Thai Baht Hits New Nine-year High

[chiang mai]

Personally speaking this is all working out just fine for me. I bought my condo at 74.5 baht to the pound and sold it when the exchange rate is 68. I shall keep enough baht for my next year visa by which time it should be back to around 75. It's nice when things work out like that and feel sorry for folks buying in at current rates.

[farang2002]

Since my pension is in US dollars it does not look good. I have checked some currency trader websites (just google Thia baht vs. USD) and the forcast is not good for the dollar. The projection is by the end of July the rate will be at 32 baht/USD. When I first came here 2 years ago it was 42baht/USD. I think this is not because the baht is doing so good it is because the US dollar is doing so badly. In the past 2 years it went from 1.13 Euro to 1.31 Euro. Thank you President Bush

Disappointing...if you're American on a pension. The US government needs to address the trade imbalance and the national debt before things will get better.

[Sing_Sling]

On-shore, Off-shore.

When converting $60k, should that then be done outside or inside the country?

which country???

Well, I live in Singapore but the funds are being transferred from my account in Australia. So, should they be sent as AUD or converted in Oz and sent as THB?

Funny . . . I'm a post-grad economist but don't understand this whole crud.

[Jai Dee]

Rising baht set to break key barrier today

The baht is likely to break the Bt35 barrier today due to massive selling of dollars by exporters concerned the currency will continue to surge against the greenback.

The local unit reached a new nine-year high yesterday when it closed at Bt35.01 against the US dollar, dealers said. It opened the day at Bt35.08 and had almost shot into the Bt34 range when the market closed.

A forex dealer who asked not to be named said exporters were concerned the baht would appreciate further after the expected revocation of Bank of Thailand (BOT) capital controls. Many believe the bank will scrap its 30-per-cent withholding requirement on foreign inflows.

Depreciation of the dollar has also helped push up the baht.

The baht has gained almost 3 per cent since the end of last year when it was trading at Bt36.04 to the dollar.

That was stronger than its quote on December 18 when the central bank introduced the controversial controls to check baht appreciation.

Yesterday's climb was attributed to implementation of a central-bank alternative for investors. From today, the BOT will no longer apply the 30-per-cent withholding requirement on foreign inflows if they are hedged in foreign-exchange swaps.

"They have sold out their dollar income for days with a misunderstanding the fully-hedged measure would not be able to decelerate the strong baht. We may see Bt34 sometime Thursday," the dealer said.

BOT Governor Tarisa Watana-gase said appreciation was a result of exporters selling dollars and not because of capital inflows speculating on the baht. She insisted the 30-per-cent withholding measure remained intact.

She would not say if the bank had intervened in the foreign-exchange market.

Calyon Credit Agricole CIB senior forex strategist Daragh Maher said policy-makers may be too nervous about baht appreciation.

Nonetheless, the baht is expected to be stronger next year.

Thailand's exports grew significantly last year despite the baht's appreciation against the greenback, Maher added.

This indicates exporters were competitive - probably owing to improving productivity or costs, he said.

This year the baht has under-performed, compared with regional currencies following the capital controls, Maher told a global economics and interest-rate seminar hosted by his company and the Public Debt Management Office.

He expected the baht to be around the Bt34.5 mark to the dollar by December next year.

Renewed economic growth in the US and a pickup in Asian gross domestic product next year will contribute to baht appreciation, he said. He expected a stronger domestic economy on the back of lower inflation and interest rates. An improving political situation will boost confidence in the currency.

Maher believed Asian economic growth would suffer a soft patch in the coming months owing to poorer export numbers but will remain resilient overall. Regional growth will be about 7.6 per cent - down from 8.7 per cent last year.

China will suffer a modest slowdown, he said and growth in Japan would be about 2 per cent.

Newly appointed Finance Minister Chalongphob Sussangkarn indicated he wanted a sharp cut in the BOT's policy interest rate.

