Thai Baht currency NEWS

[devondad93]

I was just wondering why will Thailand not learn about business? As they all know that tourism is down massively before the effects on the global recession on all the major currencies. And now, Thailand believes people will still flock to Thailand when it will become as expensive or more than staying home.

[Mymatesaid]

"Why won't Thailand learn about business?" That must be one of the funniest questions I have ever seen on this forum.

As an example the UK are 150+ billion pounds in dept. Shouldn't it be them that are learning about business. The Thai baht is not strong. It is the Pound,dollar and euro that are shite.

The tourists will still come. Thailand knows that so are not worrying about it. For people carrying pounds, dollars or euros there are not any cheap holiday destinations.

It's the people that stay here that are winging most. The same people that said things like "Why should I put my money into a Thai bank account at 1 per cent interest. Better to leave it over seas." Well I brought most of my money over here at 68 to the pound and accepted the low interest.

When will you next see that rate? Probably never.

[Admin]

BoT: Strong Baht in line with region 
The Nation: 20 Jul 2010
BoT: Strong Baht in line with regional currencies

The three per cent appreciation of the baht should not affect Thai exports significantly, as it was in line with regional currencies, the Bank of Thailand's Governor Tarisa Watanagase said on Tuesday.

The currencies of Singapore, Indonesia and India had all appreciated more than the baht this year, with the exception of Vietnam's dong currency, the central bank governor added.

Thai rice exporters have complained that the strong baht relative to Vietnam's dong currency has hurt the Thai rice exports.

[Admin]

Foreign capital flows back to Thailand 
: 4 Aug 2010
Foreign capitals flowing into Thailand

BANGKOK, 4 August 2010 (NNT) – Foreign capital inflows have returned to stand in positive territory throughout the past few days due to a better economic condition of Thailand, reports the Bank of Thailand (BOT).

According to BoT Assistant Governor for Financial Market Operations Group, Suchada Kirakul, foreign capitals have started flowing into the Stock Exchange of Thailand (SET) and the Thai bond market. The net capital inflow had been in deficit since the beginning of 2010.

The Thai Baht currency movement during this period is not too strong when compared with other foreign currencies. Appreciation of many currencies, including the Thai Baht has been triggered by the improvement in significant economic figures and Dow Jones Indexes of the US.

In addition, the improving US economic figures have prompted investors to take risk in speculating their investment. At the same time, the US dollar has been depreciating, sending other currencies including the Baht to appreciate.

A considerable amount of foreign capitals had been flowing out of the country during the recent political abyss in May; however, the situation has been improving after the domestic political situation has eased off.

[Admin]

Baht near 3 month high on inflows 
: 4 Aug 2010
Baht Trades Near 3-Month High on Fund Inflows, Growth Outlook
By Yumi Teso

Aug. 4 (Bloomberg) -- Thailand’s baht rose for a third day as signs economic growth is gathering momentum spurred speculation that overseas investors will increase purchases of local stocks.

HSBC Holdings Plc today increased its forecast for Thailand’s gross domestic product growth to 7.6 percent in 2010 from its June prediction of 6.1 percent. Overseas investors bought $53.5 million more local shares yesterday than they sold, the biggest amount in a week, helping to send the benchmark SET Index to the highest close since May 2008.

“There have been quite a lot of inflows into Thailand recently, supporting the baht,” said Parson Singha, chief markets strategist in Bangkok at HSBC. “People are in general bullish on Thailand’s economic growth.”

The baht traded at 32.18 per dollar as of 8:19 a.m. in Bangkok from 32.21 yesterday, and touched 32.13 for a second day, matching its April 26 high. HSBC expects the baht to strengthen to 31.5 by year-end, Parson said.

Rising exports will continue to support the Southeast Asian nation’s growth, HSBC said in a research note today. The upward revision was also due to “relatively subdued” impact from the political violence in April and May, it added. HSBC also raised its year-end forecast for Thailand’s benchmark interest rate to 2 percent from 1.75 percent.

Overseas sales increased by 47.1 percent in June from a year earlier to a record $17.9 billion, the central bank said July 30.

The one-year onshore swap rate, the fixed cost needed to receive a floating payment, was at 1.75 percent, unchanged from yesterday. The rate has increased 37 basis points since the end of June, suggesting investors have boosted bets for interest- rate increases over the next 12 months. A basis point is 0.01 percentage point.

