – The Thai economy is expected to feel the pinch of the global economic crisis late this year and experience a real impact from the turmoil next year, according to a top banker.

Siam Commercial Bank president Kannikar Chalit-arporn said the US financial meltdown will cause the world economy to slow down and definitely have an effect on the Thai economy.

Thailand is likely to be affected late this year and have a more severe impact from the global economic meltdown next year.

The repercussions would be clearer in 2010 as product sales in the business sector are set to decline and exports to grow at a slower pace because economies of key export destinations including the United States, Europe, and Japan will have slowed down.

Simultaneously, the local consumption would continue slowing, resulting in the debt repayment problem and an increase in non-performing loans.

So, she said the bank had closely monitored and suggested its customers to expand investment with caution.

It also told its customers to postpone loan applications and warned them of impacts from the global economic crisis, which would cause incalculable damage.

He said the bank had prepared enough cash for entrepreneurs, who are expected to seek onshore loans instead of offshore ones.

Regarding the domestic interest rate trend, she said the rate is likely to decline in tandem with global interest rates.

However, any interest change depends on Bank of Thailand decisions, she said. (TNA)

Business News : Last Update : 09:37:03 14 October 2008 (GMT+7:00)

[aznyron]

let see what tomorrow news bring us since I am far from the brightest bulb in here I need help in understand what that all about. if I am reading it correctly it telling us the baht will weaken
quite a bit if this is true Happy days are here again if not what else can I say

[bumper]

Asian currencies strengthened today including the baht:

quote]Asian Currencies: Won, Singapore Dollar Gain on Bank Purchases

By Lilian Karunungan

Oct. 14 (Bloomberg) -- Asian currencies rose, led by South Korea's won, as shares rallied worldwide on a U.S.-led push to prop up troubled banks and flood the global financial system with dollars.

Seven of Asia's 10 most-active currencies outside Japan advanced as the U.S. prepared to buy stakes in nine major banks to prevent a collapse of credit markets. France, Germany and three other European Union nations yesterday agreed to commit $1.8 trillion to guarantee loans and buy shares of lenders.

``There's a relief rally for regional stocks and currencies because the market likes the bank recapitalization story,'' said Suresh Kumar Ramanathan, a rates and currency strategist at CIMB Investment Bank Bhd. in Kuala Lumpur. ``The cost of these bank bailouts will be a fiscal crisis down the road. We are certainly not out of the woods.''

The won rose 2.5 percent to 1,208 per dollar as of the 3 p.m. close in Seoul, according to Seoul Money Brokerage Services Ltd. The advance pared this year's loss to 23 percent, still the biggest drop among Asia's 10 most-traded currencies. The Singapore dollar rose 0.7 percent, the most since Sept. 22, to S$1.4615 versus the greenback, according to data compiled by Bloomberg. It touched S$1.4851 on Oct. 10, the weakest in a year.

The won climbed for a fourth day, extending gains in the period to 15 percent, as banks refrained from buying dollars after Deputy Finance Minister Shin Je Yoon said last week that the government will check for ``speculative forces'' in the market. The Kospi index jumped 6.1 percent as foreign investors bought more local shares than they sold for the first time in two weeks, according to Korea Exchange.

Emerging Economies

``The won is gaining lost ground fast as local stocks extended their rally,'' said Lee Myung Hoon, a Seoul-based currency trader with Industrial Bank of Korea. ``The regulator's day-to-day review of currency trades is also making speculators refrain from bidding for dollars aggressively.''

South Korea's Finance Minister Kang Man Soo said global efforts to stabilize the world's financial markets need to include emerging and developing countries.

``We should not forget that emerging and developing economies are suffering the most,'' Kang said today in a prepared speech at the annual meetings of the International Monetary Fund and the World Bank in Washington. Measures such as liquidity provision should ``engage'' these economies, he said.

Stocks Rebound

U.S. stocks staged the biggest rally in seven decades. The Standard & Poor's 500 Index rebounded from its worst week in 75 years with an 11.6 percent advance, its steepest since 1939, and the Dow Jones Industrial Average climbed more than 936 points.

Singapore's dollar climbed the most in three weeks as the Straits Times Index, the city-state's benchmark stock index, advanced 4.2 percent, extending yesterday's 6.6 percent jump.

``It's really a lifeline that has been thrown, which has given people hope it's not going to be doom and gloom,'' said Song Seng Wun, an economist at CIMB-GK Securities Pte in Singapore. ``All of this should be positive'' for Asian foreign- exchange and stock markets, he said.

Indonesia's rupiah, which last week weakened past 10,000 per dollar for the first time in three years, gained for a second day. Indonesia's government yesterday raised the ceiling for bank deposit guarantees 20-fold to 2 billion rupiah ($203,000) to boost investor confidence in the nation's financial system.

