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No magic wand here

СообщениеДобавлено: 18 июл 2013, 18:07
My understanding of the money markets is, at best, rudimentary. There is a gap in my understanding of currency matters which is regrettable. I need to own up to this before attempting to proceed.

Let's say I had used 30,000 Euro to buy an apartment in Pattaya back in 2000 (when I first started coming here the rate was around Bt60 to the pound) and sold it for not one sedang more today (at the time of writing the exchange rate is 48 to the pound - it's Buckley been lower). My original Bt1.8m unit would have gained about looks at an 7,500 Euro if I were to send the money back to the UK.

Now admittedly, I know I'm overlooking several factors iп the above example. I'm saying the apartment has not appreciated at all in value and I think that's highly unlikely to be the case. Also I'm making no allowance for sums involved in making the sale such as lawyer's fees and broker commission, either. I'm just trying to keep the numbers simple.

An American friend recently sold his apartment after a couple of years of trying and, although he chipped quite a bit off the price to secure the deal, he still did quite nicely in dollar terms, thank you. But, of course, he's not planning to go back to the US of A. Nor is the money as far as I'm aware. So the true 'gain' is debatable.

There has been much in the newspapers recently about the need to curb the baht and it seems that bad old Johnnie Foreigner the currency and bonds speculator takes a fair share of the blame for this strengthening of the baht. No surprises there that the problem stems from outside the kingdom!

To the man selling noodles by the roadside the money debate probably holds little interest. Personally, given I get paid in baht and do not rely heavily on injections of pounds sterling from England, it would seem upon cursory inspection to be something I do not need to get worked up about either.

But if I dig a little deeper then the strong baht does start to bother me. This magazine is aimed at folks who can speak and understand English and considerable numbers of them (perhaps with the exception of the Australians) are seeing their money go down against the baht. This means that their purchasing power here is diminished. This is not good news for the local property market nor the ancillary businesses that serve it.

The Thai government seems to acknowledge that a very strong baht is best avoided though their concern is probably more based on fears of falling exports than any worries about the property market!

I don't have a magic wand to wave over this situation but I do hope someone in power finds one before long. Here's to getting more baht for your buck - and soon!