Why such a lousy rate of exchange - Ajarn Forum

sunasiafash · 10th October 2008, 20:07

When I came here 2 weeks ago it was 63 bht to British pound , today its 57 bht. Now I know the western economies are not exactly doing well but its not exactly a bed of roses politically and economically in Thailand at the moment. Its not good news for us still living on foreign currency here , maybe we need another military coup and get back up to 70 bht to the British pound

rogerman · 10th October 2008, 20:13

If you look at the stock markets ALL around the world, you'll find that this is getting close to a stock market crash. European countries have just started crashing after asia. Life is a financial shyt bucket all around the world now

buddahas · 10th October 2008, 20:47

Because your British pound is overvalued.

aging one · 10th October 2008, 21:12

Quote:

Originally Posted by sunasiafash

When I came here 2 weeks ago it was 63 bht to British pound , today its 57 bht. Now I know the western economies are not exactly doing well but its not exactly a bed of roses politically and economically in Thailand at the moment. Its not good news for us still living on foreign currency here , maybe we need another military coup and get back up to 70 bht to the British pound

Fun isnt it?. Buy them now if you trust the pound. And then sell when it rises again.

sunasiafash · 10th October 2008, 21:15

ummm really, I think there maybe other reasons , the US$ managed to fool the world with its overvaluation for many years , but the "pennys dropped" to use an idiom (or maybe cent ) in the eyes of the world and the realization at the weakness of its economy built on sand, I predict it will never regain its same dominance.

Dorkers · 10th October 2008, 21:43

Trillions of pounds and dollars being pumped into economies from goverments to help ease the financial crisis. All stemming from our friends in the US mortgage/loan sector lending money to people who could not afford to pay it back...at least that is what we have been told.. Writing has been on the wall for a while.. Got a friend in the financial side of things here who is adament that the bubble will burst in China sooner than later which will put another spin on things too..

Pound has gone down...

Aussie Dollar is on a roller coaster too.. Was up around 28 - 29baht now dropped to 22.5.
Against the US dollar earlier this year it was 96c US to the Aussie $... now 68..

I used to work in the Visa/Mastercard caper ... all the international credit card transactions are converted to $US first and then the $US is matched against the currency of your transaction. So you get doubley burnt if the US$ goes up against your home currency and then the Baht (for example) is strong against the $US.

Hope that makes sense..

I am not that cashed up so not much of an impact for me anyhow...

robsam · 10th October 2008, 21:45

Quote:

Originally Posted by sunasiafash

maybe we need another military coup...

Sounds like the shmucks in the USA who said "maybe we need another war to stimualte the economy". That logic has lead to the US being 11 trillion dollars in debt (and counting!) and the rest of the economic world flushing down the toilet along with the US.
Check the business page of Google News...stock markets everywhere are crashing. It doesn't take Einstein to figure what's happening. The Thai baht is relatively strong/stable compared to its western counterparts.

i1der · 10th October 2008, 22:14

Quote:

Originally Posted by Dorkers

I am not that cashed up so not much of an impact for me anyhow

me too

Grammar Monster · 11th October 2008, 02:59

The OP must be in the finance industry as it is ideas just like that that have wiped trilions off the value of stockmarkets. I'll be investing in gold for the moment.

buddahas · 11th October 2008, 04:12

Quote:

Originally Posted by Grammar Monster

The OP must be in the finance industry as it is ideas just like that that have wiped trilions off the value of stockmarkets. I'll be investing in gold for the moment.

I hope the only gold you'd be buying is physical gold, not stocks.

Gold stocks are the next bubble in the making.

Chang · 11th October 2008, 06:10

Currencies fluctuate. You'll get used to it. As a general rule of thumb I give below the Chang currency converter:

ThB 1 = $ 25 - 40 or £ 50 - 70

$ = £ 1.40 - £ 2.00

Your currency may be devalued if you fail to maintain repayments on a loan used to purchase it.

Killing Me Softly 101 · 11th October 2008, 06:21

Quote:

Originally Posted by Chang

As a general rule of thumb......

Don't take shop from a teacher without one.

Dollar `Bear Market Is Over,' Sell Euro, U.K. Pound, RBS Says
By Anchalee Worrachate

Quote:

Oct. 10 (Bloomberg) -- Investors should buy the dollar while selling the euro and the pound because interest rates in Europe and the U.K. will fall faster than in the U.S., according to Royal Bank of Scotland Group Plc.
The dollar will strengthen to $1.25 per euro and $1.58 per pound by the end of next year, David Simmonds, head of currency research in London at the bank, wrote in an investor report. The U.S. currency traded at $1.3507 per euro and $1.7031 against the pound today.

That is one opinion of the trend.

aging one · 11th October 2008, 10:57

Does not sound that bad to me. I just dont understand the type of economics we are involved in right now.

i1der · 11th October 2008, 11:41

All I know is to lay low for the next 5 years.

Killing Me Softly 101 · 11th October 2008, 12:49

Quote:

Originally Posted by aging one

I just dont understand the type of economics we are involved in right now.

Panic mode.

On the Oct. 10, Lehman's outstanding derivatives were settled at 9.5 cent on the dollar. Some have suggested that the stock market selloff was so that the players could amass the 400 billion in cash to meet their contract obligations. So lets ay 400 Billion down and get this 61.6 Trillion to go.

Quote:

The volume of trades in the worldwide market fell to $54.6 trillion from $62 trillion in the first half, the International Swaps and Derivatives Association said in a statement yesterday.

ttp://www.bloomberg.com/apps/news?pid=20601087&sid=a3PO453H_A58&refer=home

Sometimes the players hold both sides:

Quote:

Cutting Contracts
TriOptima AB, a Stockholm-based company formed to help banks cancel outstanding derivatives, said it cut $17.4 trillion in credit swap contracts during the first half.

Quote:

Other derivatives markets grew, ISDA said in its statement yesterday. The notional amount of derivatives used to hedge against changes in interest rates increased 22 percent during the first half of 2008 to $464.7 trillion. Contracts linked to equities grew by 19 percent to $11.9 trillion.

Note that some derivatives are unrelated to this crisis. All insurance contracts represent derivatives for example. Someone has assumed risk that if a specific event happens, then they will pay. Like flood insurance or life insurance. It is the ones related to debt that are of the greatest concern to the financial market. And those derivatives are the ones unwinding like in Lehman, AIG, WaMu.