After the Thai baht’s meteoric rise last year, in the last month, it’s begun to sink again. Starting out the month at 29.7 baht per US $1, in the last week the Thai baht has fallen to over 30.6 baht per US $1 and it looks as though it may continue to fall in the weeks ahead.
No complaints from us, as all of our income comes from investments overseas. It’s also a boon to the Thai exports industry whose products were getting just too expensive for overseas buyers due to the too-strong baht.
In 2010, many companies around Thailand lost money in export revenue due to the Thai baht being ridiculously strong and exports from China being far cheaper.
This week though, the baht is not only up against the dollar but also up slightly against the British pound and the Aussie dollar. It’s currently trading at around 47.9 baht per UK pound.
We’re hoping the Thai baht continues to fall. It benefits Thailand with more tourist money being spent, due to a better exchange rate, and in an increased export market as Thai products become cheaper again.
It also benefits those of us who live here, or spend a lot of time in Thailand, and live on an overseas income. In the last week alone, my buying power has gone up around 4%, which means I get to pay for a few more meals out over the month for the same amount of US dollars or UK pounds I was spending last month.
Other foreigners living, working or travelling in Thailand will see the same benefit. A benefit Thai businesses should also be recipients of.