Its around 2 1/2 decades since Thailand’s currency collapsed on July 2, 1997, The baht plummeted from Bt25 per US dollar to around Bt50 before eventually recovering to the Bt30-Bt32 level we see now. In recent years, however, the baht’s appreciation has had an adverse impact on exports. The fundamentals of the Thai economy, which are still very weak since 1997, has not really impacted the Thai Baht and this is the Bermuda triangle Question -Why Not?. Predominantly middle class economy-not changing, totally dependent on Tourism and huge Constitutional freedom issues, Corruption and add to that an aging society, high cost of labor, Thai Baht does seem to be over rated and over protected. Hence the question why the Baht is not around 37-38 to the greenback!. Also we must not forget that the Bank of Thailand has very high reserves that will certainly lead to an alarming rise in inflation and house hold debt when entering the Economy...Case study similar to the Swiss economy.

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