Connect with us

Banking

Thai Baht to reach 28 to USD next year (SCBank)

Thailand’s baht is likely to strengthen further and break through the level of 28 to the US dollar next year, according to a leading private sector economist.

Boris Sullivan

Published

on

Thailand currency

Thailand’s baht is likely to strengthen further and break through the level of 28 to the US dollar next year, according to a leading private sector economist.

Dr Sethaput Suthiwart-Narueput, head of the Siam Commercial Bank (SCB)  Economic Intelligence Center, said the Chinese central bank is expected to let its currency, the yuan, appreciate by 4-6 per cent or 5 per cent on average.

So, it is very likely the baht will strengthen in the same direction as the yuan by 5 per cent to around 28 late next year from its level of 29 to the US dollar now.

So far, he said, the yuan had appreciated sharply by 21 per cent while the baht had surged by 27 per cent.

Dr Sethaput said he believed the Bank of Thailand (BoT) Monetary Policy Committee will not raise the policy interest rate at its meeting on Dec 1 since it did not want to see the baht strengthen further.

He said the inflation rate projected by the central bank is higher than it should be since it believed the government will extend its measures to help ease the cost of living for low-income people.

The SCB chief economist projected that foreign direct investment (FDI) will continue flowing into the country next year, but at a slower pace and the current account balance will continue in surplus.

via Baht likely to surge to 28 to US dollar next year, says SCB economist.

Thai Finance Minister Korn Chatikavanij has said that he did not expect the 600 billion U.S. dollars injection into the U.S. economy to have any immediate effect on the Thai currency and its capital market.

Korn said the Thai government’s existing measures remained effective enough to control the rising baht as the US Federal Reserve’s announcement was in line with the government’s earlier estimate of 500-700 billion dollars, according to local media reports.

The US Federal Reserve announced Thursday that it will buy an additional 600 billion dollars of treasuries through June next year, which could further depreciate the greenback.

Central banks from China to India and Australia have raised interest rates to curb inflationary pressures at a time when Japan and the U.S. are adding monetary stimulus to boost economic growth.

Lots of Investment management Companies are  investing in local currency debt and foreign exchange contracts in Asia on the basis that currencies in that region are undervalued.

The Chinese yuan in particular is likely to feel strong appreciation pressure in coming years, Toloui said. To benefit from this trend, Pimco is investing in yuan-denominated nondeliverable forwards, a type of offshore financial contract linked to a currency’s value. The firm also sees room for the Singaporean dollar, the Korean won, and the Philippine peso to appreciate.

The most recent strength of emerging market currencies has set off a war of words among policymakers around the world. Emerging nations argue that the U.S. Federal Reserve, through an aggressive bond purchase plan, is essentially printing money that will flow into overseas markets, create asset bubbles and further drive up emerging currencies versus the dollar. The Fed, meanwhile, says that by keeping their currencies artificially low, emerging markets risk overheating their economies.

Currency Exchange Rate Date : 24 November 2010
Update : 1 Effective From : 8:30 [Unit : Baht per 1 unit of foreign currency]
Currency Description Bank Note Buying Rates Selling Rates
Bill-DD-TT
Buying Rates Selling Rates Sight Bill TT
USD1 USD : 1 28.90 30.28
USD5 USD : 5-20 29.21 30.28
USD50 USD : 50-100 29.68 30.33 29.83 29.93 30.18
GBP United Kingdom 46.86 48.38 47.10500 47.22750 47.82250
EUR Euro Zone 39.74 40.87 39.88875 39.98500 40.51750
JPY Japan (:100) 35.38 36.81 35.65250 35.73625 36.40625
HKD Hong Kong 3.78 3.97 3.83875 3.85125 3.89625
Comments

Banking

APAC corporates likely to improve in 2021

Moody’s Investors Service says in a new report that credit conditions in APAC will improve in 2021, supported by the gradual recovery of economic activity given the early containment of the pandemic in several Asian economies.

Pr News

Published

on

By

Ongoing fiscal and monetary support in both advanced and emerging markets will also aid improving conditions, but renewed lockdowns in parts of the world have stalled the nascent global economic recovery and create uncertainty around improving credit conditions.

(more…)
Continue Reading

Banking

Can Fintech drive a strong post-COVID-19 recovery in Asia?

The pandemic has highlighted the power of digital technology. Now is the time to harness this power for inclusive growth so that communities, especially in poor and remote areas, can survive the crisis and thrive.

Asian Development Bank

Published

on

To say 2020 has been a challenging year is a massive understatement. The COVID-19 pandemic has quickly undermined development gains from recent decades and slowed growth in many Asian economies.

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,609 other subscribers

Trending