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Why does Thai baht remain strong?

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30 minutes ago, jason1975 said:

Can anyone provide any insight on this?

Many currencies have weakened this year (due to Trump's tariffs?) but Thai baht remains strong!

Huge influx of sex tourists created demand for currency, it's why remain strong

  • Author
2 hours ago, vinapu said:

Huge influx of sex tourists created demand for currency, it's why remain strong

I doubt so.

Updates from working guys (in bars and massage shops) are that there fewer customers this year.

I think it is more or less the same against the euro as when I visited 10 months ago and 2 years ago, but I guess you could argue that is strong for a mid-income level country like Thailand.

15 hours ago, jason1975 said:

 

Updates from working guys (in bars and massage shops) are that there fewer customers this year.

it could be  although I haste to say that as long as I remember boys always were complaining " no customers ". And yet, given a chance to make some buck extra, for example by converting ST to LT may times,  cheerfully declined :  " I need to to with my friends to DJ station" or similar excuse

On 10/20/2025 at 2:31 AM, jason1975 said:

Many currencies have weakened this year (due to Trump's tariffs?) but Thai baht remains strong!

Do explain your hypothesis.

If we're measuring currencies against each other, there are probably thousands of currency pairs.  For every pair, if one half weakens, the other half is strengthening.    They can't all be weakening.

Although, if we measure paper currencies against gold, almost all of them are weakening.      I'm told it is quite hard to print gold.  

 

2 hours ago, Rent Boy said:

Do explain your hypothesis.

If we're measuring currencies against each other, there are probably thousands of currency pairs.  For every pair, if one half weakens, the other half is strengthening.    They can't all be weakening.

Although, if we measure paper currencies against gold, almost all of them are weakening.      I'm told it is quite hard to print gold.  

 

"They can't all be weakening."

Indeed!

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Ok, the Thai economy is not doing the best, yet the Thai Bath is strong, let me point to a few explanations.

A weak US dollar, a big part of the baht’s strength comes from the fact that the dollar is weak, it is the world’s reserve currency after all. The THB looks stronger by comparison.

Strong gold prices + Thailand’s gold flows. The Thai economy has significant gold related activity and gold-related flows. Gold prices are at an all time high, and this generates foreign exchange flows (people converting into THB) which pushes up the THB. Gold holds a deep cultural significance in Thai society, where it is used for savings, a vehicle for passing down inherited wealth and for religious purposes. The country is one of the top 10 gold markets in the world. 

Capital inflows: Thailand is seeing more money flowing in than going out, which supports the currency. Exports + services + investment. Money from scam centres in neighbouring countries are also laundered in Thailand. 

Regional currency dynamics, much of the strength is not linked to Thailand’s economy itself but because other dynamics changed (dollar, yen, gold). Also neighboring countries have a high demand for THB, especially Myanmar.
 

 

 

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