Baht What up with Dat?????

[mortiboy]

"apology for the IZZIX"........No problem I just dont read it :-"

[bumper]

Intersting day there for awhile dollar down and baht down at the same time go figure.

[aznyron]

Git I read part of the article and it seem to me that they are holding a stick of dynamite in there hands
and the fuse is getting very short so they better pull the fuse before it blows up in there face
and that is devalue the baht and play by the rules by not trying to over in flatted because to much B/S will also cause it to blow

[mortiboy]

Very nicely put Ron.Yes sum's it up.
Seems to me Thai government want be self sufficient.To hell with exports!Thai people will survive with little or nothing.They are accustom to it. Everyone keeps saying the sh.t will hit the fan and Thailand will go down the pan,But It IMO it wont happen.

[TJ]

The global governments are abandoning the few sound economic policies they pledged in order to pander to special interests and expand State power and control. Nothing less is to be expected.

"Only a few weeks after world leaders vowed at a Washington summit to reject trade protectionism and adhere to free-market principles as they combat the global financial crisis, a host of nations are already breaking that promise.

Moving to shield battered domestic manufacturers from foreign imports, Indonesia is slapping restrictions on at least 500 products this month, demanding special licenses and new fees on imports. Russia is hiking tariffs on imported cars, poultry and pork. France is launching a state fund to protect French companies from foreign takeovers. Officials in Argentina and Brazil are seeking to raise tariffs on products from imported wine and textiles to leather goods and peaches, according to the World Trade Organization.

The list of countries making access to their markets harder potentially includes the United States, where critics are calling the White House's $17.4 billion bailout of the U.S. auto industry an unfair government subsidy that would put foreign competitors at a disadvantage."

http://www.msnbc.msn.com/id/28344688/

[aznyron]

it is my understanding that the USA is the biggest importers of all foreign goods now with the clamp down on imports putting tariffs on them we will feel the crunch here at the super markets. we are already paying high prices for things like cheese and other products from the USA it also my understanding that Thailand exports more goods to the USA than to all the countries combined so I guess Thailand export business is dead in the water since they stated killing it 2 years ago by inflating the baht I just
don't know were they are going with this pride thing if they were so proud then they would be honest
my name is more important to me than being right I would rather be told I was wrong than I was a thief
some thing to think about.

[laphanphon]

usa will never enforce same tariffs/restrictions as on other countries, as it is one of the only friendly faces it has, for a price, in SEA. yanks are extended 1 or 2 perks, but that's about it. thailand needs a billion bucks, no problem, no questions. past, present, and future of Thai/usa relations will not change. from changes in gov't, to fundamental freedoms or abuses, like israel, thailand is given a hands off/no negative press policy, all is good, no problems here.

[bumper]

Interestingly enough an article in the Thai newspapers a few days go said Obama is leaning that direction. Ver different tiem we are in so hard to say waht is going to ahppen.

I still saw the dollar and the naht dropping at the same time on Bloomberg today. showing the dollar down against the u eoro and 34.60 on the baht exchange. Now that is a surprise.

So yuo Euro guys should be doing pretty good today.

But I haven't looked in the lat ten seconds all may changed by now. What a world. You know if I had money this would be about the time I would invest and lose my shirt

[stattointhailand]

Interestingly enough an article in the Thai newspapers a few days go said Obama is leaning that direction. Ver different tiem we are in so hard to say waht is going to ahppen.

I still saw the dollar and the naht dropping at the same time on Bloomberg today. showing the dollar down against the u eoro and 34.60 on the baht exchange. Now that is a surprise.

So yuo Euro guys should be doing pretty good today.

But I haven't looked in the lat ten seconds all may changed by now. What a world. You know if I had money this would be about the time I would invest and lose my shirt

Hey git, were you suffering from a bit of "Leftidigits workus quicker than righthandi" during that last post?

[bumper]

That is a constant, you should doc my pay.

[stattointhailand]

Yeah, I noticed it with the "Blind WAREMELLONS" as well

[bumper]

[bumper]

Same T problem today

Bloomberg is showing the baht at 34.62 at the moment. Dollar is going back up and so is the is the pound, strange times.

They just interviewd the new Finance Minister on Bloomberg he is goign to try to inceae this years budget by 80% that is a bunch. I was wondering if this govenment will finish the current term turns out thats three years. Thats a long time I really don't know.

