Thai baht goes from top-performing to worst-hit currency in Asia

[Thaiger]

Before the pandemic, the Thai baht was the strongest-performing currency in Asia. Now, it’s the worst-hit currency in the region, according to Japan-based Mizuho Bank. The Thai economy has been shrinking over the past year, hitting lows which some compare to the contraction during the 1997 Asian financial crisis. The Japanese bank says the under-performance of the Thai baht is “uncharacteristic” and renders it “the worst performer to date in 2021.” The financial analysis platform Refinitiv Eikon also found the Thai baht to be the weakest-performing currency in the Asia Pacific region. As of this morning, the Thai baht had dropped […]

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[dmacarelli]

An economy can only handle so much mismanagement, sabotage and willful malfeasance, before it responds negatively. Somehow the world considered Thailand to be a credible spot for their investments, up until recently. Despite the (GMC) goombah management council. Now, they see through the facade, they see that Thailand is moving backwards at a breakneck pace, they see that the train is off the tracks, and heading for the forest. And they are fleeing. Good on them. This horrific and toxic administration deserves the punishment and humility. 

The people need to take action and rid themselves of the goons. ASAP. Whatever it takes.

The economy is in the toilet. No hope in sight. And no plan of action from the retrograde brigade. They are in so far over their heads. If only they would man up and admit it.

Kasikornbank is correct. These goons have succeeded in sabotaging the nation on a dozen levels. They have turned the roaring tiger of SE Asia into a whiny, anemic, weak, broke, frail, infirm, paranoid, timid, fragile, rabid, sickly, alley cat type creature.

Thailand is now totally unappealing to the world of tourism. A once important and vital industry reduced to ashes.

Some job Prayuth. You and Anutin could not have wreaked more destruction if you were deliberately attempting to terrorize your nation. Which you have done. 
 

Edited July 26, 2021 by dmacarelli

[AlexPTY]

Maybe there is not enough baht to keep baht afloat against hard currency. After all, it's soft third world, undeveloped currency against the world benchmark. Time to go where it should be. Low. Lower 

[gummy]

5 minutes ago, dmacarelli said:

An economy can only handle so much mismanagement, sabotage and willful malfeasance, before it responds negatively. Somehow the world considered Thailand to be a credible spot for their investments, up until recently. Despite the (GMC) goombah management council. Now, they see through the facade, they see that Thailand is moving backwards at a breakneck pace, they see that the train is off the tracks, and heading for the forest. And they are fleeing. Good on them. This horrific and toxic administration deserves the punishment and humility. 

The people need to take action and rid themselves of the goons. ASAP. Whatever it takes.

The economy is in the toilet. No hope in sight. And no plan of action from the retrograde brigade. They are in so far over their heads. If only they would man up and admit it.

Kasikornbank is correct. These goons have succeeded in sabotaging the nation on a dozen levels. They have turned the roaring tiger of SE Asia into a whiny, anemic, weak, broke, frail, infirm, paranoid, timid, fragile, rabid, sickly, alley cat type creature.

Thailand is now totally unappealing to the world of tourism. A once important and vital industry reduced to ashes.

Some job Prayuth. You and Anutin could not have wreaked more destruction if you were deliberately attempting to terrorize your nation. Which you have done. 
 

Don't blame it just on these retards, they only did what they were told to do because at the end of the day they were just two brainless idiots who had the support of gunmen

[SuzyFakeNames]

What should I do with my retirement fund here? Cash out now and take what I can get or wait 10 years?

[Shark]

2 minutes ago, SuzyFakeNames said:

What should I do with my retirement fund here? Cash out now and take what I can get or wait 10 years?

How would we be able to advise on this....

[SuzyFakeNames]

Got it, take the money and run;)

 

[Stardust]

11 minutes ago, SuzyFakeNames said:

What should I do with my retirement fund here? Cash out now and take what I can get or wait 10 years?

A catch 22

[Shark]

1 minute ago, SuzyFakeNames said:

Got it, take the money and run;)

enjoy life to the fullest.

[uanmak]

Sure THB is the worst performing in the region?

 

Not the worst performing currency in the region (at least in the considered timeframe).

Besides:

Not an expert in financial quantitative analysis, but perhaps these data speak by themselves.

Note: Singapore and Brunei dollar are at par.

 

 

[AdvocatusDiaboli]

5 minutes ago, uanmak said:

Not an expert in financial quantitative analysis, but perhaps these data speak by themselves.

 

1 hour ago, Thaiger said:

The Japanese bank says the under-performance of the Thai baht is “uncharacteristic” and renders it “the worst performer to date in 2021.”

