Baht What up with Dat?????

[JimboPSM]

Clarifying my comments yesterday on the “appearance” of Thailand supporting the USD - they were based only on the percentage movements which were much lower against the USD than other currencies even though it was a major US operation that failed.

Again today, although there was a fairly substantial gain against the USD, the gains against other currencies were higher.

There are so many rumours flying around out there at the moment (e.g. yesterday within a few hours I heard different commentators saying that US interest rates would increase, stay the same or fall – so which does one believe?) trying to line up the movements with the rumours is impossible - it will take quite some time for the fallout to settle.

One thing that I noticed while trawling numerous sites yesterday was speculation based on an initial creditors listing that the heaviest losses from Lehman will actually fall in Asia not the US or Europe (I did not see any reference to a major exposure in Thailand).

AIG, the next major outfit drowning in (or should that be poisoned by?) toxic paper has substantial worldwide interests but whether that translates into another major worldwide creditor exposure if it fails remains to be seen.

[JimboPSM]

What is the basket of currencies that the Baht is tied to......

I thought that I had read on the BoT site what currencies were included in the basket but I can't find it on the new website, the closest (but not very helpful) reference I can find on their new site now is that:

it comprises currencies of important trading partners - and not just the US Dollar

[laphanphon]

every time thailand screws up and the baht goes in the right direction, Bushenomics comes back to screw it up. apologies to the rest of the world that we affect

[aznyron]

well they jump on the opportunity to strengthen the bot hopefully it will only be temporary
I am looking forward to the day when the bot crashes & burns my smile will be so large my face will crack

[bumper]

Well they bailed out AIG and didn't change the rates.


You know there is still one thing I can't get my mind to accept. lets say over this mess they bought a billion dollars. Surely they must have put that money to work somehow.

So there they sit with this money gaining value. Inflation with oil moving back down, the conmodities following eventually that should bring the cost of food and everything else down. So it is pretty much becoming a non event.

So they have an asset thats is gaining value, where is the benifit on making that asset less valuable?

[JimboPSM]

The last two days has seen an increase in the spread between the buy & sell rates on electronic transfers from 0.20 THB per USD to 0.25 THB per USD at Bangkok, Kasikorn & Siam Commercial Banks (I've not checked the others, but I suspect they will all be the same).

Hopefully this is only a temporary movement by the banks to reduce their own exchange rate risk while the current level of market volatility is "elevated" - this has happened before.

From a historical perspective the spread was 0.15 for a good number of years until December 2006 when there was another volatile period in the markets, when that settled down somehow they forgot to return the spread back to 0.15 and basically (with only four exceptions totalling seven days) the spread has been 0.20 ever since until yesterday.

[bumper]

Well gentlemen things are not looking real good today. But tomorrow is a new day. Today we are happy we are have a new P.M. Tomorrow a pro government demostration planned. With advance notice that they have 100 armed people, who will evict the PAD form Government house if the cops don't. Are they telling the truth who knows, we will know tomorrow won't we.

All day the stock market and BOT folks adn any governnment official, they could corner has been saying things are going to be peachy keen, now that we have a new P.M. I don't hink they even believe it themselves and certainly haven't convienced a foriegn correspondent yet.

How injecting more money into a system tha won't loan is goign to solve anything I just don't know.
A bloomberg report pointed out tonight, thaqt the worse thing the consumere could do right now is borrow more money. They can't pay their current bills. Good point isn't it?


Still throwing out the old mega project talk, fact is that is a leftover from the Thakisin era over three years ago and no body has done a thing except talk. PAD has already said they will fight it tooth and nail. Investors wan to see improvments in the infra structure.

The outside world seems to say that under the circumstances the Thai economy is doig OK, bu they also see no short term reslution, and certianly a chance of this becoming violent. All that info today. Man if anyone can call this one thery are sure a darn sight sharper then I.

Well I hope they don't take their guns to town

Asian Currencies: Won, Taiwan Dollar Weaken as Stocks Decline

By Lilian Karunungan and Kim Kyoungwha

Sept. 18 (Bloomberg) -- Asian currencies fell, led by South Korea's won, on speculation turmoil in global financial markets will worsen, prompting investors to shun emerging-market assets.