The Bank of Thailand on July 14 raised its benchmark interest rate for the first time in almost two years, raising the one-day bond repurchase rate by a quarter of a percentage point to 1.5 percent. Policy makers will next meet on Aug. 25 to review monetary policy.


http://www.businessweek.com/news/2010-08-03/baht-trades-near-3-month-high-on-fund-inflows-growth-outlook.html

[Admin]

Asian currencies rise led by Thai Baht 
Bangkok Post: 9 Aug 2010
Baht appreciates to 26-month high

The Thai baht strengthened to a 26-month high on Monday morning due to the country's high export growth and economic expansion, Finance Minister Korn Chatikavanij said on Monday.

Mr Korn said he would like the Bank of Thailand to fine-tune its handling of the baht's appreciation.

The baht was valued at 31.99-32.00 baht per US dollar on Monday morning. Its value on Friday was 32.05-32.06 baht a dollar. The currency is at its strongest since May 2008.

http://www.bangkokpost.com/business/economics/190212/baht-appreciation-hits-26-month-high

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Asian Currencies Advance, Led by Thai Baht, on Growth Outlook
August 09, 2010, 5:29 AM EDT

Aug. 9 (Bloomberg) -- Asian currencies strengthened, led by the Singapore dollar and Thailand’s baht, on optimism the region’s growth outlook will lure funds.

Singapore’s currency advanced to its strongest level in more than two years after Prime Minister Lee Hsien Loong said yesterday that gross domestic product expanded 17.9 percent in the first half, keeping the economy in contention for the world’s fastest-growing market in 2010. Taiwan’s dollar advanced for a third day as a report showed exports gained for a ninth month, and the won rose on speculation the central bank will raise interest rates.

“Money has been flowing into the region, putting appreciation pressure on currencies,” said Hideki Hayashi, a global economist at Mizuho Securities Co. in Tokyo. “When you compare growth in Asia and the rest of the world, you want to invest in the region.”

The Thai baht appreciated 0.3 percent to 31.96 per dollar as of 4:04 p.m. in Bangkok and earlier touched 31.92, the strongest level since May 2008, according to data compiled by Bloomberg. The Singapore dollar advanced 0.3 percent to S$1.3472, its highest level since July 2008. The Indian rupee rose 0.2 percent to 46.075 per dollar.

Asia’s developing nations will expand 9.2 percent this year, while advanced economies will grow 2.6 percent, the International Monetary Fund said on July 7. Overseas funds pumped more than $21 billion into equities in India, South Korea and Taiwan this year, according to data from the respective exchanges.

http://www.businessweek.com/news/2010-08-09/asian-currencies-advance-led-by-thai-baht-on-growth-outlook.html

[Admin]

Baht stabilizes after BoT intervention 
: 11 Aug 2010
THB stabilizes after BoT intervention

BANGKOK, 11 August 2010 (NNT) – The Thai currency has become more stable after the central bank’s intervention over the last few days. Bankers forecast a high trade surplus this year and expect the baht to strengthen to 31.50 THB against the USD.

A financial analyst from Siam Commercial Bank said that the movement of Thai baht on Tuesday was quite stable. It opened at 31.96/98 THB per USD, and then reached the highest of 31.955 THB during the day before weakening slightly down to 31.95/97 THB per USD at the closing with normal volume of transaction.

The recent appreciation of the baht has been favored by the vast trade surplus generated by growing exports over the past several months in coherence with the weakening of the USD. The trend is expected to continue and may soon hit 31.50 THB per USD.

The baht has fast rebounded to its leap in the past 2 days. However, it is considered rather steady under the control of the Bank of Thailand.

[Admin]

Baht hits new high on investment wave 
The Nation: 18 Aug 2010
Investment wave pushes baht to a new high
By THE NATION
Published on August 18, 2010

The unstoppable wave of capital inflow pushed the baht to its strongest level in two years yesterday, while analysts expected further appreciation to Bt31.7 to the US dollar this month and at Bt31 by year-end.

Yesterday, the baht appreciated 0.4 per cent to Bt31.72 per dollar as of 3.35pm in Bangkok, the biggest advance since May 18 and the strongest level since May 2008, according to data compiled by Bloomberg.

Analysts attributed the appreciation to capital inflow, as investors shifted their funds from the United States and Europe, which are reeling under bad news. Thai exporters, however, are also converting to the US dollar to prevent further baht appreciation.

