The Nation: BOT scrambles to regain control

[NewsBot]

Overseas US dollar holdings among planned steps

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[LivinLOS]

King Canute staring at the sea..

[ATMwalking]

This is a broader issue facing many Asian countries, but doesn't it seem like they are particularly clueless at handling it here? Even then they are passing the work to private companies to sell baht.

[LivinLOS]

The SET is racing ahead and the exchange rate is too strong..

So as the currency rises, the SET gets more expensive and less attractive.. Secondly as exports suffer the stock exchange is less attractive so inflows slow down. Yet they want these things to be kept from finding thier equilibrium.

Basically small countries that have low foreign reserves dont have the luxury of price controls, they simply cant afford to fight the liquidity of the markets and any intervention the markets sniff they will push all the harder as they know that the government is losing money to keep something out of balance that they will not in the end succeed at.

They would be far better off using the money they are wasting on currency games (billions of baht lost BTW) in slashing income tax rates for exporters, or simply educating the workforce better, increasing productive infrastructure.

[ATMwalking]

Likely again this current strategy only makes sense if it can be fit into the context of maintaining the elites power.