Seven dropped among Asia's 10 most-active currencies outside Japan as stocks in the region tumbled to the lowest in three years. Morgan Stanley is considering a merger with Wachovia Corp. and other banks as the securities firm seeks to regain investor confidence after its shares sank 42 percent this week, according to people familiar with the situation.

``A lot of investors will keep pulling out because liquidity is a problem in the U.S. and to a certain extent in Japan,'' said Nikhilesh Bhattacharyya, a Sydney-based economist at Moody's Economy.com Inc. ``This has a lot to do with sentiment and stocks will keep going down.''

Korea's currency fell 3.2 percent to 1,153.30 against the dollar as of the 3 p.m. close in Seoul, according to Seoul Money Brokerage Services Ltd. The won surged 3.9 percent yesterday, the most since March 1998, after the biggest post-Asian crisis drop of 4.4 percent one day earlier. The Taiwan dollar fell 0.4 percent to NT$32.218 against the U.S. currency, according to Taipei Forex Inc.

The won slumped 19.1 percent this year, making it Asia's worst performer, as foreign investors sold more Korean equities than they bought every day except seven since Aug. 1.

Dollar Shortage

``The U.S. credit crisis is still under way and the won will remain under depreciation pressure due to a shortage of dollars,'' said Chun Chong Woo, an economist with Standard Chartered First Bank Korea Ltd. in Seoul. ``For the time being, the currency market will see big volatility.''

Vice Finance Minister Kim Dong Soo said yesterday that South Korea may use its foreign-exchange reserves to provide liquidity to the financial system when needed.

``We will actively consider providing foreign currency liquidity to financial institutions through the swap market if necessary by using our currency reserves of more than $240 billion,'' Kim said on KBS radio, adding that the U.S. financial turmoil will have a limited impact on South Korea.

Japan, Australia, Hong Kong and South Korea today injected about $30 billion into money markets to keep the credit crisis from spreading beyond the U.S. and Europe.

Taiwan's dollar dropped to near an eight-month low as the Taiex index fell 2.7 percent, extending this week's losses to 10.6 percent.

``I expect further upside in the U.S. dollar against Taiwan's currency,'' said Irene Cheung, who supports regional trading at ABN Amro Bank NV in Singapore. ``The Asian stock markets continue to be vulnerable because of extreme risk aversion among investors. They're not sure if even their banks and insurance companies are safe.''

Risk Aversion

Overseas investors sold $2.8 billion more Taiwan shares than they bought this month, stock exchange figures show.

India's rupee traded near the lowest in more than two years as net sales of local equities by funds based abroad this month through Sept. 16 were four times as large as in the whole of August, according to data from the Indian stock market regulator.

``Risk aversion is increasing as investors are foreseeing a more difficult situation in the near term,'' said Sanjay Arya, treasurer at state-owned Bank of Maharashtra in Mumbai. ``Indian assets are clearly not the priority and so a further decline in the rupee is inevitable.''

The rupee fell 0.6 percent to 46.625 in Mumbai, according to data compiled by Bloomberg. It fell as low as 46.975 on Sept. 16, the weakest since July 24, 2006. The rupee may fall to 47 in the near term, Arya said.

The Indian currency is Asia's second-worst performer this quarter, having dropped 7.7 percent versus the dollar. South Korea's won slumped 9.2 percent.

Elsewhere, the Singapore dollar gained 0.2 percent to S$1.4322 against the U.S. currency and the Thai baht rose 0.7 percent to 34.11. The Philippine peso was little changed at 46.96, according to Tullett Prebon Plc. The Malaysian ringgit weakened 0.1 percent to 3.4595, while Vietnam's dong dropped 0.2 percent to 16,640.

To contact the reporters on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net; Kim Kyoungwha in Beijing at kkim19@bloomberg.net

Last Updated: September 18, 2008 04:56 EDT

[bumper]

Bloomberg has ran an entire week looking closely at Thailand really pretty mixed stuff. It seesm they now a fulltime corresposndent stationed in Bangkok.

