Answered5 years ago
Why do some people believe that fewer tourists affect the Thai baht's exchange rate?
People are saying to tourists stay away???the less tourists that come the more thai bhat goes up in exchange rate
Answer summary
The discussion revolves around the belief that a decline in tourism affects the exchange rate of the Thai baht. Participants provide varying opinions on the relationship between tourist numbers and currency value, debating whether fewer tourists will lead to a stronger or weaker baht. Factors such as inflation, interest rates, and foreign currency influx are mentioned as significant determinants of exchange rates, while personal experiences of expats highlight the economic impact on local businesses reliant on tourism.
37 repliesnewest first
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Xjwhudkwhry ********
Depends on the kind of tourist...there are more and more white people walking around not wearing masks or having their noses sticking out, ignoring all the rules, acting arrogant, there are people coming with fake vaccination certificates, ones who escape the quarantine, you name it. It will end up with locals treating us ALL badly, they're really making an effort to stop the spread of the virus, they're suffering for it, but it's not respected by those who decided to have their DREAM VACATION amidst the pandemic...
Xjwhudkwhry ********
And why would baht go up anyways? The less demand for something, the cheaper it costs, dunno about the currency, but we can get many good deals EXACTLY because of the lack of tourists
David ********
I have taken advantage of the lack of tourist to travel Thailand and take advantage of great deals. Just glad my wife's family does not relay on tourists like many others here.
Michael ******
Taking into account the credibility of all the data published (and edited) by Thai authorities etc., I would say that a constant manipulation of the exchange rate (e.g. by lying about the Thai foreign exchange reserves) is not out of the question.
Oliver ********
less tourism = less demand for THB = cheaper THB
(but it's a marginal factor compared to relative levels of expected inflation, interest rates, trade balance, economic growth outlook, public debt levels, etc)
(but it's a marginal factor compared to relative levels of expected inflation, interest rates, trade balance, economic growth outlook, public debt levels, etc)
Colleen *********
Less people the better
Peter *******
Steven ******
@Colleen ********
why is that?
Mike *******
I am !!
Jenni ******
"People"
Wilmont ******
Just my opinion but the more foreign currency Thailand has the more they can influence the exchange rate in their favor.
Josh ***********
Look at any graph of currency value , the baht has gone down in value , meaning more baht you get per usd since sand box and test and go were started.
Charlie *********
I'm actually hoping to find it alot quieter to get to see more of it in peace 🙏
Chris *********************
OPSorry for having a rant Darren but yes it does all expats from all over the world that lives in Thailand has money think about the bars and street food vendors that's loosing out due to people saying stay away it doesn't affect me and my family but it affects a lot since the government has stopped the test and go exchange rate has shot up mate
Darren *******
Exchange rate has got nothing to do with the number of tourists who do or don't come.
John *******
@Darren ******
Last I heard, Thai baht is backed by a basket of currencies and the dollar is one of them.Delvonte ********
@Darren ******
Since this is a tourist-based economy YES it does. Government manipulation happens all the time and many government agencies such as the Federal Reserve of The U.S has pointed out manipulation of currency value in South East Asia which explains why their currencies didn't tank significantly during lockdownsDarren *******
@Delvonte *******
nope, the lack of tourists doesn't have an impact on the exchange rate. Check the baht over the last 12 months, not many tourists yet it's gone up and down like a yo-yo. Thailand has large foreign currency reserves which keeps the baht arguably stronger than it should be.Delvonte ********
@Darren ******
I live in The Philippines. The peso has been stable during the pandemic but there were many times I went to grocery store and felt the devaluation at checkoutDelvonte ********
@Darren ******
Hear me out for a sec. You're kind of right but it is just not the full picture. Economics isn't simple. It's a math equation. If the terrorists successful stormed the capital on January 6th and took over The U.S government The U.S dollar would fall. You'd have to be able to explain it.Turkey (#23 in reserves) is dealing with a very volatile currency right now that is causing inflation. You'd again have to be able to explain how their reserves and their currency's value don't share a positive correlation. The reserves have many functions. 1 is to prevent currency volatility,manage import prices, and the other is to help during economic shocks. The currency value is being maintained simply for import purposes but there is devaluation on the local level. Thailand is expected to hit its highest inflation in a decade. I dont want to type any more but I will say that tourists can help to control the inflation. Inflation is a pay cut and it is also devaluationDarren *******
@Jenni *****
no, I'm asking if you can explain how exchange rates work seeing as you felt the need to comment 😊Jenni ******
@Darren ******
I'm still waiting for your explanation of how the exchange rates are worked out 🙄
Adam ********
@Jenni *****
grow upJenni ******
@Darren ******
your a very rude little boy its a shame your mother didn't teach you some mannersJenni ******
@Darren ******
and your reason for being here?Darren *******
@Jenni *****
so you've contributed nothing here and just joined in for some attention. At least that's been cleared up now 👍Jenni ******
@Darren ******
not once did I say that I could explain it. Another assumption on your part 🙄Darren *******
@Jenni *****
I take it you can't explain it and just felt like joining in to be rude then. Oh well, I was looking forward to l your explanation too.Chris *********************
OP@Darren ******
yes it does that's my opinion don't want to argue mate just my opinion
Jon *****
@Chris ********************
Who would decide to go or not go to Thailand by checking the exchange rate ? Not me anyway !Jenni ******
@Chris ********************
dont bother with this Darren Grist, he just loves an argument 🙄Jenni ******
@Darren ******
prime example of you wanting to argue 😂Darren *******
@Jenni *****
you going to explain how exchange rates work or just add another useless comment?
Dave ****************
Am I missing something....the strength of the baht as a currency ...and the exchange rate are two complete different things. The value of the baht is set by the trade markets . The exchange rates are set by the banks or exchange business. Tourist or no tourist might affect the value of the baht ...but the exchange rates ??? How in hell ?
Bobby ********
Chris Topher Ian Fowler. I think the relatively small number of tourists that have been entering Thailand would not have significant effect on the exchange rate. At the moment it probably represents only a few percent of the Thai economy.
Darren *******
@Chris ********************
then your opinion is wrong, especially as the baht has gone up and down in the last 12 months when there haven't been many tourists at all. Straightaway, your opinion has been proven incorrect.
Brendan ********
@Chris ********************
that must be your opinion then of the opinion of the situationActivity
21 joined21
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