Over two days, the baht gained 20 satang against the dollar, without much intervention from the Bank of Thailand, according to analysts. They expect the baht to move in the range of Bt31.65-Bt31.80 today thanks to huge gains over the past few days, as well as importers buying dollars to fulfil their purchase obligations due late this month.

Thiti Tantikulanan, head of Kasikornbank's Capital Markets Business Division, said the baht had moved in line with regional currencies. Thanks to the inflows in the past two weeks, the baht has gained 1.5 per cent, the Singapore dollar 0.7 per cent, the Malaysian ringgit 1.1 per cent, the Philippine peso 1.2 per cent and the South Korean won 1 per cent.

He acknowledged that the baht's appreciation was slightly beyond that of other regional currencies, based on the inflow of about Bt6 billion to Bt7 billion so far this month.

"With a trade surplus of nearly US$7 billion [Bt222 billion] in the first half, the baht may further strengthen, and it could hit Bt31 per dollar at this year's end," Thiti said.

Hideki Hayashi, a global economist at Mizuho Securities in Tokyo, said: "With anticipation of further declines in the dollar, local exporters will rush to sell them, boosting the baht.

"Some Asian countries may boost interest rates while the US is expected to keep them low, which is supportive of regional currencies," he told Bloomberg.

The one-year swap rate yesterday rose to 1.72 per cent from 1.705 per cent on the previous day. The rate has increased 34 basis points since the end of June, as investors expected the Bank of Thailand to raise the policy rate.

[Admin]

Thai government to oversee baht's value 
Bangkok Post: 28 Aug 2010
PM: Govt to oversee baht's value

The government will oversee the value of baht to prevent it fluctuating too much, Prime Minister Abhisit Vejjajiva said on Friday afternoon.

“Relevant state agencies will introduce needed measures to stabilise the value of the Thai currency, but will not act against the money market’s mechanism. We have already experienced an expensive lesson from doing so in the past,” said Mr Abhisit.

The prime minister said the Bank of Thailand must oversee the baht's value and interest rates to ensure they stay at appropriate levels and in line with the changing situation. Any decision to adjust the policy rate must be made carefully as the central bank is also duty-bound to curb inflation.

He had discussed the economic situation with the Office of the National Economic and Social Development Board and believed the current inflation rate is controllable. Inflation is unlikely to be higher than the current level.

Mr Abhisit said even though the economy would grow at a slower pace in the second half of the year, the growth rate could be higher than seven per cent this year. He projected economic expansion would slow down to four to five per cent next year.

Asked if the government would allow manufacturers to raise prices of their products due to higher production costs, Mr Abhisit said the Ministry of Commerce would propose the matter for consideration by the cabinet at next week’s meeting.

“Consideration of whether to allow price increases will not be based mainly on cost of production as other factors would also be taken into account,” he said.

Asked whether the increase in prices could lead to an increase in the minimum wage rate, the prime minister said it is possible the daily wage would be raised - either before or at the same time as the salary of government servants is increased.

Civil servants have been promised a rise of five per cent in basic salaries next April.

http://www.bangkokpost.com/business/economics/193231/pm-govt-will-oversee-baht-value

[Admin]

Baht may hit 13 year high on fund inflows 
The Nation: 1 Sep 2010
Baht may hit 13-year high on fund inflows
By THE NATION, BLOOMBERG
Published on September 1, 2010

Thailand has witnessed a continued increase in net capital inflows, expected to keep the baht on the appreciation path probably to a level unseen since 1997.

According to the Bank of Thailand, in July, net capital inflows were worth US$2.7 billion (Bt84 billion), which went to all parts of the economy, including $987 million to non-bank business.

Mathee Supapong, director of the central bank's domestic economy department, said inflows to the non-bank sector were either foreign direct investment or investment in the stock market. The banking sector attracted only $571 million, mostly short-term financing and some as investment in banking shares through the stock market.

London-based Barclays predicts that the baht may strengthen to levels not seen since 1997 over the next year as accelerating growth encourages foreign investors to keep pouring money into the nation's assets.

The baht could appreciate 1 per cent to 31 per US dollar over three months, 1.8 per cent to 30.75 in six months and 2.6 per cent to 30.50 in a year, Singapore-based economist Rahul Bajoria wrote in a research report. In January, the bank forecast that the baht would advance to 31.75 in a year.