ING Funds (Thailand) managing director Maris Tarab yesterday expected the BOT to slash rates by 50 basis points on March 21.

Chalongphob meets Tarisa today for talks on the economy, central-bank reform and financial markets.

Finance Ministry spokesman Somchai Sujjapongse said public spending had started to give the economy a boost over the five months between October and February when the government ran a cashflow deficit. Revenues were Bt489.12 billion and expenditures Bt597.55 billion.

Source: The Nation - 15 March 2007

[mumbu]

Rising baht set to break key barrier today

The baht is likely to break the Bt35 barrier today due to massive selling of dollars by exporters concerned the currency will continue to surge against the greenback.

The local unit reached a new nine-year high yesterday when it closed at Bt35.01 against the US dollar, dealers said. It opened the day at Bt35.08 and had almost shot into the Bt34 range when the market closed.

A forex dealer who asked not to be named said exporters were concerned the baht would appreciate further after the expected revocation of Bank of Thailand (BOT) capital controls. Many believe the bank will scrap its 30-per-cent withholding requirement on foreign inflows.

Depreciation of the dollar has also helped push up the baht.

The baht has gained almost 3 per cent since the end of last year when it was trading at Bt36.04 to the dollar.

That was stronger than its quote on December 18 when the central bank introduced the controversial controls to check baht appreciation.

Yesterday's climb was attributed to implementation of a central-bank alternative for investors. From today, the BOT will no longer apply the 30-per-cent withholding requirement on foreign inflows if they are hedged in foreign-exchange swaps.

"They have sold out their dollar income for days with a misunderstanding the fully-hedged measure would not be able to decelerate the strong baht. We may see Bt34 sometime Thursday," the dealer said.

BOT Governor Tarisa Watana-gase said appreciation was a result of exporters selling dollars and not because of capital inflows speculating on the baht. She insisted the 30-per-cent withholding measure remained intact.

She would not say if the bank had intervened in the foreign-exchange market.

Calyon Credit Agricole CIB senior forex strategist Daragh Maher said policy-makers may be too nervous about baht appreciation.

Nonetheless, the baht is expected to be stronger next year.

Thailand's exports grew significantly last year despite the baht's appreciation against the greenback, Maher added.

This indicates exporters were competitive - probably owing to improving productivity or costs, he said.

This year the baht has under-performed, compared with regional currencies following the capital controls, Maher told a global economics and interest-rate seminar hosted by his company and the Public Debt Management Office.

He expected the baht to be around the Bt34.5 mark to the dollar by December next year.

Renewed economic growth in the US and a pickup in Asian gross domestic product next year will contribute to baht appreciation, he said. He expected a stronger domestic economy on the back of lower inflation and interest rates. An improving political situation will boost confidence in the currency.

Maher believed Asian economic growth would suffer a soft patch in the coming months owing to poorer export numbers but will remain resilient overall. Regional growth will be about 7.6 per cent - down from 8.7 per cent last year.

China will suffer a modest slowdown, he said and growth in Japan would be about 2 per cent.

Newly appointed Finance Minister Chalongphob Sussangkarn indicated he wanted a sharp cut in the BOT's policy interest rate.

ING Funds (Thailand) managing director Maris Tarab yesterday expected the BOT to slash rates by 50 basis points on March 21.

Chalongphob meets Tarisa today for talks on the economy, central-bank reform and financial markets.

Finance Ministry spokesman Somchai Sujjapongse said public spending had started to give the economy a boost over the five months between October and February when the government ran a cashflow deficit. Revenues were Bt489.12 billion and expenditures Bt597.55 billion.

Source: The Nation - 15 March 2007

This is a nice article. Most of what armchair economists say in this thread makes absolutely no sense. I like though the comment regarding using Thai baht as a proxy to renbini. It makes sense. Thai baht is not overpriced. Let me repeat some factors which I already mentioned elsewhere which led to appreciation ofThai currency:

1. Lack of current account and budget deficits (couple of last years under Thaksin)

2. Relatively high interest rates (until very recently)

3. Relatively high rates of economic growth

4. General appreciation of regional currencies (Malaysian ringin, Phil. peso, Indon rupiyah). All these currencies were undervalued and current appreciation is in the end of the day due to renbini appreciation and phenomenal growth of Chinese Economy).

