Baht sizzles amid new year inflows

Published: 17 Jan 2013 at 00.00
Newspaper section: Business

A surge in short-term foreign investment has strengthened the baht rapidly since the beginning of the year, but regulators and analysts expect the fast pace to ease soon.

Niwat Kanjanaphoomin, president of the Thai Bond Market Association, said short-term foreign investment flows increased by 5 billion baht in the middle of last week from the beginning of the year, with short-term bond purchases skyrocketing the past few days.

He said the flows will likely decline in a few months as public debt crises in Europe and the US ease.

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jaidee
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Discussion 5 : 17 Jan 2013 at 11.315
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Agree completely with #1, and #2.

Always interesting when the Baht increases its value at just how little its real purchasing power becomes. Inflation is running rampant throughout Thailand's economy yet nothing is being said or done, just more manipulation of an overly hot financial blunder.
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Ian
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Discussion 4 : 17 Jan 2013 at 09.574
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As a retired expat who has been suffering from the strong baht, I keep seeing signs and predictions of a baht collapse but wonder if I will live long enough to benefit from it.
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Ian
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Discussion 3 : 17 Jan 2013 at 09.573
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As a retired expat who has been suffering from the strong baht, I keep seeing signs and predictions of a baht collapse but wonder if I will live long enough to benefit from it.
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DonAleman
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Discussion 2 : 17 Jan 2013 at 08.122
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Boons is right on target and also : when the baht strengthens investors often delay and even cancel plans as their money buys less ! That being said Thailand is truly "magical" as some others, via smoke and mirrors, have been led, erroneously,to believe Thailand is politically stable, that their flooding problem is over, that the insurgency "problem" is diminished,the rice will be sold, the "tablets" will really advance education, and to a large degree that Asean is a life jacket, when, in reality, it may be a noose !( rope with hangman's knot )
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boons
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Discussion 1 : 17 Jan 2013 at 05.011
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The baht absolutely will not "ease soon" without direct action. If there's still anyone who doesn't know exactly what's in store, here's what happens next.

1) Exports collapse
2) Businesses leave to ASEAN neighbors with cheaper labor
3) Unemployment surges in Thailand
4) Pressure mounts on government to solve the unemployment problem
5) The banking sector arrives to save the day. A credit bubble ensues.
6) The credit bubble collapses. Then the baht collapses. 1997 looks like a walk in the park.
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Baht sizzles amid new year inflows | Bangkok Post: business