GBP HITS ANOTHER LOW

[cyclist]

I looked at the GBP V Baht at 5pm tonight on the FX rates of the Bangkok Bank and to my horror saw that the pound had dropped to 51.86 Baht it has since risen to 52.86.

I tried to find for some solice in historical rates and came across this article. It did not fill me with confidence.

Before 1880 the exchange rate was fixed at eight Baht per Pound sterling, falling to ten to the Pound during the 1880s. A falling silver price further depressed rates, reaching almost twenty-two per Pound in 1902, but after switching to the gold standard, rates stabilised at thirteen Baht to the Pound. After World War I, which hurt other countries much more than Thailand, the rate rose to eleven Baht per Pound where it remained until the onset of World War II.

From the end of World War II until 1980 the Baht was pegged to the US Dollar at an exchange rate of twenty Baht to one Dollar. A strengthening US economy caused Thailand to re-peg its currency at 25 to the Dollar from 1985 until July 2, 1997, when the country was stung by the Asian financial crisis. The Baht was floated and halved in value, reaching its lowest rate of 56 to the Dollar in January 1998. It stabilized again at a rate of about 40 per Dollar, where it has since remained.

This aricle is a little out of date, but just maybe its a readjustment towards pre 1997 rates.