5. Boom in real estate, cheap and stable stock market, booming foreign investments, high level of MA activity

(everything under Thaksin. Falling apart rapidly now)

6. Tourism reached unprecented level (under Thaksin)

The argument that US dollar falls because US wants it is only partially correct. US government wants gradual depreciation of US currency to avoid its collapse. It cannot prevent depreciation of US dollar and it is a long-term trend.

The good question, of course, why now when everything falling apart in Thailand so rapidly baht continue to appreciate.

First, there is a certain inertia in forex markets, secondly, regional trend of appreciation is still intact, thirdly and paradoxically

the capital control measure created an artificial deficit of Thai bahts on international markets which is reflected in differences in offshore and onshore rates. But these rates are not independent as some may think. The huge difference would lead to collapse of Thai financial system.

If the idea of the new finance minister is to drive interest rates to zero (which I hope not), then we are going to see a completely new show: Thai baht is used in carry trade. That is, of course, dollar-denominated pensionare living in Thailand

dream come true. Let us just not dream...

[wolfmanjack]

If the idea of the new finance minister is to drive interest rates to zero (which I hope not), then we are going to see a completely new show: Thai baht is used in carry trade. That is, of course, dollar-denominated pensionare living in Thailand

dream come true. Let us just not dream...

Not just a pensioner dream come true but an exporter's as well. I am an exporter and I have had to drop prices to maintain sales at a time when my costs have increased every year for the last 5 years. Now i see that some customers are taking products to Indonesia, vietnam and China to copy. When the baht was 40 to the $ I was getting customers that wanted to move all of their purchasing to Thailand. Now that trend is reversing.

[Old Man River]

Thanks to Dr. Naam and admiraldy for showing that the baht is way too strong against the USD, the pound, and the euro, and it can only be attributed to speculation. Could some hedge funds and other speculators with lots of nerve and deep pockets be doing this so they can make a trillion or two, and then (hopefully!!) let the rate go back to 43:1 against the USD?

PeaceBlondie, almost every day there are good articles in both the Bangkok Post and The Nation explaining what is going on with the THB. I have no question that the two you mention understand the situation, but the information is also readily available in the local press.

Summarizing numerous newspaper reports, exporters that are paid in USD's normally hold their USD's to pay for dollar denominated imports. However, these exporters are now selling their dollars and buying THB (causing the THB to appreciate) thinking the new Finance Minister will scrap the capital controls which would allow offshore demand access to the onshore THB (further driving up the price).

Hedge funds are currently not involved, having been shut out by the capital controls from access to THB onshore. If the capital controls are scraped, they may well come back. On this, time will tell.

[Greenman]

You can bet your botton dollar (excuse the pun) it will sneak up again and those with a bunch of $ stacked away will make plenty.

A new Thai government, put George Bush in a cat and dog retiral home and Bingo everything should go back to normal.

Surely it's in the Thai interest and every other Asian country to see the dollar strengthen and it's only a matter of time before it does.

I have an investor friend who reckons if the dollar takes another huge drop the only thing worth having in any country will be actual gold.

I find the whole thing confusing but my money would be on a dollar recovery by Xmas.........I'm just not sure which year

[Naam]

On-shore, Off-shore.

When converting $60k, should that then be done outside or inside the country?

which country???

Well, I live in Singapore but the funds are being transferred from my account in Australia. So, should they be sent as AUD or converted in Oz and sent as THB?

Funny . . . I'm a post-grad economist but don't understand this whole crud.

do NOT convert and transfer THB; send OZ-dollars!

