Two years ago the baht was at 40. Beer was cheap for foreigners. Hotels too, then the dollar and pound slipped against both the baht and Euro, until the baht threatened to seek shelter under 30 baht to the dollar, however the current infaltionary cycle of almost 8% has eroded the baht’s strength against the dollar, which has climbed to 33 giving US pensioners living on 20K/month relief from the vanishing dollar’s sad lack of purchasing power.
None of this is good news for Thailand, since it has to pay for oil imports in dollars and finally means that the Land of Smiles will join the world recession for real in the coming year with hgih prices backed by falling property values.
Get ready for a rough ride and for the dollar to recover 50% of its losses, which means nothing for everything will be more expensive.
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