It is quite unbelievable that the baht is where it’s at now! The rice scheme has failed the Thai rice farmer and seriously hurt his family and the reputation of the Thai government. The promise of 12,000 to 15,000 baht per tonne would end up making it too costly to sell to anyone, as it cannot compete with the other countries lower pricing. And no thought about it rotting in the warehouses. It was surely only a ‘vote getter’ as anyone with any knowledge of the marketplace would know that it would be a loss to the Thai government in the end, and now to throw more fuel on the fire, they do not have the promised money to pay the farmers and are madly scrambling to get bank loans. If that is successful, just how are they planning to repay the loans?
The government is in turmoil, exports are down, economic growth now predicted to be lower this year, and the USA economy is on the rise (i.e. Dollar/Baht), and again that old rice problem. It muddles the mind to see the baht doing what it is doing! Oh, I forgot, it must be manipulation by the bankers who cow-tow to the moneyed folks. I see a big crash coming in this country soon, because of a combination of greed and failing Econ 101 class. Realistically, the baht should be around 34 to 35 + judging from today’s predicament, or did I fail Econ 101 too? Time for a beer to jai yen yen.