[Naam]

You can bet your botton dollar (excuse the pun) it will sneak up again and those with a bunch of $ stacked away will make plenty.

not necessarily. but holding dollars in certain assets gives you the advantage of a much better yield (2-4%).

[Jai Dee]

Baht strengthens to hit a 9-year high

The baht has strengthened to hit a 9-year high Thursday morning as market players are keeping a close watch on a discussion between the finance minister and the central bank’s governor this afternoon.

A money dealer said the local currency had appreciated and broken through the key resistance level at 35 to the US dollar to stay at 34.96-34.99, the strongest in nine years.

An analyst said exporters continued to sell the greenback heavily for fears that the baht would further strengthen once the measure to ease the capital controls by exempting fully hedged foreign business transactions from the 30 per cent withholding requirement takes effect on Thursday.

In addition, market players are monitoring a result of the meeting between Finance Minister Chalongphob Sussangkarn and the Bank of Thailand governor Tarisa Watanagase to discuss key economic figures, ways to oversee the baht movement, and whether the reserve requirement would be revoked or replaced with other measures.

Deputy Prime Minister and Industry Minister Kosit Panpiemras said the strengthening of the baht now had not yet affected the country’s exports.

Mr. Kosit said he believed the central bank had always monitored the currency movement and had a contingency measure to cope with the fluctuation.

Source: TNA - 15 March 2007

[marquess]

Baht strengthens to hit a 9-year high

The baht has strengthened to hit a 9-year high Thursday morning as market players are keeping a close watch on a discussion between the finance minister and the central bank’s governor this afternoon.

A money dealer said the local currency had appreciated and broken through the key resistance level at 35 to the US dollar to stay at 34.96-34.99, the strongest in nine years.

An analyst said exporters continued to sell the greenback heavily for fears that the baht would further strengthen once the measure to ease the capital controls by exempting fully hedged foreign business transactions from the 30 per cent withholding requirement takes effect on Thursday.

In addition, market players are monitoring a result of the meeting between Finance Minister Chalongphob Sussangkarn and the Bank of Thailand governor Tarisa Watanagase to discuss key economic figures, ways to oversee the baht movement, and whether the reserve requirement would be revoked or replaced with other measures.

Deputy Prime Minister and Industry Minister Kosit Panpiemras said the strengthening of the baht now had not yet affected the country’s exports.

Mr. Kosit said he believed the central bank had always monitored the currency movement and had a contingency measure to cope with the fluctuation.

Source: TNA - 15 March 2007

Walked past the bank at Mor Chit at lunch time and they were selling the pound at 67 and buying at 66, some one is making a killing? As the real rates are around 64/63!

http://newsvote.bbc.co.uk/2/shared/fds/hi/.../12/default.stm

[Hurricane51]

Baht strengthens to hit a 9-year high

The baht has strengthened to hit a 9-year high Thursday morning as market players are keeping a close watch on a discussion between the finance minister and the central bank’s governor this afternoon.

A money dealer said the local currency had appreciated and broken through the key resistance level at 35 to the US dollar to stay at 34.96-34.99, the strongest in nine years.

An analyst said exporters continued to sell the greenback heavily for fears that the baht would further strengthen once the measure to ease the capital controls by exempting fully hedged foreign business transactions from the 30 per cent withholding requirement takes effect on Thursday.

In addition, market players are monitoring a result of the meeting between Finance Minister Chalongphob Sussangkarn and the Bank of Thailand governor Tarisa Watanagase to discuss key economic figures, ways to oversee the baht movement, and whether the reserve requirement would be revoked or replaced with other measures.

Deputy Prime Minister and Industry Minister Kosit Panpiemras said the strengthening of the baht now had not yet affected the country’s exports.

Mr. Kosit said he believed the central bank had always monitored the currency movement and had a contingency measure to cope with the fluctuation.

