Though analysts remain watchful, Thailand weathers currency panic with little damage

Article Abstract:

Economic experts believe that the Thai economy has largely shaken off the effects of the recent currency panic which hit the world's emerging economies as a result of the Mexican devaluation crisis. Analysts note that the country's domestic money markets are reverting to normal and earlier fears regarding a serious problem with liquidity have proved to be unfounded. However, the panic is expected to have an adverse impact on economic growth and corporate earnings. Investors concerned about Thailand's high current-account deficit have chosen to adopt a wait-and-see attitude with regard to the Thai economy.

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Dollars go far in Bangkok

Article Abstract:

Economists are surprised that Thailand's devalued currency has barely pushed consumer prices upward since economists often anticipate a sharp inflation will be spurred by a devaluation. The bath fell 46% against the dollar from Jul 2 to Dec 31, 1997, an increase of 7.7% from 1996 levels. The stable consumer prices are attributed to Thailand's sluggish economy which is killing consumer demand. Moreover, imports have expired and various firms claim they intend to maintain price hikes to a minimum to protect sales and market share.

Administration of General Economic Programs, Prices, Foreign Monetary Policy NEC, Foreign exchange rates, International economic relations

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Some Thai firms may show resistance to Baht turmoil

Article Abstract:

Investment advisers predict that it is wise to refrain from investing in the Thai market until the Baht settles but for those who have to be in the market or are already in the market, the best choice would be to invest in companies with stable revenues or those whose stocks have already fallen sharply. The Bank of Thailand has made a valiant but mildly successful attempt to correct monetary depreciation but the exchange rate for the Baht is still predicted to fall anywhere between 5% and 20%.

Other Electrical Equipment and Component Manufacturing, Electronics, Investment advice, Investment Advisory Services, Electronic Components and Accessories, Reports, Influence, Electronics industry, Investment advisers

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