Today the interviewed the builder od the new Marina complex in Phucket it was intrewting. He made his money in mobile phones. So he is continuing on with his project. Well first of all he lived in Thailand for over 20 years, Therefore the so political mess is nothing new to him. Never forget that Mr. Thaksin was the only PM in Thailands history to finish a term in office. He didn't make the second but he did the first. So waht we see today is really business as usual. Secondly he using no bank financing hi own money exclusively. He n made it vrey xclear that if he has to rely on banks he would have to stop the project. So a succesful Thai investor, who happen to be seriously rich farrang.

The second guy they interviewed wa the CEO of Hana Micro Electronics, a Thai. He said is business is doing OK, that the recent deprecation of the baht, gave him some breathing room. The company makes micro chips for cell phones. It is an ellaborate operation and a good source of good employment for Thai's Makes chips for biggy's like Nokia. He expressed concern about tow area of his business. One the poiltical side, he has lost a few customers because of fear of not being able to ship products and making business trips here. In the end I don't think anyone cares who the PM of Thailand is, but they do care about getting product on time to complete their operations.

The second aspect is the global economic system, I can see that seesm like every other day a Thai is buying the lastest and best with phones. Thank goodness they dont realy on me, I still have the one I bought six years ago.

So if people are hurting for money will the keep buying the latest and greatest, I don't think so they will go back to talking on a phone which is what it really was made for in the first place. There will be still be some out there that can play that game. But for the most part I see return basics.

Why is thi in this thread, becasue the man is a success and he is saying he needs a lower valued baht to achieve more success. Might be time for the government to listen to the people who things instead of talking about them. Now this is money to Toyota or whatever, it doesn't go in the export ledgers and then leave the country. This is pure export for Thailand and the money remain here.

Political side

Just read an article no honeymoon for PM. The Pm's position PAD is unreasonable and won't talk. That is probably true. But, on the same token they avoided any question about ammending the Constitution, that is what started this in the first place. why is that something as imporatant as that can't wait to have solid thought and input put into, so it becomes the final Constitution? That can flow with the changes of times with simple ammendments. I will leave it up to everyone to asnwer that question themsleves.

Until that issue is dealt with no there are going to be no talks.

so in the end where are the exchage rates heading got me.

[bumper]

Unfortuantely you have to watch this to uderstand the baht situation here. This doe not look like good news for Thailand to me, matter a fact asking to sitting a 50 gallon drum on top of a fire sooner or later it will explode.

Unless things are very differnt a bunch of unarmed cops are not going to stop the DAAD tonight, My understanding is the gathering has already started I don't look for much to happen until Lao Kao and yabba have been consumed. But the fact is these two groups have went at each o other twice already. I hope the DAAD stay at the bridge but I'm not betting on it. Thsi may be good for my rate of exchange but I can do without a few baht, rather then see this happen.

In watching Bloomberg the week Thailand has 285 Billion Dollars to play this sell the dollar game, so I'm not hoping for a lot real fast. I think they will take it as far a they can and that kind of capitol tha could be long ways. The stakes are far higher then jut money. The Bangkok Post is flat saying who is calling the shots

Thaksin 'still boss'

Post Reporters

A People Power party envoy is believed to be on his way to London to submit the potential line-up of the Somchai Wongsawat cabinet for the perusal of former prime minister Thaksin Shinawatra.

Yongyuth Tiyapairat, a former deputy leader of the People Power party, has been ordered to Britain by new prime minister Somchai Wongsawat to update Mr Thaksin on the political situation and seek his advice on allotment of cabinet seats, a source in the PPP said.

Some changes could be made to the proposed line-up based on his advice.

The report of the list being delivered to London came after His Majesty an individual on Thursday endorsed the nomination of deputy PPP leader Somchai Wongsawat as the new prime minister.

The royal command appointing Mr Somchai was accepted by Parliament President Chai Chidchob who was granted an audience with an individual to nominate Mr Somchai at Klai Kangwon Palace in Hua Hin.

The source said the line-up has yet to be finalised. It is being prepared by core party members, including Mr Yongyuth and deputy PPP leader Sompong Amornwiwat and is expected to be finalised on Sunday, before being readied for royal endorsement.

The source said attempts are under way to weaken the political clout of former Thai Rak Thai executive Newin Chidchob who commands the rebellious Friends of Newin faction in the PPP.