Source: TNA - 15 March 2007

Walked past the bank at Mor Chit at lunch time and they were selling the pound at 67 and buying at 66, some one is making a killing? As the real rates are around 64/63!

http://newsvote.bbc.co.uk/2/shared/fds/hi/.../12/default.stm

I don't understand what you mean by "real" rates. Bangkok Bank lists their current rates on their website (http://www.bangkokbank.com/Bangkok+Bank/Personal+Banking/Foreign+Exchange/FX+Rates/default.htm) and they show their TT buying rates and selling rates at 67.5 and 68.1 respectively, as of 8:30 AM.

Are you talking about walking up to the counter and handing them pound notes? You'll receive the worst possible exchange rate in that scenario (outside of one of the money changing booths).

[Sing_Sling]

On-shore, Off-shore.

When converting $60k, should that then be done outside or inside the country?

which country???

Well, I live in Singapore but the funds are being transferred from my account in Australia. So, should they be sent as AUD or converted in Oz and sent as THB?

Funny . . . I'm a post-grad economist but don't understand this whole crud.

do NOT convert and transfer THB; send OZ-dollars!

Thanks. Do I need an AUD account or will it be automatically be changed into baht upon entry int the comoany account in Th?

[andyIslandMan]

Hi all

I am looking to pay the balance on a house in Thailand (1 million+ baht) in the next few weeks and have been watching both xe.com and this thread intently trying to work out the best way of getting my UK Pounds into Thai Baht and am still none the wiser

Last time we wired money from our UK bank (natwest) account across we got a ridiculously low rate so should I look into trying to use the embassy as someone suggested then can I send it on to the Thai Bank accounts?

Another post is talking about sending OZ dollars then converting which is what wiring a set amount in Thai Baht is I think isn't it as they convert the Baht amount into the currency of you home account using the bank's own exchange rate?

Lastly maybe a stupid question but do any UK banks give better exchange rates than Natwest or are they all using about the same?

Cheers in advance

[Hurricane51]

Hi all

I am looking to pay the balance on a house in Thailand (1 million+ baht) in the next few weeks and have been watching both xe.com and this thread intently trying to work out the best way of getting my UK Pounds into Thai Baht and am still none the wiser

Last time we wired money from our UK bank (natwest) account across we got a ridiculously low rate so should I look into trying to use the embassy as someone suggested then can I send it on to the Thai Bank accounts?

Another post is talking about sending OZ dollars then converting which is what wiring a set amount in Thai Baht is I think isn't it as they convert the Baht amount into the currency of you home account using the bank's own exchange rate?

Lastly maybe a stupid question but do any UK banks give better exchange rates than Natwest or are they all using about the same?

Cheers in advance

Do you have an account in a Thai bank? I doubt you will get a better exchange rate by converting to Thai baht before you transfer funds to Thailand. Here's what I do.

I have an account in a Thai bank (Bangkok Bank) and my account in my US bank. I've set up the Bangkok Bank account (they have a New York branch) as one of the external banks I can transfer funds to from my US bank. When I want to transfer funds, I just go online to my US bank's website, and tell them how much, and that's it.

I am charged $3 service fee by my US bank, another $5 by the New York branch of Bangkok Bank, and another .25% (minimum 200B, maximum 500B) by Bangkok Bank here in Thailand. That is for a 3-day transfer time from my US bank. Once initiated by my US bank, there is no delay in getting it to my account in Thailand, other than the one associated with the time differential/business hours. If I want it faster, then the service fee charged by my US bank is substantially more.

The exchange rate is Bangkok Bank's current prevailing rate at the time the money is deposited in my account here.

If you call around or visit the Thai banks, you can get information on their policies and service fees.

[Jai Dee]

Export Sector slightly affected by the strong baht

The President of agricultural and food business under Thai Chamber of Commerce, Mr. Pornsin Pacharintanakul (พรศิลป์ พัชรินทร์ตนะกุล), indicates that the strengthening of baht currency has affected the export, especially the agricultural products.

Mr. Pornsin says that private sector needs help from the government by requesting it to reduce interest rate to 1 percent and lift the 30% reserve rule.

