Siam Thailand 1876-1900 Thailand Rama V One Baht Silver Coin.
De Thai baht (THB) is the official currency of Thailand and has a rich history dating back to the Kingdom S in the 13th century. The baht is not only an important part of the Thai economy, but also a reflection of the country's economic development over the years.
In this article we dive into the history, the origins, the rates, the power of the Thai baht and more.
History and origin of the Thai baht
The origin of the baht can be traced back to the Sukhothai Kingdom in the 13th century, when it was introduced as a unit of weight for precious metals such as silver and gold (Bank of Thailand, 2020). In the beginning, the value of the baht was determined by the weight of a certain amount of silver known as "pod duang".
The baht became an official currency in 1897 when the country switched to a modern currency under the reign of King Chulalong Korn (Rama V). This made it the Siamese currency, and later the Thai currency after the country's name change in 1939.
Courses
De exchange rate of the baht has undergone significant changes over the years. In the 50s and 60s, the baht was pegged to the US dollar (USD) at a fixed exchange rate. However, after the collapse of the Bretton Woods system in 1973, Thailand switched to a managed floating exchange rate, valuing the baht against a basket of currencies from its major trading partners.
The 1997 Asian financial crisis had a huge impact on the Thai baht, with the value of the currency falling sharply due to the speculative attacks on the currency and the subsequent floating exchange rate. Since then, the Thai economy has recovered, and the baht has steadily strengthened against other currencies.
Power of the currency
The strength of the Thai baht is largely due to the country's economic stability and growth. Thailand has a diverse and growing economy, with strong sectors such as tourism, agriculture and industry. In addition, Thailand has accumulated large foreign exchange reserves, which contribute to the stability and strength of the baht.
Pichit Kaewbutta / Shutterstock.com
Challenges and prospects for the future
Despite the stability and power of the Thai baht, there are some challenges and concerns regarding the currency. A strong baht can affect the competitiveness of Thai exports, as a higher value of the currency can increase the price of export goods.
The future of the Thai baht will largely depend on the country's economic growth and stability, as well as external factors such as global economic trends and trade relations. It is important for Thailand to promote balanced economic growth while striving for stability in its currency.
Conclusion
The Thai baht is a currency with a rich history and a strong position in the global economy. Thailand's economic growth and stability have contributed to the strength of the baht, although some challenges and concerns remain regarding the future of the currency. By continuing to focus on balanced economic growth and stability, Thailand can ensure that the baht maintains its role as a major currency in the world.
Sources:
- Bank of Thailand. (2020). History of Thai Banknotes. retrieved from https://www.bot.or.th/English/Banknotes/HistoryAndSeriesOfBanknotes/Pages/default.aspx
- Piti Srisangnam. (2017). The History of Thai Money. retrieved from https://www.thai-ai.org/2017/03/09/the-history-of-thai-money/
- world bank. (2021). The World Bank in Thailand. retrieved from https://www.worldbank.org/en/country/thailand/overview
About this blogger
-
Known as Khun Peter (62), lives alternately in Apeldoorn and Pattaya. In a relationship with Kanchana for 14 years. Not yet retired, have my own company, something with insurance. Crazy about animals, especially dogs and music.
Enough hobbies, but unfortunately little time: writing for Thailandblog, fitness, health and nutrition, shooting sports, chatting with friends and some other oddities.
Read the latest articles here
HealthJanuary 21 2025AI brings breakthrough in snakebite treatment
Food and drinkJanuary 21 2025Kaeng som or Gaeng som (sour and spicy fish curry soup)
SightsJanuary 21 2025A must for art lovers: Museum of Contemporary Art in Bangkok
CalendarJanuary 19 2025Agenda: Celebrate Chinese New Year 2025 in Thailand
The value of a coin is the barometer of the health of your economy. Strong economies always have a strong currency. Has always been like this.
The Baht appears to be and remain a strong currency, which is further proof that the future lies in Asia and the past in the West. The Baht will increase in value along with many other Asian currencies.
The baht is not doing so well either, it's just that other currencies are doing even worse. But the Thai economy is not doing well at the moment. The huge debts, all kinds of sectors that have suffered hard blows. The future lies in an increasingly interconnected world.