The faction, which has 73 MPs under its wing, opposed Mr Somchai's nomination but then had a change of heart.

The source said Mr Sompong is likely to be moved from the Justice Ministry to the Interior Ministry, where he is expected to challenge Mr Newin's clout.

It is also reported that the Friends of Newin faction will lose the seat being held by Supol Fongngam, deputy interior minister.

The post is not in the quota held by the Friends of Newin group as claimed, said the source.

Rifts over the allocation of cabinet seats in the faction are also emerging.

Chaiya Promma, a member of the Friends of Newin group, said the four ministers in the group's quota should be changed. The group should meet to discuss candidates for the cabinet posts.

"If the four ministers retain the seats, there will be problems. I call for changes so that we can compare their performance," he said, adding some MPs have been lobbying others to support them for cabinet portfolios.

A group of 40 PPP MPs, meanwhile, signed a petition to block Puea Pandin leader Suvit Khunkitti from joining the cabinet. Their move follows speculation he will be named industry minister.

PPP MP for Lop Buri Suchart Lainamngern, said the party MPs question Mr Suvit's loyalty, citing the Puea Pandin leader's pullout from the Samak Sundaravej government in late July.

Chaiyos Jiramethakarn, spokesman for the Puea Pandin party, shrugged off the campaign, saying the move did not create conflict, although it might have spoiled the atmosphere.

He also criticised the PPP for meddling in Puea Pandin's affairs.

PAD core leader Chamlong Srimuang said Thursday that the PAD would continue its protest and would not negotiate with Mr Somchai.

Sondhi Limthongkul, another PAD core leader, said he would unveil the PAD's proposal for a new political order on Monday, and clear any questions over the issue.

PAD coordinator Suriyasai Katasila said the group has agreed on three points — the protest will continue without any negotiations with the government, it will oppose constitution amendments and it will push for a new political order.

Following royal endorsement, Mr Somchai promised to work to achieve national reconciliation and unity.

Quoting Mr Chai, he said an individual urged the quick formation of a new cabinet to tackle the country's problems.

He said the government expects to deliver its policy statement on Sept 25.

[bumper]

I'm very happy to say tha last night was a non event. Maybe there will be a honeymoon period. That might give sometime for reality to setlle in and things getting back closer to normal. I think that would be a good thing. Although there was a threat in refrence to moving the PAD out on October 10Th. Things were done very differently last night.

14 company's of poilce and soldiers deployed in the sqirmish lines, first two lines Sheild and batons third line all the riot equipment. They meant busines this time and stood a chance, New Sheriff in town =D>

It might have been the honeymoon period and it might be clearer thinking time will tell. If it's clearer think it might just extend beyond this apect.

[aznyron]

what I don't understand and I do mean I do not understand is how the bot could remain strong
when thailand has internal problems that go all the way up to the P.M that one issue
now for the second there is bombings and riots on the streets and tourism is being cancelled
and factories have closed & not reopened as of yet so what am I missing ? the USA or the UK farts
and it little smelly and the next thing the bot gains but when the ---- hits the fan in Thailand very little if any change in the bot so to me I smell a rat or a scam am I wrong or am I in state of denial

[bumper]

Ron the easiest way to understand it is Thailand is taking care of Thailand. They had a set of marching orders before. With a new Sheriff they may get a new set of marching orders and they may not. Have to wait and see.

I saw one thing that might have something to do with it and it may not since I'm guessing and don't really understand the approach myself. In August Thailand had an import export deficate for the first time in a very long time. That is not a surprise with the cost of commidities being what they were in August. So getting more bang for the baht, seems a logical approach. Doesn't fit for what yuo and I want, but it did fit for what Thailand wanted.

If you haven't noticed other countries in the region are beginning to support their currencies. The world not just Thailand is in turmoil, the states have started the printing presses big time. The more of that currency hits the market, in normal times would mean it would have less value. The dollar is no longer backed by gold, so we are borrowing our children's future at the moment. Problem is these are not normal times and it will probably take at least two years to see how this all shakes out.