As for the National Legislative Assembly (NLA)’s proposal to amend foreign business Act, Mr. Pornsin says if the amendment could lead to more transparency and appropriate direction to the national economy, then the amendment would be authorized. However, he says that the government should give time for private sector to adjust its business as well.

Source: Thai National News Bureau Public Relations Department - 15 March 2007

[Jai Dee]

Baht breaks 35 level to hit new nine-year high

The Thai baht hit a new nine-year high against the dollar, breaking past the 35 barrier on Thursday amid expectations the Bank of Thailand would further ease its capital controls, dealers said.

The Thai currency peaked at 34.96 to the dollar in morning trade, up from Thursday's finish at 35.00-02.

"The baht broke the 35 level to the dollar this morning after exporters sold dollars heavily on worries that the Thai currency would get stronger after the central bank further eases capital controls," said a Bangkok Bank dealer.

"The Thai baht moved in the opposite direction as other Asian currencies, which fell against the dollar this morning," the dealer said, adding the baht was still trading at a nine-year high of 35.00-03 by mid-day.

The Bank of Thailand and the Finance Ministry were set to meet later Thursday to consider a proposal to allow investors to avoid a 30-per cent witholding requirement if their investments are fully hedged against changes in the value of the baht.

The capital measures sparked the biggest-ever one-day drop on the Thai bourse in December.

The plunge forced the central bank to quickly lift the regulations on money brought into Thailand to buy stocks, an embarrassing U-turn that damaged the government's credibility in the eyes of investors.

Most of the other controls have since been reversed or modified, creating some further confusion.

The baht, which rose nearly 12 per cent over the past year, got stronger this week on expectations that the new Finance Minister Chalongphob Sussangkarn would totally lift the remaining capital controls.

Chalongphob has previously come out against the capital controls but has sent conflicting signals on his policy since taking office last week.

Exporters expect the strong baht will hurt Thailand's overseas shipments which are targeted to grow by 12.5 per cent this year.

Exports are the main driver for Thailand's economy, which the government projects will expand 4.0-5.0 per cent in 2007.

Source: The Nation - 15 March 2007

[Naam]

On-shore, Off-shore.

When converting $60k, should that then be done outside or inside the country?

which country???

Well, I live in Singapore but the funds are being transferred from my account in Australia. So, should they be sent as AUD or converted in Oz and sent as THB?

Funny . . . I'm a post-grad economist but don't understand this whole crud.

do NOT convert and transfer THB; send OZ-dollars!

Thanks. Do I need an AUD account or will it be automatically be changed into baht upon entry int the comoany account in Th?

no need to have an AUD account.

[andyIslandMan]

Thanks Hurricane for that information.

We don't currently have a Thai Bank account as we are not due into Thailand for another 10 days or so when we will inspect the property and if all is well make the money transfer.

Under the terms of our property sale we will have to wire the money directly to the property agent - this would normally be from our UK bank but I will see if I can find any Thai banks with a presence in the UK as the method you described seems to make sense to me.

[xbusman]

One primary thing all us armchair economists have to remember is that information, particularly financial information, is tightly controlled and "massaged". The data collection systems are very crude, how many times do we go get a tabian lot and fill out hundreds of forms with rubber stamps and signatures and copy of your DNA tests, and have to realize that tabulation and evaluation of that sort of data is about impossible. Computers are used so infrequently that any economic information even the powers to be have is only rough estimations.

Who can forget the strange figure released recently which shows exports rising around 16% when measured in US dollars? Digging deeper, if inflation is 5% and the currency has appreciated 20%, we are looking a 10% reduction in exports, and that at around 38 baht per dollar.

The real story is out there, you can bet Tarisa and others have a pretty good idea of what is going on but you will never hear about what is happening until the books come out years later. There are lots of ways to get a perspective on what is happening. A very quick and dirty test is to compare the classified section of newspapers over time. Five years ago there were ten or fifteen pages of help wanted ads and maybe one page of properties for sale. What does it look like this week? Who is hiring? See a strange proportion of NGOs?

