The Thai baht opened at 34.78 against the US dollar today, strengthening from yesterday’s close of 35 to a six-month high.
The baht’s sudden rise is down to the Bank of Thailand’s (BOT) hiking the policy rate by a quarter point earlier this week.
The BOT remains committed to a gradual monetary tightening policy, raising the policy rate from 1% to 1.25% on Wednesday.
Economic growth this year is expected to be at 3.2%, lower than the prior projection of 3.3%, according to the central bank. The BOT also cut its 2023 growth forecast to 3.7% from 3.8%.
Thailand’s currency is facing pressure from the depreciating US dollar, gold sales, and foreign investors possibly buying more Thai bonds amid continuous drops in the US 10-Year bond yields.
Investors might want to sell the baht now as it edges near the support level of 34.75. Once it hits the support level, it could depreciate again.
Although, US labour data coming out this weak could impact the baht’s value. Low employment rates could help the baht but high levels of employment could weaken the baht, so it’s up to investors whether to hold out and see.
Krungthai market specialist Poon Panichpibool advised investors to use hedging tools in the highly-volatile currency market.
Economists have high hopes for the baht in the long run. Capital Market Research Specialist at Kasikorn Bank Kittika Boonsrang predicts…
“I expect the Thai baht to get a high that could be around 33.50 to 34.00 per US dollar by the end of next year.”
The forecast will only be achievable if Thailand pumps up exports and ramps up tourist arrivals, added Kittika.
Other regional currencies have also strengthened against the greenback amid hopes that China will ease up their Covid-19 restrictions.
Currencies have been highly sensitive to the Federal Reserve’s aggressive monetary tightening this year which was designed to fix high inflation rates in the US.
Source - The Thaiger
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Sunday 4 December 2022
Thai baht soars to six-month high against US dollar
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Wednesday 28 September 2022
Most in Thailand already using Digital Payments
Thai consumers are typically more enthusiastic about using digital forms of payments than the average for Asia, according to Mastercard.
Most Thai consumers have now gone digital when it comes to managing a range of personal financial matters, including paying bills, banking, opening new bank accounts and financial planning, a Mastercard survey has found.
Based on the Mastercard New Payments Index 2022, 81% of consumers in the country have used digital tools for at least one financial task in the last year, with paying bills (78%), banking (75%) and opening new bank accounts (64%) forming the top three.
The latest data on payment habits, attitudes and preferences was derived from a survey of 40 markets across five regions, including seven in Asia-Pacific: Australia, China, India, Japan, New Zealand, Thailand and Vietnam.
Interestingly, when it came to personal financial management, the survey found that Thai consumers were typically more enthusiastic about using digital forms of payments than the regional average.
This same enthusiasm extended to Thai consumers’ broader use of payments, with 94% having used at least one digital payment method such as digital wallets, QR codes, Buy Now Pay Later (BNPL), cryptocurrencies, biometrics and others in the last year, compared to the Asia-Pacific average of 88%.
As well, 80% of Thai consumers increased their usage of at least one digital payment method during the same period, demonstrating momentum.
“Although digitisation brings a broad array of benefits — greater access to e-commerce, more economic transparency, more security — in many ways it is in the everyday tasks where it makes a big difference,” said Aileen Chew, country manager for Thailand and Myanmar at Mastercard.
“In recent years, Thai consumers have increased their usage of digital payment options, often showing high engagement with new and emerging technologies. The survey results indicate that this comfort extends beyond payments, and now includes daily personal financial management, demonstrating the pervasiveness of digital technology in their everyday lives.
“This change is a positive sign for the continued digitisation of the economy, and will help to spur long term, sustainable growth in Thailand.”
When asked about their reasons for using digital methods to pay bills, convenience was the top response (85%) from Thai consumers, followed by the fact that it was seen as more secure or safe (61%), and that it gave consumers more control over their money (56%).
However, concerns remain about security, indicating an opportunity for service providers to offer consumers additional education and reassurance.
Thai consumers are also among the most enthusiastic in the region about using emerging payment technologies, with digital wallets leading (63%), followed by account-to-account payments (55%) and QR codes (54%), the survey found.
Also notable is that Thai consumers have been strong adopters of cryptocurrencies, with 25% using them to pay in the last year, compared to the regional average of 13%.
Source - BangkokJack
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Friday 12 November 2021
PayPal is cancelling personal accounts in Thailand from next year
PayPal will no longer be available to the vast majority of people in Thailand from February 2022.
PayPal recently announced that anyone in Thailand who set up a personal account before March 2021, will no longer be able to receive payments or even have a balance on their account from February 2022.
“PayPal is preparing to relaunch services in Thailand. If your account was opened prior to March 7, 2021, you will need to take some action to continue using your account in Thailand, the company says on its website.
The move essentially means that as of February next year, PayPal will no longer be available to customers with personal accounts in Thailand.
For people who rely on PayPal to receive payments from overseas, they will no longer be able to do so without a registered business account.
Online teachers, freelance workers, digital nomads or even people in Thailand who use PayPal to receive money from friends and family overseas will have to find an alternative.
In order to get a registered business account, people will need to be registered via the Thai government’s Know Your Business (KYB) scheme.
Registration for a business account requires applicants to submit their 13 digit registration number, as well as the identification documents of all company shareholders with more than 25% stake in the company. In addition, anyone who is authorised to use said business account is also required to submit their identification documents.
Furthermore, business accounts will then be charged 7% VAT on all transactions, while domestic transactions can only be made in Thai baht and must be linked to a Thai bank account.
Business customers will also no longer be able to transfer money bank accounts in the United States.
The move has come about after the Thai government overhauled regulation of the country’s fintech sector.
This means that PayPal has been forced to adhere to a new regulatory framework in order to be able to operate in Thailand.
However, speculation online says the move is to do with Thailand cracking down on money laundering.
Last year PayPal announced it was no longer accepting new registrations for accounts from people in Thailand.
Source - ASIAN NOW
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