Maybe you could use the figures from 1 Jan 2021 until now. This would then be inline with the news article. Would then be interested in seeing the posted results. Maybe the data that you posted does not speak by themselves.

[TobyAndrews]

Tragic but Thai magic. They turned a prospering developing country into a shunned, hungry, desperate disaster in 12 months.

As Demarcarrilli wrote: the train is off the tracks and heading into the forest, and one today was cancelled because there are not enough passengers.

After the train heads through the forest, the train will plunge over a cliff into a sea of sharks and boxed jelly fish, along with a few poisonous Lion fish. And it will do no good pulling the emergency stop cord. The engineers Prayut and Anuton, will already have jumped off and heading to their $10million homes in the south of France.

The GBP is now B45.14  and the graph is becoming as steep as the Matterhorn, The Botswana Pula is now B2.95, and against B2.62 last August. Botswaners are dancing in the streets

The fox is in the hen house and the cows are in the corn. That's Prayut and Anuton.

Thailand is a dead parrot.

IMHO

[BIGGLES]

The Baht has been over priced for years. Let it crash and burn. From chaos will come opportunity for those with cash.

All the property either for rent, or purchase, is way too expensive, let it crash.

The Thai's are lazy and think we westerners are dirty, stupid and only good for being ripped off.

I'm old enough to remember exchange  rates for  the GBP/BAHT at around  80 to the pound. Bring it on, and let the good days return. If you have investments in Thailand now, CASH OUT!!  

As for tourism, they need to understand that this needs to be made much, much more attractive. These people need to be offering incentives for tourists to travel to Thailand, not putting hurdles in their way.

All this Visa crap! They should be giving tourists money to go there, as in some European destinations ( Malta).

What do they think that they have which is so special, it is a third world country for christs sake!

[Stardust]

19 minutes ago, uanmak said:

Sure THB is the worst performing in the region?

Not the worst performing currency in the region (at least in the considered timeframe).

Besides:

Not an expert in financial quantitative analysis, but perhaps these data speak by themselves.

Note: Singapore and Brunei dollar are at par.

To understand it better there is no demand on baht either on the investmenside or demand by tourism. But the worst is they have liquidity problem that leaded also to the crash 97 (by the way same people responsible like now). 7 years incompetence and missmanagement lead the economy already before down before covid (productivity, education and no skilled workforce) . To get get demand from usd euro to Baht and to get liquidity they depended on tourism. To see a bit a overview why it is the worst performing currency 

 

https://www.cnbc.com/2021/07/26/asian-currencies-thailand-covid-lack-of-tourism-hit-thai-baht.html

 

[Soidog]

I’ve always been amazed at the performance of the Baht since the 2008 financial crash. Anyone who spends more than a few months living in Thailand or even showing a keen interest from outside of the country can see what is going on. The whole structure of society feels on the edge and unstable. There are so many things that just don’t feel right. That to invest in Thailand is akin to visiting a roulette table with your life savings. I can only assume the foreign currency algorithms don’t take in to account ridiculous figures such as 0.8% unemployment. Foreign tourist numbers being highly manipulated. Household debt figures below 60% etc etc. Anyone who lives in Thailand can see it.  How do these foreign currency inflows keep happening in such a fragile economy? 
 

The baht has lost about 10% against the $US in the past 6 months and about 12% against the GB£ in the last year. I have no confidence that if they limp on and get the vaccination ramped up, we won’t see some of these losses in the baht reversed. Foreign investors never cease to amaze me. I think any American or British expat who exchange dollars and Pounds on a regular basis may see most of these gains wiped out in the next 12 months????? 

[Soidog]

14 minutes ago, BIGGLES said:

The Baht has been over priced for years. Let it crash and burn. From chaos will come opportunity for those with cash.

All the property either for rent, or purchase, is way too expensive, let it crash.

The Thai's are lazy and think we westerners are dirty, stupid and only good for being ripped off.

I'm old enough to remember exchange  rates for  the GBP/BAHT at around  80 to the pound. Bring it on, and let the good days return. If you have investments in Thailand now, CASH OUT!!  

As for tourism, they need to understand that this needs to be made much, much more attractive. These people need to be offering incentives for tourists to travel to Thailand, not putting hurdles in their way.

All this Visa crap! They should be giving tourists money to go there, as in some European destinations ( Malta).

What do they think that they have which is so special, it is a third world country for christs sake!