I think about the only thing we could all agree on is that the baht has appreciated dramatically against almost all currencies. That appreciation is contrary to all the known fundamentals of 1. Stable government, 2. Improving productivity 3. strong infrastructure and all the other factors that make a country competitive on the world market. That appreciation is now, or will shortly, have a profound effect on exports and tourism which together compromise around 70% of the GDP. It is obviously a speculative rise.

If the baht remains strong or continues to appreciate, we will observe 70% of the GDP evaporate. Today I read about a sewing tycoon that has quit the garment business and is moving into.... real estate speculation. It will go away, to places like China and Vietnam with a breathless rapidity that will devastate every level of Thai society. OR if the baht weakens into some kind of competitive range it could be a soft landing.

I know this, the BOT is facing some terrible decisions and dilemmas. While these knee jerk actions such as the 30% capital controls might appear to be capricious, they have the real numbers staring them in the face. Knowing Thailand, problems in the economy have been ignored far too long until people are forced to act, and by then, its usually too late.

[Sing_Sling]

On-shore, Off-shore.

When converting $60k, should that then be done outside or inside the country?

which country???

Well, I live in Singapore but the funds are being transferred from my account in Australia. So, should they be sent as AUD or converted in Oz and sent as THB?

Funny . . . I'm a post-grad economist but don't understand this whole crud.

do NOT convert and transfer THB; send OZ-dollars!

Thanks. Do I need an AUD account or will it be automatically be changed into baht upon entry int the comoany account in Th?

no need to have an AUD account.

Thank you . . . with jittery fingers I activate the internet transfer . . . have not lost money here yet in business and this one should be a nice one as well.

[Khun Bob]

Apologies - it was a bad joke - this is the rate the embassy uses to conver services they offer in GBP to THB - the highest possible rate in the last 2 years - when in reality it should be more like 68/69 now...

Hi all

I am looking to pay the balance on a house in Thailand (1 million+ baht) in the next few weeks and have been watching both xe.com and this thread intently trying to work out the best way of getting my UK Pounds into Thai Baht and am still none the wiser

Last time we wired money from our UK bank (natwest) account across we got a ridiculously low rate so should I look into trying to use the embassy as someone suggested then can I send it on to the Thai Bank accounts?

Another post is talking about sending OZ dollars then converting which is what wiring a set amount in Thai Baht is I think isn't it as they convert the Baht amount into the currency of you home account using the bank's own exchange rate?

Lastly maybe a stupid question but do any UK banks give better exchange rates than Natwest or are they all using about the same?

Cheers in advance

[Khun Bob]

Bangkok Bank have a branck in London - but i'm not sure if you can open a thai based account with them - best call and find out - and post back here - google will give you the contact details

Also it may be possible to leave an instruction with your bank to activate a transfer remotely or for you to fax the instruction through - then you can see the property and decide what you want to do - once you have transferred the money to the property co what guards/guarntees do you have then. Best to have in an account you control and to give a deposit, then you are more in control and have less risk if things go wrong.

Read this forum for advice on getting a bank account in thailand - kasikorn is best IMHO

HTH

May I ask if your property agent is a thai for a foreigner ?

Thanks Hurricane for that information.

We don't currently have a Thai Bank account as we are not due into Thailand for another 10 days or so when we will inspect the property and if all is well make the money transfer.

Under the terms of our property sale we will have to wire the money directly to the property agent - this would normally be from our UK bank but I will see if I can find any Thai banks with a presence in the UK as the method you described seems to make sense to me.

Edited March 16, 2007 by Khun Bob

[Jai Dee]

Finance Ministry, BoT back dual measures to stem baht speculation

The Finance Ministry and the Bank of Thailand share a common view that the 30 per cent reserve requirement and the fully hedged measure should be implemented side-by-side to stem the baht speculation.