Thailand is Smaller then California as is it's economy, you can not just look at Thailand and the states and come close to understanding it. California based on what my firends who live there have told me is on the verge of Bankruptcy. It' s much complicated then I can understand.

Thailand is just one small piece of a large puzzle. I have rtried to understaand for w two years, jsut when I think I do. Another piece of the puzzle how up and I only find out I was wrong.

So Thailand is taking care of Thailand as they see fit, simple as that.

[bumper]

This simple satement could be a very significant statement and a change in direction for the BOT. Thus far it appears to me that the baht has out performed all other regional currencies in the past week and most of those to nations beyond Asia that it wants to export to. Not to mention the cost of being a tourist here today.There was only one clear reason for this to be happen selling dollars and propping up the baht. Is this the signal that want to be more competive in the world today? By the way this is from the new Finance Minister


One can only hope [-o<

BoT urged to monitor liquidity

Thailand's Ministry of Finance is advising concerned agencies to ensure that the country's liquidity is sufficient, and the Bank of Thailand (BoT) has been asked to closely monitor foreign exchange movements so that Thailand's baht currency moves in parallel with its ASEAN neighbours as a short-term measure to cushion the impact of the US financial crisis, according to a report issued by ministry's Fiscal Policy Office (FPO).


The report advised preparing for possible volatility in financial markets in the wake of the Lehman Brothers collapse earlier in the week, and that Thailand should in the medium- and long-term accelerate investment to prevent the economy from worsening in the future.


Thai exports are expected to fall because the US crisis will not only contract the American consumer market but is expected to impact many other countries, especially in Asia. Consequently Thailand may be required to adapt its monetary policy as well, the FPO analysis warned.


Currently, the ministry considers the risk of inflation to be less than economic slowdown, according to the report, adding that apart from boosting it own exports, Thailand must emphasise monetary cooperation with other countries in the region.


Monetary cooperation will need to be discussed at the upcoming summit of the Association of Southeast Asian Nations (ASEAN) which Thailand will host in December, the report said.


Although Thai financial institutions and businesses have conducted few business transactions directly with Lehman Brothers, local liquidity could tighten as local borrowers connected with the US firm may have to find new funding sources in Thailand, it added. (TNA)

[bumper]

I believe if we are to see a better exchange rate it will come from this arena, not the dollar. Alhough porblems maybe different they are still major problems. I really don't see the poltical unrest stopping. This current cabinet only may last through the next Court decesion. an individual instructed the justices to follow the law, they have done just that. If they do that then this cabinet won't be around long.

Biggest test since 1997 awaits
Suchart front-runner for Finance hot seat

POST REPORTERS

Thailand's new economic policy team will enter office during a period of turmoil and uncertainty unrivalled since the Asian crisis over a decade ago.


Prime Minister Somchai Wongsawat's cabinet, expected to be announced this week, is reported to be largely comprised of political neophytes, a concession to the demands made by the coalition parties to participate in the new government.


Suchart Thadathamrongvej has been tipped for the finance portfolio, succeeding Surapong Suebwonglee. Dr Suchart, an economist and academic, held a short stint as deputy finance minister in the Samak Sundaravej government.


Also mentioned to join the cabinet, possibly as deputy premier for economic policy, is Olarn Chaipravat, a former president of Siam Commercial Bank.


Business leaders agreed that rebuilding confidence and decisive leadership were critical in today's uncertain environment.


Economic growth, which reached 5.7% in the first half, could fall to 5% for the full year due to the impact of high oil prices and a slowing global economy.


But the meltdown on Wall Street this month is likely to have an even greater negative impact on the Thai economy, as investors remain wary of new risks for the near future and the US grapples with its greatest economic crisis since the Great Depression.


Dr Surapong, commenting on his last day in office yesterday, said the market events of the past month would certainly have some impact on Thai exports.


"What the government must do is strengthen the real sector as much as possible, accelerate spending under the fiscal 2009 budget and move forward with the infrastructure megaprojects, particularly the mass transit programmes, to help stimulate growth," he said.


Tim Condon, the Singapore-based Asia economist for ING, said restoring investor confidence was top of the agenda for the new economic team.