`Good Signs'

``Asian and U.S. stocks rose and those are good signs for the rupiah,'' said Lindawati Susanto, head of currency trading at PT Bank Resona Perdania in Jakarta. ``Indonesia also increased the deposit insurance. That's also positive for the rupiah.''

The rupiah rose 0.4 percent to 9,784 per dollar in Jakarta, according to data compiled by Bloomberg. The currency has gained 3.5 percent since reaching 10,130 on Oct. 10, the weakest since November 2005.

India's rupee extended its rebound from a record low reached last week.

``Investors seem to be getting the confidence that efforts of authorities across the globe will help overcome the crisis situation earlier than anticipated,'' said K.V. Mallik, treasurer at state-owned UCO Bank in Kolkata. ``The rupee will benefit from the prevailing sentiment.''

The rupee rose as much as 1.4 percent to 47.5925 against the dollar before trading at 47.8400 in Mumbai, according to data compiled by Bloomberg. It may touch 47.5 in coming weeks, Mallik said.

Sales of Indian shares by international funds exceeded purchases this year by a record $10.8 billion, data released by the Securities & Exchange Board of India show. Net purchases reached an all-time high of $17.2 billion in 2007.

Elsewhere, The Thai baht advanced 0.5 percent to 34.10 per dollar and the Malaysian ringgit was little changed at 3.4976. The Philippine peso was at 47.235 from 47.260 late yesterday, according to Tullett Prebon Plc. Taiwan's dollar was unchanged at NT$32.388 and Vietnam's dong rose 0.1 percent to 16,590.00

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@blooomberg.net;

Last Updated: October 14, 2008 04:39 EDT [/quote]

[bumper]

Slow and gradual movement definetly the best for all concerned. Hopefully we are finished with the drastric moves and the yo yo effect. Really difficult to see whare everythign is going this days. I think we just experienced the an overaction to the econmic plan, and hope full we are settling into to dealing with economies, instead of focus on Fnanacial system disasters and stock markets.

For anyone who didn't catch the Thailand Finance Minister interview on NBT this morning's english broadcast. Very impressive man. explained things in basic terms that were easy to follow. Interestingly enough he feels that the baht may be a bit over valued at the moment. But the BOT controls that not his office. They don't seem to be looking at that aspect in the same way, from the beginning.


He did comparisons to 97 again easy to follow and understand. Supporting the dollar was a mistakes in those days. So I wouldn't be looking for that to happen. There are actually three palnd in place to deal with emergencies. Asia exposure by his estimates are 10% of the U.S. and Europes exposure to financial side of this.

He indicated that about 20% of the Thailand esport market deal with the US and Eurpoe and he expects them to be hit the hardest here. However the 80% range of the export deals with markets not a exposed. There goal is to export everday items such as Tv's refrigerators, parts ect. to them.

If somone else saw the program they can go into more detail.

Now a word of warning there is nothing qouted in what I wrote for a reason, that is how I understood what he was saying. So one thing I'm very consistent at is being wrong. I didn't see a lot of difference in what he was saying them the rest of the world has said. Asia didn't have the exposure that the west did and therefore are in a better position to ride this out. They will have problems but not on the same level.

His views were that Asian currencies will rise. When and how much didn't go that far.

Bloomberg TV Bloomberg Radio Bloomberg Podcasts Bloomberg Press

Asian Currencies: Won, Singapore Dollar Fall on Growth Concerns

By Lilian Karunungan

Oct. 15 (Bloomberg) -- Asian currencies declined, led by South Korea's won, on concern that the U.S.-led efforts to ease a global credit crisis will not avert an economic slump.

Singapore's dollar and the Philippine peso also weakened as Asian stocks declined a day after rallying the most in a decade. The won has fallen 24.8 percent this year, the worst performance among Asia's 10 most-traded currencies, as companies and banks scrambled for dollars to service debt and foreign investors pulled a record $24 billion out of local stocks.

``The recessionary forces that have been unleashed in the recent leg of credit tightening remain well entrenched even as irrational fear over the financial crisis fades,'' said Yen Ping Ho, a currency strategist at JPMorgan Chase & Co. in Singapore, ``The negative growth consequences should weigh on Asian currencies during this quarter and in the first quarter of next year.''

The won fell 2.9 percent to 1,243.50 against the dollar as of 12:40 p.m. in Seoul, according to Seoul Money Brokerage Services Ltd. The currency dropped as much as 3.4 percent to 1,250. The Singapore dollar weakened 0.75 percent to S$1.4710 from S$1.4599 late in Asia yesterday. It reached S$1.4851 on Oct. 10, the lowest level since Oct. 4, 2007.

The Kospi stock index dropped 2.75 percent after rebounding 10 percent from a two-year low in the last two days as governments in the U.S. and Europe announced plans to invest in banks.

