Gaybutton Posted June 1, 2009 Posted June 1, 2009 At the time of this post, the exchange rate is as follows: US Dollar - 33.87 Euro - 47.84 British Pound - 54.87 Australian Dollar - 27.1125 Canadian Dollar - 31.0125 The following appears in THE NATION: _____ Govt Should Rein in Baht, Exporters Say By Petchanet Pratruangkrai The Nation Published on June 1, 2009 Exporters are urging the government to give serious consideration to managing the exchange rate, as they say the baht's continued appreciation is destroying their competitiveness. They believe it is very important for the government to maintain a weaker and more stable currency in order to ensure Thailand's economic growth amid the global economic downturn and weak demand. The export sector is the Kingdom's key economic driver. The comments came after some economic experts suggested the government not try to weaken the baht, saying exporters did not trade solely in US dollars but used other currencies too. Sukij Kongpiyacharn, managing director of garment firm Hong Seng Knitting, said traders wanted the baht to be stable against the dollar. He said exporters relied mostly on trading in dollars rather than other currencies like the baht, euro or yen. The government should ensure a more stable baht, he said, because the currency had appreciated almost Bt2 in recent months, from 36.20 to the dollar in March to 34.40 last Friday. Sukij said the ideal rate for ensuring export growth was 35-36 against the greenback. Narong Seafood deputy managing director Arthon Piboonthanapatana said that most foreign importers preferred trading in dollars regardless of exchange-rate instability. He said more than 80 per cent of traders in the food industry preferred trading in dollars but the baht's strengthening in recent months had made it more difficult for exporters to win contracts. The baht's appreciation has raised per-unit prices. Exporters must lower their margins to maintain competitiveness. Foreign buyers can easily switch to other countries for their goods if the baht becomes too strong, said Arthon. Wanlop Pichpongsa, deputy managing director of Capital Cereal, Thailand's largest rice-exporter, said the baht's strengthening had continued to destroy Thai exporters' competitiveness. "Although the market price for rice has not changed, Thailand's price has increased slightly, due to the baht's appreciation. This has created difficulty for exporters, because other countries' prices, particularly Vietnam's, are now much lower," he said. Despite exporting worldwide, Wanlop said dollars accounted for 99 per cent of his company's total trading value. Paphavee Suthavivat, managing director of Swift, the Kingdom's leading exporter of fresh fruits and vegetables, said exporters could not shoulder their losses from the stronger baht by buying into hedge funds. Quote
Guest lvdkeyes Posted June 1, 2009 Posted June 1, 2009 I am sure all farang would agree with the exporters. Quote
Guest lvdkeyes Posted June 1, 2009 Posted June 1, 2009 "current Marxist government in Washington" ?????? Quote
Guest toprogue Posted June 1, 2009 Posted June 1, 2009 "current Marxist government in Washington" ?????? L P is obviously a far right republican Quote
Guest lvdkeyes Posted June 1, 2009 Posted June 1, 2009 L P is obviously a far right republican He is a New Zealander. Quote
Gaybutton Posted June 1, 2009 Author Posted June 1, 2009 Are you going to accuse me in violation of "les majeste " law again? I won't, but I will accuse you of causing this thread to go way off topic. This thread is supposed to be about the possibility of the Thai government controlling the baht, remember? So, let's get off of personalities and American politics and back to the subject at hand, ok? Quote
Guest lvdkeyes Posted June 1, 2009 Posted June 1, 2009 I won't, but I will accuse you of causing this thread to go way off topic. This thread is supposed to be about the possibility of the Thai government controlling the baht, remember? So, let's get off of personalities and American politics and back to the subject at hand, ok? Amen Quote
Gaybutton Posted June 1, 2009 Author Posted June 1, 2009 That is why longer term US treasuries suffer, mortgage rates in US go up and any hope for recovery of housing market in US disappear. I see. The please contact both Prime Minister Abhisit and President Obama. They can certainly use advice from a man who has the answers. Quote
Guest lvdkeyes Posted June 2, 2009 Posted June 2, 2009 I always voted for Democrats except for last election Vote for the Democrats and then complain about the Republicans. Vote for the Republicans and then complain about the Democrats. Seems like self fulfillment to me. Quote
Gaybutton Posted June 6, 2009 Author Posted June 6, 2009 The following appears in the BANGKOK POST: _____ Korn: Strong Baht a Concern Liquidity to be Used on Raw Material Imports By: PARISTA YUTHAMANOP Published: 6/06/2009 A strengthening baht due to problem-solving measures in the US and the rising price of crude will be new challenges for economic recovery in the near future, according to Finance Minister Korn Chatikavanij. The US dollar is likely to weaken in the near future as the Federal Reserve continues to inject cash into the economy to resolve credit constraints and offset declining demand in treasury bills from abroad, he said. Crude oil prices yesterday rallied to $70 per barrel due to increased demand. Thailand would be affected as it is a major importer of oil, said Mr Korn. "The Fed needs to keep injecting cash for a while. One positive from this action is that demand will be sustained. But it is unavoidable that it will lead to upward pressure on prices, and increased manufacturing will also affect oil prices," he said. The government's 1.4-trillion-baht investment plan, mainly for small and medium-scale projects, should stimulate the economy for the medium term. Screened projects for investment are the ones ready for use, he said. "We will use domestic liquidity to import raw materials. This will reduce pressure on the baht. The government's position is clear: when the private sector is not ready and there is plenty of liquidity, it will spend," said Mr Korn. "Public debt will rise to 60% of gross domestic product over the next two years, which we think is acceptable." Speaking at an economic seminar, he said the government plans to embark on Southern Seaboard development to create a seaport and transport link between the eastern and western coast, as well as building a dual-track train network stretching from North to South and West to East, as long-term economic restructuring measures. Olarn Chaipravat, a former deputy prime minister, said the government should ensure foreign exchange did not hurt export revenue when other currencies were converted to baht. A weak currency helped South Korea's growth in the first quarter of the year, he said. He asked the Finance Ministry to push special financial institutions to lend to businesses. Mr Korn, however, rejected the idea, saying lending should target boosting consumer purchasing power rather than helping firms. Dr Olarn also said the government needed to rethink its automobile industry strategy, in light of greater focus from China and the US in the future. Meanwhile M.R. Pridiyathorn Devakula, a former deputy prime minister, urged the government and local investors to be cautious with the global economic recovery as increasing consumer demand is not yet firm. One factor is that an increase in US manufacturing in March offset a huge rundown in inventories from the fourth quarter of 2008. Another is that its retail sales remain weak. "Thailand, Taiwan and South Korea have benefited from China because its economic growth was driven by final demand rather than exports," he said. M.R. Pridiyathorn said purchasing power in rural Thailand could decrease in the second half of the year as merchants expect the government to sell paddy from its inventories at a cheaper price than it paid farmers. Quote
