Stories tagged with baht
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Baht onshore/offshore rates equalize
The Thai baht onshore and offshore rates have now equalized following the lifting of the reserve on March 3, said Bank of Thailand (BoT) governor Tarisa Watanagase.
The 30 per cent withholding measure was imposed in 2006 to stem the baht’s speculation due to the gloomy economic outlook back then, and was a bonus for foreigners bringing in currency and utilizing the higher onshore rates.
Khun Watanagase said that the baht had equalized automatically, ‘without intervention’, following the reserve lift and that the economy had improved.
Onshore traded baht is now a lot closer to offshore traded baht since the measure was scrapped, with onshore and offshore dollar transactions at about 31.41 and 31.42 respectively.
Previous figures at the offshore rate of 31.42 baht to the dollar would have seen an onshore rate at roughly 34!
Thailand’s international reserves have also risen sharply in the last couple of years - at US$108 billion today compared with $67 billion at the end of 2006.
Posted by: Andrew on 24 Apr 2008, 20:54 -
Less baht for your dollar
Tourists to Thailand this year will find themselves getting less value for their money, as the baht continues to strengthen against foreign currencies. Easing of restrictions on capital controls on March 1st are likely to accellerate this appreciate, with the baht expected to soon hit 30 to US1$. This is a 20% gain in 18 months.
The original capital controls were implemented in December 2006 to guard against speculators as the baht continued to strength. Unattractive economic factors in the US have caused investors to flood the Thai markets with money, causing a steadily improving baht to dollar exchange rate that was hurting the country’s export competitiveness.
The Thai baht has appreciated at a much stronger rate against the floundering dollar compared to other Asian currencies. The introduction of capital controls had created a dual rate with the offshore exchange rate set at 31 baht to a dollar while rates given here in Thailand were a more favourable 33.5. The two will now merge but the Bank of Thailand is expected to spend several billion baht in foreign reserves to manage the appreciation gradually.
The baht has also moved up to its strongest exchange rate against the British pound in more than five years, reaching 63 baht to £1. The net result is that monies exchanged are devalued by approximately 8% year-on-year and regular visitors will certainly notice the increased expense of their holidays.
Posted by: Andrew on 06 Mar 2008, 11:40 -
Baht hits 11-year high
The Thai baht reached its highest point since August, 1997 on Wednesday making it among the Top 10 most traded currencies in the world.
The Thai currency actually reached the 30 baht to the US dollar mark at closing in the afternoon New York time.
The Bank of Thailand has spent many billions of dollars in an attempt to weaken the baht although this has had little effect and actually helps weaken the dollar further while boosting the value of the baht.
While the offshore rate his 30 baht to the dollar, the onshore rate also hit a record 32.06 baht per dollar; the highest it has been since just before the 1997 Asian currency crisis.
The British Pound is also trading at under 60 baht to the pound; a value also not seen for several years.
When tourists exchange foreign currencies for Baht, they would be better off waiting to exchange currencies within Thailand to obtain the more favourable onshore rate as opposed to obtaining baht in their home countries.
If transferring funds into Thailand, always ask banks to transfer in foreign currency so that the exchange is made in Thailand to obtain the better rate.
More on costs in Thailand
Posted by: Andrew on 29 Feb 2008, 08:29 -
Baht on 10-year high against dollar
The Thai baht has appreciated to 33.13 to the US dollar as of January 14, making it the strongest it has been in the last 10 years. The continually weakening dollar coupled with the strong baht is the cause.
The Bank of Ayuthaya foreign exchange department has also predicted the baht would strengthen further against the dollar to eventually breach the 33.00 mark.
Concerns of a US economic slowdown have lead to the current US dollar weakening and the Thai baht strengthening will no doubt have an effect on the number of tourists who choose Thailand as a holiday destination this year.
According to US trade figures for November, Thailand had a trade deficit of US$6.3 billion, which is the highest figure in 14 months; the cause being an increase in imports and fuel prices.
Surprisingly, Thailand’s exports actually showed a rise of 0.4 per cent on the previous month, making it a record one-month high owing to the weaker US dollar.
However, Thailand's Stock Exchange index, along with other regional markets, continued to drop during the morning trading session.
Posted by: Andrew on 14 Jan 2008, 19:36 -
Baht May Rise to 30/US$
A currency expert believes the Thai Baht would rise to 30 to the US dollar if the Bank of Thailand (BOT) ceased intervening in the level of the currency. Exporters are urging the central bank to slow the Baht's appreciation. The Nation carries the story.
Here are the historical rates of the Baht since January 2007.
Posted by: Watt on 05 Jul 2007, 10:01