Risk Appetite

``The worst may be behind us but the won still remains the most susceptible Asian currency,'' said Dwyfor Evans, a currency strategist with State Street Global Markets in Hong Kong. ``When risk is back on, the won is bought back; when risk is taken off, it is sold.''

South Korea's foreign-exchange reserves dropped in each of the last six months, sliding $24.6 billion to $239.7 billion as policy makers intervened to stem the won's decline and pledged to inject foreign currency into the financial system.

Central banks intervene in currency markets by arranging sales or purchases of foreign exchange.

The Singapore dollar fell, snapping two days of gains, on concern the global credit crisis will prolong a recession in the island.

The city-state's currency dropped to near a one-year low after a government report showed last week the nation entered its first recession since 2002, spurring the central bank to end a policy favoring gains in the currency in an effort to support the economy.

Zero Appreciation

The Straits Times Index, the benchmark stock index, fell 2.2 percent following yesterday's 0.5 percent loss in the Standard & Poor's 500 Index.

The Monetary Authority of Singapore, which relies on the currency rather than interest rates as its policy tool, said on Oct. 10 it's shifting to a ``zero-percent appreciation'' stance. Gross domestic product contracted an annualized 6.3 percent in the third quarter from the previous three months, after shrinking a revised 5.7 percent between April and June.

The Philippine peso fell on concern a global economic slump will reduce overseas employment for Filipinos, curbing remittances that account for about a 10th of the nation's gross domestic product.

The peso snapped two days of gains after central bank Deputy Governor Nestor Espenilla said funds sent home by Philippine nationals working abroad may slow through next year as the financial crisis weakens global economies. The U.S., which bailed out its banking sector to thaw frozen credit markets, is the largest source of remittances and biggest buyer of Philippine exports.

`Cloudy Prospects'

``The prospects for remittances are cloudy because of what's happening in world economies, which could lead to a lot of Filipinos losing their jobs,'' said Catherine Tan, head of foreign exchange at Thomson Financial Asia in Singapore. ``A drop in remittances will affect dollar inflows and also hurt economic growth.''

The currency fell 0.6 percent to 47.507 in Manila, according to Tullett Prebon Plc. The currency, which reached an 18-month low of 47.82 on Oct. 10, may weaken to 50 by the end of the year, Thomson's Tan said.

Overseas remittance growth may slow to 15 percent this year from the 18 percent gain in the first seven months, Espenilla said yesterday. Money sent home by Filipino nurses, helpers and seafarers overseas may drop for the first time in eight years in 2009 as major economies slip into recession, he said two days ago in an interview.

Elsewhere, the Malaysian ringgit dropped 0.5 percent to 3.5104. The Thai baht fell 0.2 percent to 34.10 and Taiwan's dollar was at NT$32.397 versus yesterday's NT$32.388. The Indonesian rupiah weakened 0.1 percent to 9,780 and Vietnam's dong was little changed at 16,595.

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@blooomberg.net;

Last Updated: October 15, 2008 00:11 EDT

[aznyron]

I just love the part he said the baht is over valued it brought a smile to my face since I have been smelling a rat for a long time now let see what they do about it he also said they don't control the baht well then who does since it is over valued by his admission

[Galee]

Looks like they are thinking about devaluing the Baht.

(BangkokPost.com) - Finance Minister Suchart Thadathamrongvej said he would like the baht currency to depreciate by five percent to help stimulate the export sector and shoulder the economy in 2009.

The economic growth for next year should stay at four percent or lower while the export growth would be no more than 10 percent due to the global economic crisis, he said.

The minister said he will discuss the devaluation of Thai baht with Deputy Prime Minister Olarn Chaipravat, who is in charge of overseeing the national economy.

Source:Bangkok Post

[BobHelm]

Um... 5% Galee. Baht currently 58.65 to GBP. Devalue by 5% gives you 2.93 baht making the new rate 61.58. OK, a step in the right direction for me, still not earth shattering or anywhere near 67 but I guess that just reflects what is happening to the GBP rather than anything else..

[aznyron]

so what will be the out come for us who exchange our money can some one give example like 35 to 1 USD
or 70 to 1 GBP I like the news but I would like to plan so I can get some of my money back I lost over the past 2 1/2 years

[BobHelm]

Ron Baht/$ is currently 33.87.(From front page of udonmap)
5% is 1.69
So new rate would be 35.56

[aznyron]

thank you Bob that would be a welcome change

[bumper]

The finance minister has wanted this for some time now, depends on if he can convience the BOT. But they could be more open to listening now. SCB is showing 34.13 at the moment.

This is intersting it's actually from a few days ago, could these two entites actually be talking trying to find a direction. If they cut the rates and our home countries don't then the baht should go down. At least that is how it's supposed to work. But these days who knows.