"We expect the baht to enjoy continued trend appreciation, as the external position remains robust," Bajoria wrote. "Strong inflows into local-currency bond and equity markets, along with current-account surpluses, should generate further upward pressure on the currency."

Last month, the baht advanced 3.2 per cent, its biggest monthly gain since February 2008. According to Bloomberg, it advanced to 31.29 per dollar.

"There will be more willingness on the part of the central bank to let the currency appreciate," Bajoria said. "The appreciation is going to be in line with regional currencies, so it's not going to harm the competitiveness of the external sector."

Mathee said the Bank of Thailand had no specific level where the baht would go, but would maintain equilibrium with regional movements. This should limit negative impacts on exporters.

The currency drew support from government data showing that growth in gross domestic product in the first two quarters, at 12 per cent and 9.1 per cent, was the best since 1995.

According to the Bank of Thailand, the economy in July kept expanding, though at a slower rate than in the previous month. While private consumption, exports and manufacturing slowed because of sharp growth in the first half, tourism showed continued recovery. In the month, Thailand welcomed 1.25 million visitors, up 14.9 per cent year on year, while the hotel occupancy rate stayed at 46.9 per cent compared with 37.3 per cent in the previous month.

Private investment rose 22.1 per cent year on year, mostly in the electronics, electric-appliance, automobile and construction sectors. Private consumption rose 5.1 per cent on-year, while exports at $15.48 billion rose 21.2 per cent. Industrial manufacturing expanded 16.3 per cent, down from 21.9 per cent in June. Inflation in the month accelerated on higher fresh-food prices and higher industrial and retail employment.

The central bank is widely expected to raise the policy rate again next month to 2 per cent.

[Admin]

Calls grow louder for action on Thai baht 
Bangkok Post: 11 Sep 2010
Calls grow louder for action on baht
29.50 exchange rate possible by OctoberBusiness leaders have stepped up their calls for the government to make a greater effort to curb the impact of the strengthening baht, according to Payungsak Chartsutthipol, chairman of the Federation of Thai Industries (FTI).

The baht was trading yesterday at a 13-year high of 30.82/85 to the US dollar, compared with 33.15 baht in January. The 7.6% increase is the highest in the region behind the Malaysian ringgit.

However, the impact is less pronounced in Malaysia because its economy is not as export-dependent as Thailand's, said Mr Payungsak.

"The stronger baht has both positive and negative sides," he said. "While it benefits the industries that have high import content and those needing to pay back loans, exporters face a reduction in competitiveness. Looking after the economy means taking care of every sector.

"We want the government to send signals that it will come and provide help."

FTI vice-chairman Thanit Sorat said the Thai baht could reach 29.50 by the end of October if it gains another 1% against major currencies per month. This would have a more pronounced negative affect on exporters unless the Bank of Thailand has measures to curb the flow of money coming into the country.

Thailand's interest rates are high compared with those elsewhere in the region, which is encouraging the inflow of money to the country, said Mr Thanit.

He said gross domestic product (GDP) growth this year could be half a percentage point lower than forecast if the baht continues to rise.

Vallop Vitanakorn, vice-chairman of the Thai National Shippers Council, said the central bank should seek co-operation from commercial banks to provide packing-credit loans in both baht and dollars. Currently the loans are provided mostly in baht.

"Whenever the baht reaches 29 baht per dollar, that will be the crisis for the garment sector," said Mr Vallop.

The FTI has proposed six remedies for the export sector, starting with an explicit acknowledgement by the government that rises in export goods prices are reducing exporters' competitiveness against their rivals.

It said the central bank needed to intervene more in the currency market to stabilise the exchange rate so the gains are more in line with those of other regional currencies.

As well, the FTI said, both the government and the central bank should take immediate measures to prevent speculators from pursuing short-term profits.

It is also asking the Port Authority of Thailand to lower service fees for exporters for three months. Customs duties for exports should also be reduced.

The FTI is also proposing that the government allow exporters to pay time-charter rates for ships in foreign currency.

The heavy inflows of funds into Thailand reflect robust economic growth and relatively low valuations of local stocks, said Yunyong Thaicharoen, head the Capital Market Research Institute at the Stock Exchange of Thailand.

Capital inflows to the bond market have totalled $3 billion so far this year, in addition to nearly $600 million into the SET.

The trend reflects the interest rate differential between Thailand and other countries, particularly at a time when the US Federal Reserve has signalled there will be no increases in its benchmark rate for a long time because the recovery is so weak.