Speaking after meeting Bank of Thailand Governor Tarisa Watanagase, Finance Minister Chalongphob Sussangkarn said a main issue they discussed was how to adopt the appropriate monetary policy to prevent market volatility.

He conceded the central bank is directly responsible for implementing the policy. Other state agencies cannot instruct the bank, he said, but they can offer views only.

He denied news reports that the ministry had pressed the central bank to end the capital controls, saying the release of the reports is aimed to fuel speculation in the baht.

He affirmed the ministry had never pressed the central bank to revise the capital controls.

At present, the bank had relaxed the withholding requirement and offered an alternative for foreign capital inflows.

Dr. Chalongphob admitted the best approach to address the market volatility had not yet be found and viewed the speculation and fluctuation in the money market had caused heavy burdens to medium-sized countries.

Now, neighbouring countries had attempted to learn how to cope with the market volatility. Some might opt for a similar approach to that Thailand had adopted since they viewed it had worked.

In the past 3-4 months, he said, the central bank had gained much experience in supervising the baht movement.

The ministry of finance is willing, he said, to support measures adopted by the bank to curb the market volatility.

Source: TNA - 16 March 2007

[Flysiam]

In the past 3-4 months, he said, the central bank had gained much experience in supervising the baht movement.

Source: TNA - 16 March 2007

I am sure they have experience in supervising the movement...... someone remind which way it has been moving????

[Losangels]

In the past 3-4 months, he said, the central bank had gained much experience in supervising the baht movement.

Source: TNA - 16 March 2007

I am sure they have experience in supervising the movement...... someone remind which way it has been moving????

Does this mean officials at BOT have only 3-4 months experience supervising the baht movement What are they doing? Supervising on the trial and error basis

[Flysiam]

In the past 3-4 months, he said, the central bank had gained much experience in supervising the baht movement.

Source: TNA - 16 March 2007

I am sure they have experience in supervising the movement...... someone remind which way it has been moving????

Does this mean officials at BOT have only 3-4 months experience supervising the baht movement What are they doing? Supervising on the trial and error basis

Most likely. Before that they were gaining 3 - 4 months of experience supervising sometihng totaly different - before they failed in that and then shuffled to their new position of expertise.......

[0Mix1up]

Its good for well heeled Thais looking to buy imported stuff, which I would assume is the people supervising.

Maybe there will be an influx of Thai tourists to 2nd world countries like Australia!

[Jai Dee]

Thai baht continues to hit new nine-year high

The Thai baht continued to hit new nine-year highs against the dollar Friday.

The baht was quoted at 34.92-94 to the dollar in late morning trade after breaking the 35 barrier on Thursday when the unit closed at 34.98-35.01.

"The baht continued to rise against the dollar due to sustained speculation that the Bank of Thailand would soon end the capital controls," said Sukhbir Khanijoh, a senior analyst at Kasikorn Securities.

The central bank in December introduced stringent currency rules aimed at halting gains in the Thai baht, which has soared nearly 12 per cent over the past year.

Central bank governor Tarisa Watanagase and Thailand's new Finance Minister Chalongphob Sussangkarn have repeatedly said the government would keep the currency meaures to rein in the rising Thai baht.

But dealers said market players believed the opposite.

"Investors see that the capital controls are only temporary measures and they don't believe what the authorities are saying," said a Bangkok Bank dealer.

Sukhbir from Kasikorn Securities said investors were betting that the central bank could end the currency rules "anytime," adding repeated comments from financial authorities were only fueling ongoing speculation.

The capital measures required 30 per cent of all incoming investment to be held by financial institutions for up to one year but foreign investors saw them as a steep tax on their equity investments.

They quickly dumped shares, triggering a massive sell-off in December with market losses worth a staggering 23 billion dollars.

Investors initially cheered Chalongphob's appointment as finance minister since the former World Bank economist had previously come out against the capital controls.

But the new minister disappointed investors by saying Thailand still needed the capital rules to control the volatile currency.

Source: The Nation - 16 March 2007