"From the outside looking in, political uncertainty is the most important problem for the Thai economy. We hope the new finance minister will be someone who is senior enough in the coalition so that politics will not complicate economic policy. While the economy is the back seat, politics is the front seat," he said.


"The first priority that the new cabinet and the finance minister needs to deal with is the political uncertainties."


Foreign investors want to be reassured that the country pressed ahead investment in the delaying large-scale infrastructure projects so that it provided economic stimulus in the wake of global credit crisis, Mr Condon said.


"Politics should not be an extra problem for Thailand. Political uncertainty has made foreign investors feel that it is more difficult making money in Thailand," he said.


Fukujiro Yamabe, president of the Japanese Chamber of Commerce (JCC) Bangkok, said foreign investors were always looking for economic policy consistency. "Similar to Japan, many changes of personnel are not good for the economy," he said.


"[Businesses] want economic ministers who could work with the prime minister and other cabinet members with no conflicts. They should be knowledgeable in the areas they would be responsible for and know how to tackle with the global economic slowdown."


Karl-Heinz Heckhausen, a former president of the German Chamber of Commerce, agreed. "They have to convince foreign investors and tourists that Thailand is a safe place and a democratic country," he said.


James Blaney Davidson, vice-president for international business development of Central Pattana Plc (CPN), said the new ministers should have strong leadership skills and be able to unify the country and business community.


"But much more important [than ability] is the integrity of every one in the cabinet," he added.


"They should understand businesses' and foreign investors' needs."


Local business leaders expressed similar sentiments. Dusit Nontanakorn, vice-chairman of the Thai Chamber of Commerce, said he hoped the new cabinet comprised qualified professionals.


"It is completely inappropriate that the cabinet lineup comes from siblings and spouses of existing politicians. Thailand is not a company owned by any one family," he said.


Tanit Sorat, a vice-chairman of the Federation of Thai Industries, said experienced candidates were crucially needed in troubled times.


"Considering that the world is facing a financial meltdown, Thailand will no doubt suffer an impact. We need a financial expert who understands the financial market and can manage the difficulties, not just someone who knows what is taught in economics classes," he said, adding that the new finance minister needed to be able to work closely with the Bank of Thailand.

[laphanphon]

yea, i wouldn't bet much on the american gov't to bail anything out, except themselves, the ones who made all the money, made all the wrong decisions, and now pass the buck to the taxpayer..........again.

simply postponing the inevitable and making a bad situation worst. if every american simply gave one dollar each, that's 360 million dollars plus, i think we could pay to bump off the entire administration and congress, and start over again. sounds like a better plan than the present choices for president and the incumbant career a-holes who have run the country into the ground. for that, i wiill definitely donate my fair share.

[BKKSTAN]

I fear that the dollar is on a long path of weakening now with these bailouts and extra funds poured into the credit markets.Any further gov't programs and the probable lowering of interest rates in America will keep the slide going!

[bumper]

Read it and weep biys we got nailed bya double whammy all in a weeks, time. I'm not betting things will say calm on the political situtation. Remember the new PM still wants to change the Constitution, unless something changes with that, I believe that will be the deal breaker. Interesting how they define calm still infighting within the PPP. I'm sure there will be another election, one way or another. Remember the party is very close to being desolved anyway.

Asian Currencies: Won, Peso Lead Drop as Investors Shun Risk

By Aaron Pan and David Yong

Sept. 23 (Bloomberg)

Political Situation

Thailand's baht advanced for a second day, reaching the highest in more than a month, as the dollar fell.

The baht also continued to find support on optimism new Prime Minister Somchai Wongsawat will be able to ease political turmoil after taking office last week. Somchai may unveil his cabinet by week's end and there's speculation he will call elections within the next few months.

``The baht is one of the strongest currencies in the past couple of days due to two factors,'' said Tetsuo Yoshikoshi, Asian foreign-exchange analyst at Sumitomo Mitsui Banking Corp. in Singapore. ``The first is the weaker dollar story due to concerns over the U.S. bailout plan. The second is the calmness in the Thai political situation.''

The baht strengthened as much as 0.6 percent to 33.68 a dollar, the highest level since Aug. 15, before trading at 33.77, according to data compiled by Bloomberg.

