THB: Live Rates for Thai baht!
Get started with exotic forex trading and invest in Thai baht! Here we list interesting facts about the history and background of the currency, its development over time and key factors for the Thai economy. In addition, an updated live exchange rate against the USD, as well as tips on the best broker for trading with THB. Please enjoy and see the live rates for THB below!
USD/THB
Short facts and background history
Thai baht is the official currency of the Kingdom of Thailand, and has been since its introduction in 1897 when it replaced the country’s former currency tical. Like the British pound sterling, the value of the Thai baht originated in silver, which through mass and weight determined the value of the various denominations of the then Thai currency. Historians have been able to trace the country’s original monetary system with silver coins as far back as the 13th century (the so-called Sukhothai period), and also found evidence that the term baht was used even then as a name for one of the many denominations it had – more precisely determined the silver coin that weighed 15 grams. The name baht is believed to have originated in the ancient word “baat”, which is Sanskrit and means unit of weight or measure of weight.
Over the years, the Thai baht has had a fixed exchange rate against a number of different currencies, including the British pound during the first part of the 20th century. During World War II, they chose instead to link the exchange rate to the Japanese yen, and then in the 1950s finally set a fixed value of 20 THB per 1 USD. However, after the extensive financial crisis that hit all of Asia in the mid-1990s – and which resulted in the Thai baht plummeting with a 50% drop in value – however, a floating exchange rate was adopted instead, which has also been maintained since then.
The Thai central bank is responsible for the country’s monetary work and currency issuance; Bank of Thailand, which was founded in 1942 and is headquartered in the capital Bangkok. The official designation according to the ISO 4217-system is THB.
Rapid growth but cyclical economy
Over the past 50-60 years, Thailand has expanded and grown very successfully in several income-generating sectors, and the country is today considered Southeast Asia’s second largest economy. Since the 1980s, the country has undergone a transition from a widespread and traditional agricultural society, to a modern industrial nation and an attractive hub for both startups and foreign investors. Major investments in a modern and high-tech industrial sector have opened up for extensive export trade, which together with the country’s very lucrative tourism industry has driven growth and made Thailand an economy on the rise. In addition to the important manufacturing industry, agriculture and raw material exports of mainly precious stones (including diamonds, rubies and jade) also play an important role in the country’s financial status. However, the fact that large parts of the Thai economy are dependent on cyclically sensitive industries such as exports and tourism, makes the country vulnerable to large fluctuations in the world economy – something that has also been shown by some declining growth in the last two to three years. been more insecure.
Monetär policy
In May 2000, the Bank of Thailand adopted a clear inflation-oriented monetary policy, pursuing the primary objective of maintaining and promoting monetary and financial stability with a view to achieving sustainable economic growth. The level of the government policy rate is determined eight times a year (at intervals of about six weeks) when the seven members of the Monetary Committee meet. Today, the Thai key interest rate is currently 0.5%, and the current inflation rate is just below 1%.
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Forex trading with THB
Trading currency with THB can be an exciting way to diversify both your financial trading in general, and your trading in currencies in particular. Like the country’s economy in general, the Thai baht has also been strong in recent years – partly against the US dollar, but also against the British pound. With the exception of the year 2021 and the extraordinary consequences of the pandemic of covid-19, the baht has steadily strengthened against GBP in the last 5 years – and has gone from just over 45 THB / 1 GBP in 2016 to just over 37 THB / 1 GBP in 2019. Then in 2021, it’s starting to get back to around the same strength as in 2016 – 44 THB for 1 GBP.
As with any other forex trading, choosing a currency broker is of course important when you want to speculate or invest in Thai baht. However, despite the fact that forex trading in baht daily reaches volumes equivalent to approximately US $ 1.6 billion, it is a smaller and more exotic currency when it comes to what private investors and hobby traders trade. The currency is thus not available on all trading platforms, but most major brokers usually have at least 1-2 currency pairs with THB in their offer. If you are interested in trading with THB, the currency broker Skilling is an advantageous choice. The Scandinavian platform offers the USD / THB currency pair at a narrow, competitive spread, with a high-tech platform that enables lightning-fast executions. In the range, you will also find lots of other currencies, commodities, stocks, indices and cryptocurrencies to diversify your portfolio with for optimal risk diversification.
Feel free to take a look at our other currency pages – crammed with good information and tips for trading with each currency. In our currency school you can also learn more about how to get started quickly with currency trading, and what it takes to become a really successful forex trader.