@Rob,
Feyenoord becomes champion because it is the best in a period and so it goes with a currency. And those who are doing well should invest in themselves and in my opinion the future lies in the power blocs such as ASEAN, EU, US, Japan, Australia/New Zealand (or the Pacific Alliance) etc.
Also fits well with UN climate goals and regional security due to increasing dictators. The future also means that due to the aging of the population, more hands will be working together in the various power blocs of mutual states. That is also a form of solidarity and is a matter of having to accept.
Future in Asia? China is about to invade and the population will decrease to 600 million, after being a factory for 50 years, Thailand and the population have not progressed much, Japan is decreasing the population by 1 million per year and the economy has been at a standstill for 30 years and earning less than in the Netherlands. In addition, the latest developments are now AI again, originated in the West. The economies continue to grow in the West and there is no stagnation or decline. I think I have described the East West situation in a few words.
Moderator: please keep the discussion to the baht.
Thailand with its Bath will only get stronger.
Thailand is in the Asia Union, total population approx. 1 billion.
The Asia Union is a trade group, about 10 Asian countries, each has its own currency or currency.
The Asia Union is also affiliated with the BRICS as the +, or what is also called, the BRICS B.
Thailand also celebrated its 125th anniversary of friendship with Russia in Bangkok last year.
That friendship provides Thailand with high discounts for Russian raw materials.
The tourism sector is more oriented towards the wealthier Chinese, Indians, Russians, Arabs and people from the Asia Union plus the BRICS countries.
The growing economy and the strengthening of Bath as a result will increasingly be due to the cooperating Asia Union, contacts with the BRICS + countries.
Also the development in technology industry, and the huge development in Thailand's Infrastructure.
Also important is that the value of the Thai economy is based on GOLD.
In comparison to the Western economies which are based on a debt economy.
All the strength of the economy, and therefore the Bath, lies in the enormous growth of the MIDDLE CLASS.
And very important, Thai people are happy people.
“The Land of Smiles”
The other side of this optimistic version:
Thailand is in the part of the world where the aging population is the highest in the entire world, surrounded by mere dictatorships that only think about their own survival. The growth in new industries of the future is almost zero and the tourism model seems to be completely exhausted. There is a good chance that the same clique will come to power again after the Axis elections and the chance of economic growth will only become smaller.
The Asia Union? Do you mean ASEAN? That association – Association of South-East Asian Nations has as much cohesion as loose sand, the 10 member countries do their own thing in almost all respects, when it really comes down to it. People paint the most beautiful views at meetings, and then do their own thing. Certainly not a trading bloc like the EU, for example, and certainly not a customs union and Single Market.
Indeed, ASEAN has a long way to go if it is to become a major economic power bloc. Real cooperation and integration with each other is still a long way off. Also no idea where Oprecht gets the “growing economy” from when we read day in and day out that the Thai economy is currently not in a good shape. An economy based on gold? Thai citizens often have gold pieces instead of banknotes, but that's about it. The baht is not linked to gold. The gold standard is something of a long past and in today's world such a link would be total madness (there are more trees to raise about the nonsense of the gold standard).
An economy on debt (credit systems) has been around longer than we work with coins. That goes back many thousands of years. Jan takes something from Piet and we keep track of the account (debt) with tally and the like (here a link with the development of written language). Money came later and was mainly for trade between people who otherwise had no close relationship with each other. For example, passing soldiers, the local people could trade among themselves without money. See: “Debt: The First 5000 Years” by David Graeber.
Speaking of debt and Thailand…
It's not Bath but Baht, why is this so hard to remember?
All well and good and commendable, that 'strong baht'. But who benefits from it, for example from the large foreign reserves of foreign exchange? Certainly not the Thai people. “
I don't understand it very well.
Stories everywhere about Thailand's weak economy and yet one strong Baht?
Or would it be more about the one-sided and therefore risky economy: mainly based on the agricultural sector and tourism?
I first came to Thailand in 2007.
50 baht for one euro, that was easy to calculate, now I've lived there for over 3 years and hope that rate will come back
I first came to Thailand in 1991 and then received 1200 – 1300 baht for a guilder, but converted into Euros this is 27 baht for a Euro.