To contact the reporter on this story: Aaron Pan in Hong Kong at apan8@bloomberg.net; David Yong in Singapore at dyong@bloomberg.net.

Last Updated: September 23, 2008 04:52 EDT

[bumper]

I rest my case gents ain't over till it's over and this aint over.

From the TOC same date as Bloomberg guess they don'tread the local papers

PAD Leaders Not Surprised with Cabinet Line-up
UPDATE : 23 September 2008

The People's Alliance for Democracy has pushed forward their idea for a new political system.

Meanwhile, they admit they are not surprised by the first Cabinet lineup by PM Somchai Wongsawat.

Core PAD leader, Somsak Kosaisuk said it is not surprising that some unqualified MPs have been re-appointed to the new Cabinet and blamed PM Somchai Wongsawat for taking the country as a game, saying it is going to be a problem in the future.

Another PAD leader, Chamlong Srimuang, insisted on pushing for a new political system and said the PAD is open to ideas and opinions from academics and the public.

Chamlong said he will invite businesspeople to join a meeting on Saturday to discuss the idea of new politics, while he affirmed that the rally will continue its work to oust the government and call on it to leave the Constitution untouched.
The core leader also affirmed that the political system is not the reason for the extended rally and assured that the PAD has never desired to form a political party.

[bumper]

Wow!!!!!!!!!!! man you can really color me confused now. Baht is losing value WHY?

It's not the dollar, or whats happening in the states.

Political honeymoon over already?

They hoarding their cash instead of selling dollars?

What do yuo think Jimbo cause this one really surprised me I was planning on 32.

AMERICA IN CRISIS
Falling baht, oil price hike could fuel inflation
By Petchanet Pratruangkrai
The Nation
Published on September 25, 2008


The depreciating baht and the rising trend in global oil prices have the potential to push up inflation during the rest of the year, the Commerce Ministry said yesterday.


The ministry is, however, standing by its forecast that full-year inflation will not exceed 7 per cent.

Inflation in the first eight months reached 6.7 per cent.


Siripol Yodmuangcharoen, permanent secretary to the ministry, said officials were closely monitoring the baht and the oil price.


Inflation fell to 6.4 per cent last month due to lower oil prices, after having peaked to 9.2 per cent in July, a record high in a decade.

He was also concerned about whether the new government would withdraw the six measures that helped relieve the cost burden on consumers, as it could lead to higher inflation for the rest of the year.

"The government must consider carefully before cancelling the six measures, as they have been a major factor in curbing inflation," said Siripol.

He also opposed the Internal Trade Department's plan to add gold to its price-control list, as gold prices change in line the global price for the precious metal.

He said products under the ministry's price-control list must meet three criteria: they must be essential goods; their production must be based on daily use; and there must be many players in the sector.

He said gold did not meet any of the three criteria and hence it should not be under the ministry's price-control list.

To prevent consumers from unfair price hikes amid increasing demand for gold, Siripol said the ministry would call a meeting of concerned agencies on how to tackle the fluctuating price.

[bumper]

I wonder if this has anything to do with why we see it in the 34 range again today?

Deputy finance minister assures central bank of free hand to implement policy
BANGKOK, Sept 24 (TNA) - Acting deputy finance minister Suchart Thadadamrongwej, tipped to become finance minister in the new cabinet line-up, on Wednesday affirmed he would give the Bank of Thailand (BoT) a free hand to implement monetary policy if he is entrusted to take up the post.

He conceded he had been approached to assume the finance minister position and that he had agreed to accept the offer.

"I have agreed to take up the post because I am an economic specialist," he said.

Mr. Suchart said he viewed the appropriate level the baht should stay under current circumstances is 34-35 to the US dollar.

However, he would allow the central bank to implement the monetary policy independently.

He denied news reports that insurance firms in Thailand were experiencing a liquidity crunch in the wake of the financial institutions crisis in the United States.

The deputy minister said the Committee for Supervision and Promotion of Insurance Business Operations had given assurances that insurance companies in Thailand are not in financial trouble as some media reported.

Should local insurance firms actually experience severe liquidity shortages, he added, the finance ministry and the central bank had a contingency plan to cope with the situation. (TNA)