The baht falls, media takes a holiday

In a week it has gone from this down to this with no halt in sight. The latest offshore price is roughly this. As you can see, there is little difference any more between offshore rates and this rate, which you can expect from banks in Thailand at the moment.

Here’s the funny part. The higher the baht was, the better for consumers. Just for starters, the higher baht has saved billions on gasoline, diesel and electricity, not to mention the incredible savings on imported goods — cheap ones from China, expensive ones from the US and Europe, and food from around the region.

And of course with food exporters about to ride their biggest windfall profits since the Lanna empire, there is not a peep from the exporters who whined and chewed the carpet and pushed through almost ruinous financial limits on baht trades that hurt the image of Thailand worldwide.

Both Thai white rice and jasmine rice are expected to reach US$1,000 per tonne in the next three months. This is an almost doubling of the price of white rice, from US$556 per tonne and an increase from US$790 per tonne for jasmine rice. Thai rice merchants say prices have risen as much as US$20 per day.

Too bad the farmers won’t get a baht from the higher food prices worldwide. (Archive here).


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