I think they have been fooled by their own data. TAT have produced figures which show growth year on year. Setting targets which 12 months later are suspiciously 100% accurate. If you start to repeat something long enough, you can start to believe it yourself. Arrogance and over confidence become mainstream. It cascades down to tour operators, restaurants and bars who have more new stickers over their menus to inflate prices. Bike hire places who want 300 baht a day for a Honda Click with 100,000km on the clock.
 

I’ve been visiting Thailand for years and have spent the last 15 mainly living there. I have seen first hand the rise of arrogance and complacency towards tourists. It started with a few sharp attitudes and practices, and now the children of these people think it’s how to do business. I’d love to think this current situation will reset that mindset. I don’t think for one second it will. 

Edited July 26, 2021 by Soidog

[uanmak]

28 minutes ago, AdvocatusDiaboli said:

Maybe you could use the figures from 1 Jan 2021 until now. This would then be inline with the news article. Would then be interested in seeing the posted results. Maybe the data that you posted does not speak by themselves.

It doesn't change much, we are always saved by Myanmar:

However, if we want to be in line as well with the news article since its incipit, comparing the current vs. pre-pandemic situation may be more more relevant.

[AdvocatusDiaboli]

7 minutes ago, uanmak said:

It doesn't change much, we are always saved by Myanmar

Or it’s Coup. You could say that first and second place have something in common with the countries leadership.

[Stardust]

14 minutes ago, Stardust said:

To understand it better there is no demand on baht either on the investmenside or demand by tourism. But the worst is they have liquidity problem that leaded also to the crash 97 (by the way same people responsible like now). 7 years incompetence and missmanagement lead the economy already before down before covid (productivity, education and no skilled workforce) . To get get demand from usd euro to Baht and to get liquidity they depended on tourism. To see a bit a overview why it is the worst performing currency 

https://www.cnbc.com/2021/07/26/asian-currencies-thailand-covid-lack-of-tourism-hit-thai-baht.html

But the most worrying point is they have no money for open and restart the country or keep it floating. Thailand has the highest private household depth in Asia and the Government last years always household deficits they had to refinance by loans from abroad and then came covid all over loans, too. For example countries in europe, western world or USA had to put huge amounts of money into it to keep it floating and for opening the countries. But just compare the gdp in usd or euro and the productivity to the gdp of Thailand to understand about to get more loans or to make more debt. To make it simple , you are already in debt and you earn 300 usd in the month (gdp) for a loan you need of 1 million usd.

[SuzyFakeNames]

41 minutes ago, BIGGLES said:

If you have investments in Thailand now, CASH OUT!! 

The sooner the better, right? Hard to give up the matching funds from the employer but would have to wait a few more years to get 100% of that. Difficult to imagine working here that much longer if things continue as they are.

[Noel]

The currency has been on the US watch list for currency manipulation for years. Although Biden renamed it this year, but still means the same thing.

Fortunately they government has to priorities Covid and the country burning to the ground right now so can not use so much money to keep the value of the Thai Baht artificially high. This will change as the crisis changes next year.

Obviously this is done to stablise investment as no one wants the money they invest into Thailand becoming worthless due to currency change.

[Lowseasonlover]

Im no financial expert so I'll ask you guys, How would it work with Bitcoin I understand the $ price on the exchanges I have one BTC account in Thailand that quotes in Thai baht, I do have other accounts that quote in dollars, do I leave it where it is or move to the dollar account? I only have BTC in Thailand 

[dmacarelli]

2 hours ago, uanmak said:

Sure THB is the worst performing in the region?

Not the worst performing currency in the region (at least in the considered timeframe).

Besides:

Not an expert in financial quantitative analysis, but perhaps these data speak by themselves.

Note: Singapore and Brunei dollar are at par.

Burma does not count. By any standards, and on any list. They are a non entity, at this point, and should be treated as such.

[Stonker]

If the baht collapses, who loses?

Tourists?  No, big winners.

Tourism? No, big winners.

Exporters? No, exports up.

Expats? Not those with a pension or overseas income ... except those wanting to sell up and leave.

Average or lower-economic locals? Not much, buy Thai.

 

Why would this be such bad news?

 

[Stardust]

For any production you need to import resources and from the supplychains. All the loans Thailand took are all in foreign currency mostly  in usd and euro. By the way same like Thaiairways the credits came from USA, Germany, Swiss and Japan. Highest private household debt from all Asia and the Banks took the money in US dollars when the interests were low and baht higher, then a huge liquidity problem, no demand for baht,  already and a government with a huge household deficit again that they have to refinance again over loans plus covid. This is the perfect storm!