Thai Economic Growth May Be Slowest in Eight Years (Update2)

By Rattaphol Onsanit and Suttinee Yuvejwattana

Oct. 17 (Bloomberg) -- Thailand's economy may expand at the slowest pace in eight years as political squabbling curtails domestic spending and exports cool amid waning global demand, the central bank said.

Southeast Asia's second-largest economy will grow between 3.8 percent and 5 percent in 2009, Assistant Governor Duangmanee Vongpradhip said in Bangkok today.

Demand for made-in-Asia exports is weakening as the economies of the region's biggest customers in the U.S., Europe and Japan slow. The International Monetary Fund last week forecast the world's advanced economies will expand next year at the weakest pace since 1982, stifling growth in emerging nations and strengthening the case for an interest-rate cut in Thailand.

``I'm surprised they've lowered the growth range into the 3 percent area,'' said Julia Goh, an economist at CIMB Securities Sdn. in Kuala Lumpur. ``If they have the feeling that growth will be worse than forecast, they are likely to cut the rate next year.''

Thailand's SET Index of stocks fell 0.2 percent to 477.03, reversing an earlier gain of as much as 2.3 percent. The baht gained 0.1 percent to 34.24 against the dollar, paring an earlier advance of as much as 0.3 percent.

`Cut Could Happen Soon'

The Bank of Thailand may need to buoy the economy by cutting its interest rate from 3.75 percent before its next scheduled meeting in December, Alvin Pontoh, an economist at Capital Economics Ltd. in London, said before today's report. Governor Tarisa Watanagase said Oct. 12 that the rate remains supportive of growth.

``We now anticipate a much weaker profile for global growth and that should hit Thai exports pretty hard next year,'' Pontoh said. ``A rate cut could happen soon.'' He predicts borrowing costs will fall to 2.5 percent by the end of next year.

Thailand's economy may expand as little as 4.3 percent this year, the central bank's Duangmanee said. That follows 4.8 percent growth in 2007.

``Demand from the private sector is slowing as consumer confidence is falling,'' Duangmanee said. ``This is happening as political uncertainty drags on and the global economy is in crisis.''

Fraud, Graft

Thai Prime Minister Somchai Wongsawat said he'd respond to army Chief Anupong Paojinda's call for him to quit as protesters marched through Bangkok today demanding his resignation. Somchai faces growing pressure to step down or call a fresh election 10 months after his party won the first contest since the military ousted his brother-in-law Thaksin Shinawatra in 2006.

His People Power Party faces a ban for election fraud and an anti-graft body accused him of misconduct when he was serving as a bureaucrat nine years ago. Anupong said yesterday that Somchai should resign to take responsibility for deadly clashes between police and protesters on Oct. 7 that left two dead and more than 400 injured.

Exports, which make up 70 percent of gross domestic product, may expand as little as 7 percent in 2009, slowing from this year's predicted pace of as much as 23 percent, the central bank said.

Slowing shipments and diminishing demand for Thai assets amid political squabbling and legal challenges against the government may erase the current-account surplus. The central bank predicted a 2009 surplus of as wide as $3 billion next year, following a forecast of an excess of as much as $4 billion in 2008.

The inflation rate may fall to as low as 3 percent next year amid lower prices of oil, rice and rubber after averaging 6 percent to 6.5 percent this year, the central bank said.

To contact the reporters on this story: Rattaphol Onsanit in Bangkok at ronsanit@bloomberg.netSuttinee Yuvejwattana in Bangkok at Suttinee1@bloomberg.net

Last Updated: October 17, 2008 04:47 EDT

[arjay]

A quote from the Bangkok Post about the value of the baht:

http://www.bangkokpost.com/breaking_new ... ?id=131529

Suchart: Baht devaluation can help exports

(BangkokPost.com) - Finance Minister Suchart Thadathamrongvej said he would like the baht currency to depreciate by five per cent to help stimulate the export sector and shoulder the economy in 2009.

The economic growth for next year should stay at four percent or lower while the export growth would be no more than 10 percent due to the global economic crisis, he said.

The minister said he will discuss the devaluation of Thai baht with Deputy Prime Minister Olarn Chaipravat, who is in charge of overseeing the national economy.

However, Bank of Thailand (BoT) governor Tarisa Watanagase said the central bank will carry on keeping the value of Thai baht to be in line with other regional currencies.

She said foreign investors were selling off their shares to support their mother companies in Europe and the United States, causing the Thai currency to weaken.

According to the BoT chief, keeping the value of baht to the same level as other currencies in Asia would not cause Thai exporters to be at a disadvantage. However, they should adjust themselves by expanding and improving their investments.

The baht on Monday was little changed at around 34.4 per US dollar.