Mish's Global Economic Trend Analysis Message Board

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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (64225)	3/5/2007 12:44:04 PM
From: Ice Cube	Read Replies (4) of 116555

An interesting currency trade has developed over the past few months. Since December, the Thai Central Bank (in conjunction with the new Govt.) has decided the Baht was too strong. In their wisdom, they decided to hold the internal exchange rate at around 35 Baht to the dollar. But, outside of Thailand, the current rate is under 33. Inside rate: bangkokbank.com Outside rate: bangkokbank.com So if I am in Bangkok I could take Baht and fly to Singapore and then change it back to dollars, then fly back to Bangkok and trade them back to Baht, then fly back to Singapore.......... on and on......... Over the past few months you would make 6% on every trip (daily). BUT, you are only allowed to take a limited amount out of Thailand, but no one ever checks there anyway. Flights are VERY cheap to Singapore. A lot of expats have been talking about this for a while since the 'artificial' peg was put in place. Even doing $10,000 daily is a decent living. The other part of this is how long the Govt. can keep this going without everyone calling them on their craziness.

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