However, the baht's appreciation will lessen the central bank's need to increase interest rates to curb inflation in the future. Its Monetary Policy Committee has raised the short-term rate by a quarter percentage point each in two consecutive meetings to 1.75% from 1.25% in mid August.

"I don't think it is necessary to use strong measures right now. The inflows reflect the economy's fundamentals and a catch-up move [from an underperforming market in the first half of the year]," said Dr Yunyong.

The economic fundamentals now are different from those in 2006, when policymakers feared that only exports could save the economy after a coup shook investor confidence.

"The economy is in a better position to cope with the baht's strength than in 2006. Domestic demand has recovered satisfactorily and the economy has good momentum," he said.

http://www.bangkokpost.com/business/economics/195718/calls-grow-louder-for-action-on-baht

[Admin]

Foreign reserves surge in September 
: 27 Sep 2010
International reserves surge in September
MCOT online news

Thailand’s international reserves as of Sept 17 stood at US$159.1 billion or some Bt4.9 trillion, up $1.5 billion or Bt46 billion from the $157.6 billion or Bt4.86 trillion registered the week before, according to the Bank of Thailand (BoT).

The reserve amount is calculated based on the current baht value standing at Bt30.7 to the US dollar.

The net forward contract position amounted to $12.5 billion, up $800 million from $11.7 billion listed in the previous week.

A commercial bank source said the fact that Thailand's international reserves this week increased rather considerably from the week before was likely to have stemmed from the central bank giving more weight to possible intervention in managing the stronger baht by purchasing more US dollars in the market and keeping them in the reserve.

Last week, the Bank of Thailand experienced strong criticism in the market that it had paid little attention to overseeing the stability of the baht.

According to the central bank’s report, the cash flow circulating in the system this week totaled Bt1,008 trillion, down Bt30.8 billion from Bt1.039 trillion the week before. The cash amount
had decreased despite the country’s economic recovery. (MCOT online news)

http://www.mcot.net/cfcustom/cache_page/107007.html

[Admin]

Baht climbs closer to sub-30 USD range 
Bangkok Post: 5 Oct 2010
Baht climbs closer to sub-30 range

The baht continued its rise to 13-year highs yesterday after new data added to evidence that demand in China, a key market for Thailand, is strengthening, traders said.

The baht has gained 10% so far this year, the second-best performer in Asia behind the ringgit and the yen, as foreign investors have pumped a net $1.4 billion into local equities to benefit from the fastest economic growth in 15 years.

The non-manufacturing purchasing managers index in China rose to 61.7 in September from 60.1 in August, reports showed. "The better Chinese data and the increase in its domestic demand mean exports from Asia to China may expand, boosting regional currencies," said Tohru Nishihama, an economist at Dai-ichi Life Research Institute in Tokyo.

The baht traded yesterday in Bangkok at 30.19/23 to the US dollar compared with 30.33/37 on Friday, and briefly hit 30.08, the highest since July 1997.

http://www.bangkokpost.com/business/economics/199708/baht-climbs-closer-to-sub-30-range

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SET slides on rumour of capital controls

The Stock Exchange of Thailand Index has tumbled 14.36 points, or 1.47%, on rumours that the Bank of Thailand might adopt capital control measures to prevent a further strengthening of the baht.

The index closed yesterday at 964.22 with hefty trading volume of 48.92 billion baht. The stock nosedive was mainly caused by local institutional and retail investors who were net sellers of 1.36 billion baht and 1.17 billion baht, respectively. Foreign investors remained net buyers of stocks worth 3.57 billion baht.

Kasikorn Securities assistant managing director Kavee Chukitkasem said speculation about possible capital controls was widespread in the market yesterday as the baht has appreciated 9% from early this year. Still, he said, investors should not panic.

"Foreigners would be the first to leave the market in response to such capital controls but they're still net buyers. I think it's just a rumour released for local investors to take profit," he said.

Phatra Securities analyst Therapong Vachirapong said the reason the market had fallen since the index had risen to nearly 1,000 points was local investors taking profit.

http://www.bangkokpost.com/news/local/199683/set-slides-on-rumour-of-capital-controls

[Admin]

Regional moves needed to curb baht rise: Korn
By ACHARA DEBOONME
THE NATION

'National policy required for public, private response'

Thailand needs to draw up a national policy and seek concerted action from Asian countries, as unilateral efforts have been futile in weakening their currencies against the US dollar amid excessive capital inflows that normalise the impacts of central banks' intervention, economists have said.

