Thai baht

Thai baht
฿
The baht (บาท, ; sign: ฿; code: THB) is the official currency of Thailand. It is divided into 100 satang (สตางค์, ). The issuance of currency is the responsibility of the Bank of Thailand. SWIFT ranked the Thai baht as the 10th-most-frequently used world payment currency as of January 2019.

The Thai baht, like the pound, originated from a traditional unit of mass. Its currency value was originally expressed as that of silver of corresponding weight (now defined as 15 grams), and was in use probably as early as the Sukhothai period in the form of bullet coins known in Thai as phot duang. These were pieces of solid silver cast to various weights corresponding to a traditional system of units related by simple fractions and multiples, one of which is the baht. These are listed in the following table:

That system was in use up until 1897, when the decimal system devised by Prince Jayanta Mongkol, in which one baht = 100 satang, was introduced by his half-brother King Chulalongkorn along with the demonetization of silver bullet coins on 28 October 1904 after the end of silver bullet coin production by the opening of Sitthikarn Royal Mint in 1857. However, coins denominated in the old units were issued until 1910, and the amount of 25 satang is still commonly referred to as a salueng, as is the 25-satang coin.

Until 27 November 1902, the baht was fixed on a purely silver basis, with 15 grams of silver to the baht. This caused the value of the currency to vary relative to currencies on a gold standard. From 1856 to 1864, the values of certain foreign silver coins were fixed by law, with 5 baht = 3 Spanish dollar = 7 Indian rupees. Before 1880 the exchange rate was fixed at 8 baht per pound sterling, falling to 10 to the pound during the 1880s.

In 1902, the government began to increase the value of the baht by following all increases in the value of silver against gold but not reducing it when the silver price fell. Beginning at 21.75 baht per pound sterling, the currency rose in value until, in 1908, a fixed peg to the British pound sterling was established of 13 baht per pound. This was revised to 12 baht in 1919 and then, after a period of instability, to 11 baht in 1923. During World War II, the baht was fixed at a value of one Japanese yen on 22 April 1942.

From 1956 until 1973, the baht was pegged to the US dollar at an exchange rate of 20.8 baht = one dollar and at 20 baht = 1 dollar until 1978. A strengthening US economy caused Thailand to re-peg its currency at 25 to the dollar from 1984 until 2 July 1997, when the country was affected by the 1997 Asian financial crisis. The baht was floated and halved in value, reaching its lowest rate of 56 to the dollar in January 1998. It rose to 30 per dollar in January 2021.

The baht was originally known to foreigners by the term tical, which was used in English language text on banknotes until the series 2 1925.

Country
  • Thailand
    Thailand, historically known as Siam and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning 513120 km2, with a population of almost 70 million. The country is bordered to the north by Myanmar and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the west by the Andaman Sea and the extremity of Myanmar. Thailand also shares maritime borders with Vietnam to the southeast, and Indonesia and India to the southwest. Bangkok is the nation's capital and largest city.

    Tai peoples migrated from southwestern China to mainland Southeast Asia from the 11th century. Indianised kingdoms such as the Mon, Khmer Empire and Malay states ruled the region, competing with Thai states such as the Kingdoms of Ngoenyang, Sukhothai, Lan Na and Ayutthaya, which also rivalled each other. European contact began in 1511 with a Portuguese diplomatic mission to Ayutthaya, which became a regional power by the end of the 15th century. Ayutthaya reached its peak during the 18th century, until it was destroyed in the Burmese–Siamese War. Taksin quickly reunified the fragmented territory and established the short-lived Thonburi Kingdom. He was succeeded in 1782 by Buddha Yodfa Chulaloke, the first monarch of the current Chakri dynasty. Throughout the era of Western imperialism in Asia, Siam remained the only nation in the region to avoid colonization by foreign powers, although it was often forced to make territorial, trade and legal concessions in unequal treaties. The Siamese system of government was centralised and transformed into a modern unitary absolute monarchy in the reign of Chulalongkorn. In World War I, Siam sided with the Allies, a political decision made in order to amend the unequal treaties. Following a bloodless revolution in 1932, it became a constitutional monarchy and changed its official name to Thailand, becoming an ally of Japan in World War II. In the late 1950s, a military coup under Field Marshal Sarit Thanarat revived the monarchy's historically influential role in politics. Thailand became a major ally of the United States, and played an anti-communist role in the region as a member of the failed SEATO, but from 1975 sought to improve relations with Communist China and Thailand's neighbours.