It makes no sense to say that the baht is strong or weak, it is just trading because if the demand for baht increases, it will increase and vice versa, it is just a snapshot, often the price is influenced by large transactions in shares etc .and is also partly dependent on global interest rates and money flows. In addition, we do not only have to look at the production of a country, but there is more to it, such as investments in Thailand and vice versa by Thais abroad. Whether stock trading, gold trading or currency speculation or purchasing real estate abroad or purchasing debt securities, just a few things.
If someone dares to say that Thailand's economy is doing well then I say this is not correct, for example the economy of Vietnam grew by 8,0% last year and that of Thailand 2,6% and the Netherlands 4,6%. Thailand has been dangling at the bottom of the lists for growth rates of the economies of countries in Asia for decades.
The bath is strong because it is a geographically limited currency and floats, ie the currency is kept as strong or as weak as the local policy nobility wants. What is important is the inflow of foreign currency. Something can be done with that abroad because with the bath you cannot buy a football team in England or a wine castle in France…etc.
What I already mentioned is that the baht is not strong or weak, it is just a medium of exchange in money. And yes, if you still maintain that the baht is strong, then I have a simple comparison, see my earlier response: in 1991 you got converted (from guilders to Euros) 27 baht for a Euro and that is now 37 baht and that indicates that the baht has lost value against the Euro in 30 years.
Earlier this year I visited the Treasury Department museum in Khon Kaen. There were various means of payment on display. Small shells (หอยเบี้ย, hǒi-bîa) that were in use since ancient times, the silver Pod Duang (พดด้วง, Phód Dôewang) clogs/balls which to me look a lot like bearings, but then with a hallmark hammered into them that confirm the silver content. Those phod duang in the display case were from the Sukhothai period (1238-1438), Ayutthaya period (1351-1767) and the Bangkok/Rattanakosin period (1782-1932). In various sizes, most of them smaller than a pea, mostly silver but also some gold. Those Phod Doewang "balls" were abolished in 1904.
There was also the Ngern Hoi (เงินฮ้อย, ngeun hói, from the Lan Xang kingdom (Laos) and ngern Hang (เงินฮาง, ngeun háang) from Vietnam. This currency was still used until the era of Rama IV (1853- 1910) in use in the Isaan, among other places, in addition to various other coins / means of payment.These silver pieces have the shape of, say, a razor shell, with markings that indicate the silver percentage.
There was also Chinese money from the 14th to 20th century: silver Sycee (bowl-like clogs of silver), silver Horseshoe money (kind of square chunks of silver), Vietnamese silver bars (era?). But also money from Lan Na from the 14th-19th century: Tok money (เงินท้อก, Ngeun Thód), button-shaped silver coins. “Flower” money (เงินดอกไม้, ngeun dòk-máai, a circular disk full of markings and curves. Khanom Khrok (เงินขนมครก, ngeun khà-nǒm-khrók), which resembled a miniature bapao of silver… And “bracelet money” ( เงินกำไล, ngeun kam-lai), which look like miniature silver croissants, but of course also the first paper money from the period of Rama IV (1851-1868): Salueng (หมายราคาสลึง, mǎai raa-khaa sà- lǔng) and Feang (หมายราคาเฟื้อง, mǎai raa-khaa fúang. Those last little upright white papers with a lot of black text and red seals/stamps on it.
That baht as being beautiful silver and gold coins is actually something from the 19th century. But until the transition to the 20th century, various means of payment were in circulation. Not surprising, silver is silver, as long as you know the silver content and weight. So I can imagine that along trade routes with the Chinese who visited Thailand, Laos, Vietnam and so on, there were various means of payment in circulation. Or other valuable stuff such as special types of wood (barter trade). Unfortunately, almost everywhere only the period of the king or the kingdom was mentioned, so I was unable to sketch an exact picture of the Thai baht and other coins / means of payment.
But if you know that the money was in circulation in various forms, that coins had various silver (sometimes gold) contents and so on, you can understand why the Thai call money "ngeun" (silver). And that people opted for a certain unit of weight (and purity I assume) of precious metal (the baht) in order to express the price of something. If I really want to make cheese or chocolate out of this, I have to dive deeper into the books…