The suggestion comes after Finance Minister Korn Chatikavanij said in a teleconference from Washington DC last Saturday that the issue would be discussed at the G20 meeting next month.

Korn noted that the public and private sector must jointly consider options to adjust to the strong baht, to maintain competitiveness as weakening the baht would be tough to do "against the tide". Bank of Thailand could just soften the pace of appreciation and there was no sure way to weaken the baht, he said.

While the BOT was taking care of foreign exchange rates, his ministry would launch relief measures to soften the impact of the strong baht. Aside from measures to help SMEs, the Revenue and Excise Departments would come up with moves to speed up investment to lift production quality, Korn said.

While exporters have complained about the "lack" of intervention to steady the currency, the central bank has bought dollars massively to weaken the baht. This is especially true of the last few months, as reflected by growing international reserves. Reserves ballooned by US$18 billion (Bt540 trillion) from the end of June to $164.8 billion as of October 1. This is a sharp rise from $138.4 billion at the end of 2009. Despite intervention, the baht last week broke the 30 per dollar level, and now the market expects the currency to end the year at 28-29.

"Thailand has been on the right direction in slowing down the currency appreciation pace. We need measures to help the affected. More importantly, what we can do and must do is seek regional cooperation. Acting singly, Asian nations would never beat the trend. Second, we need to rebalance the situation, as with more outflows, the appreciation could slow next year," said Usara Wilaipich, a senior economist at Standard Chartered Bank (Thai).

She believes that concerted action would at least give a reason for dollar buying, concurrently ahead of the closing of trading accounts at the end of the year. "Traders are now scrambling for a reason to take money back home. This should help, at least in this round."

"BOT and other Asian banks will run out of resources to bring down their currencies soon," said a treasurer at a local bank who asked not to be named. "Thailand needs a longterm strategy, with a joint brainstorming session from the public and private sectors. How can Thailand survive when the baht is 20something per dollar. The central bank should no longer underwrite the risks for exporters. We have complained only on the negative impacts, but we haven't yet considered options to use the advantages in strengthening long-term competitiveness."

While admitting negative impacts on some, an economist noted that Thailand gains net benefits from the baht strengthening. While agriculture, labour-intensive and resources sectors are hard hit, benefiting from this are energy, auto parts, capital goods and raw material importers. Totally, benefits are double the size of losses.

CIMB Thai Bank executive vice president Padej Piroonsit, Siam Commercial Bank's economist Pornthep Jubandhu and Usara at Standard Chartered agreed that Thailand and other countries cannot fight this battle alone, as it is sparked by the weak dollar policy. Japan's intervention in September, the first since 2004, failed to weaken the yen. Thanks to US quantitative easing, which flooded global markets with liquidity, and to the fragile recovery in the US, investors are channelling money to wherever they find good economic growth stories - including Thailand, which in the first half recorded nearly 10 per cent in economic growth. Year to date, foreign investors have remained net buyers in the stock market, with net purchases surpassing net sales by Bt49.4 billion. More than Bt100 billion is invested in government bonds with maturity of over one year, marking a record high.

"In the past month, the strength of the baht had more to do with US dollar weakness than Thailand's economic fundamentals," said Thiti Tantikulanan, chief of Kasikornbank's Capital Markets Business Division. In September alone, the dollar weakened 10 per cent against the euro, 6.9 per cent against the Australian dollar, 5 per cent against the Indian rupee, 4.7 per cent against the Swiss franc, 4.6 per cent against the Korean won and 3.6 per cent against the Taiwanese dollar and Thai baht.

While suggesting Thailand not resume universal capital control, like the one imposed in 2006, as that will shock the financial market, an economist who asked not to be named suggest an investment in infrastructure projects, like logistics networks that rely heavily on imported equipment. While this would facilitate outflows, it would also enhance Thailand's long-term competitiveness.

The situation could get worse if the US Federal Open Market Committee announces a second round of quantitative easing on November 3, with the injection of over $500 billion into the economy.

"Whatever we do now, if the US announces another quantitative easing, a new round of inflow would hit Thailand in January," Usara said.

[nookiebear]

News broadcasts in UK are talking about a Bhat de-valuation!!!!!!!!