[aznyron]

Git Thailand has a new F/M ? if so I do hope he does the right thing to help his country not his pocket book

[bumper]

YEs and time will tell

[bumper]

Doesn't sound like the money folks are going to like him much.

Korn dampens tax break hopes
Finance Minister says focus will be spending
By: Wichit Chantanusornsiri and Chatrudee Theparat
Published: 24/12/2008 at 12:00 AM
New Finance Minister Korn Chatikavanij has played down hopes of new tax breaks, saying yesterday that the government would instead focus on raising state spending to jump start the slowing economy.

Finance MinisterKorn Chatikavanij is flanked by deputies Pradit Pataraprasit (left)and Dr Pruektichai Damrongrat as they enter the ministry on their first day of work yesterday. CHANAT KATANYU
Mr Korn, on his first day of work yesterday, said that lowering corporate tax rates from the current 30% was a key policy of his Democrat Party.

"But the economic situation has changed considerably over the past 12 months, particularly the country's fiscal position," he said.

"Tax revenues are now expected to fall short by at least 130 to 140 billion baht, or by 10% from targets."

His immediate predecessor, Suchart Thada-Thamrongvech, had pushed for a new corporate tax rate of 25% to ease pressure on local firms. The Somchai Wongsawat government fell before the policy could be enacted.

Mr Korn insisted that increasing state spending would have a greater benefit for the country than tax relief.

Prime Minister Abhisit Vejjajiva has indicated that his government could push for a larger supplementary spending budget than the 100 billion baht proposed by the Somchai government.

Mr Korn yesterday declined to offer details, saying only that the government would finalise a stimulus programme by next month.

The supplementary budget, which would complement the existing 2009 fiscal budget, calls for expenditure of 1.835 trillion baht and a deficit of 249.5 billion. Current law limits additional deficit spending to 180 billion baht for the fiscal year ending in September 2009.

Mr Korn, a former head of JPMorgan Chase in Thailand, said that additional state spending would focus on job creation and alleviating the financial pressure on households from more expensive goods and services as well as increasing the country's overall competitiveness.

Stimulus measures implemented earlier this year to contain household expenses when energy prices were soaring could be continued by the Democrat-led government.

The programmes, which are due to expire over the next few weeks, include free water and electricity for small households, free bus and train rides for commuters and excise tax cuts for fuel.

But Mr Korn said the tax cut of three baht per litre for petrol was unlikely to be extended, considering that crude oil prices have fallen by more than 75% to just US$40 per barrel compared with nearly $150 earlier this year.

"We are concerned about the economy, but also about the country's fiscal position. Revenues are not meeting targets and it is already necessary to run a budget deficit," he said.

"This in turn reduces the government's flexibility in addressing the economic problems."

At Government House, Mr Abhisit said that economic ministers would meet each Monday to discuss policies.

Mr Abhisit, who will chair the government's economic team, said priority areas were unemployment and the agricultural, tourism, export and property sectors.

He said that assistance for the tourism sector would include financial aid and tax breaks. Foreign tourism arrivals have fallen sharply following the closure of Suvarnabhumi Airport at the peak of the holiday season.

In addition, new state investment programmes will focus on education, public health, mass transit and water management. State enterprises would also be urged to accelerate investment to improve the country's logistics networks.

Alongkorn Pollabutr, the deputy commerce minister, said a "Team Thailand" would be appointed to help revive the export sector, with a rehabilitation and stimulus programme to be announced next month.

Exports in November tumbled 18.6% year-on-year to $11.87 billion, due partly to the airport closures late last month and to falling demand due to the global recession. It was the first monthly decline in exports in six years.

[JimboPSM]

As market trading (currencies and stocks) will be “very thin” over the next couple of weeks any movements (up or down) will be even less reliable than usual as any kind of indicator of where the markets may be going.

Merry Christmas and (dreaming of) better exchange rates for the New Year

[bumper]

Merry Christmas Jimbo hope you had a good trip back.

It's interesting to watch, now the blame on the couterfit bills floating around, before the airport, before that Government house. No doubt they didn't help anything.

But the reality a world wide recession and all the fancy plans to get tourist in, are not going to work. If a person doesn't have the money for a trip it doesn't mater what you have to show them.

I noted an interesting plan on TAT the one that stood out to me a 5% discount on a five star location.

Ron pack you bags Vietnam is devauling the Dong

The sooner Thailand get through the political unrest and recognizes the true problems the sooner they can go about doing the right things.

I'm not ploiically motivated at all, but yuo can't understand the economics of Thailand without paying attention to it. The new PM made the statement that he saw things worse then 97. That tells me he is serious adn know there is more to it then Politics. That is a good thing for Thailand, now will he get cahnce I have no idea, hard to be bored here.

[bumper]

Nice Little Christmas Present:

Yuan, Taiwan Dollar Advance; Thai Baht Slips on Exports Concern
Email | Print | A A A

By Judy Chen

Dec. 25 (Bloomberg) -- China’s yuan gained for a third day against the dollar on speculation the central bank won’t weaken the currency to boost the export-oriented economy. Taiwan’s currency advanced and the Thai baht fell.

The People’s Bank of China set a stronger reference rate for yuan trading for the first time in five days, signaling it’s aiming to maintain currency stability. The Taiwan currency rose for a second day on speculation falling oil prices will curb demand for U.S. dollars. Local markets in South Korea, India, Indonesia, the Philippines, Malaysia, Singapore and Hong Kong were closed today for Christmas.

The yuan climbed 0.11 percent to 6.8319 a dollar as of 2:37 p.m. in Shanghai, from 6.8397 yesterday, according to the China Foreign Exchange Trade System. The Taiwan dollar strengthened 0.3 percent to NT$32.946 against its U.S. counterpart, according to Taipei Forex Inc.

“A weaker currency would prompt hot money to flow out of China, so the government will most likely keep the yuan stable,” said Huang Yi, a foreign-exchange trader at Guangdong Development Bank Co. in Guangzhou. “Trading volume is so light today that market movements sometimes tend to be skewed.”

Commerce Minister Chen Deming said China won’t count on depreciation to ease a slowdown in export growth, the Communist Party newspaper People’s Daily reported yesterday. The yuan has advanced 6.9 percent this year, the best performance among the 10 most-active currencies in Asia outside Japan.

The yuan is allowed to trade by up to 0.5 percent against the dollar either side of the so-called central parity rate, which was fixed at 6.8366 today.

Oil Prices

Oil in New York fell after a report showed an increase in U.S. supplies of gasoline. The price has plunged 76 percent since hitting a record $147.27 per barrel on July 11. Taiwan imports more than 99 percent of its crude oil needs, and petroleum refiners pay for their shipments mostly in U.S. dollars.

“Falling oil prices reduce import costs and help the Taiwan dollar,” said Michael On, president of Beyond Asset Management Co. in Taipei.

Vietnam devalued its currency by 3 percent today to help exporters after a report showed the economy grew at the slowest pace in nine years.

Devaluation

The State Bank of Vietnam fixed the reference rate at 16,989 dong per dollar, versus 16,494 yesterday, it said on its Web site today. Policy makers maintained a currency band that allows the dong to rise or fall 3 percent a day, said Nguyen Quang Huy, director of the regulator’s foreign-exchange department.

The dong traded at 17,250 to 17,499 a dollar after the central bank’s decision, according to Hanoi-based Lai Tat Ha, head of currency trading at Vietnam Technological & Commercial Joint-Stock Bank, also known as Techcombank.

Gross domestic product rose 6.23 percent in 2008, the least since 4.77 percent in 1999, the government said late yesterday.

“The Vietnamese dong is facing downward pressure due to the current-account deficit,” said Yuichi Izumi, an economist at Nomura Securities Co. in Tokyo. “And the State Bank wants to guide the dong lower to support the export sector.”

Thailand’s baht fell for a fifth day, declining 0.3 percent to 34.76 a dollar, on concern the global financial crisis will hurt exports.

“The baht is likely to weaken gradually from here,” said Nizam Idris, a currency strategist at UBS AG in Singapore. “The main driver for the currency is its current account which is still looking negative.”

It may weaken to 36 by the end of March, Nizam said.

Thai exports in November contracted the most in at least 17 years as recessions in the U.S., Europe and Japan curbed demand and political protests forced the closure of the country’s main international airports.

Gross domestic product may drop in both this quarter and the next, finance ministry spokesman Somchai Sujjapongse said in Bangkok yesterday. To contact the reporters on this story: Judy Chen in Shanghai at xchen45@bloomberg.net

Last Updated: December 25, 2008 01:57 EST

[lepidoptra]

Just over 1 year ago I spoke to a financial ( so called export ) who predicted that the Thai baht would strengthen and the UK pound would fall, He predicted 40 baht to the pound. I laughed and dismissed his comments. I'M NOT LAUGHING NOW