Baht exchange rate UK - why lower?

[nausea]

I'm just curious. Wiki says:

 

"The Bank of Thailand adopted a series of exchange controls on 19 December 2006, which resulted in a significant divergence between offshore and onshore exchange rates, with spreads of up to 10 percent between the two markets. Controls were broadly lifted on 3 March 2008 and there is now no significant difference between offshore and onshore exchange rates."   https://en.m.wikipedia.org/wiki/Thai_baht 

 

So why the difference?

 

[ukrules]

There are still controls in place, 'broadly lifted' or not....

[nausea]

Thanks for that ukrules. Someone should amend the Wiki entry as it's obviously inaccurate. "Don't Believe Everything You Read on the Internet". Ha!

[marin]

6 hours ago, nausea said:

Thanks for that ukrules. Someone should amend the Wiki entry as it's obviously inaccurate. "Don't Believe Everything You Read on the Internet". Ha!

Since Wiki is peer controlled why dont you change it nausea. Its up to the viewers and readers of Wiki to keep it up to date..

[natway09]

You try buying Baht from a UK Bank in the UK.

Then you will find out who the crooks are

[Suradit69]

On 9/7/2019 at 6:11 AM, nausea said:

 

So why the difference

Currency is traded as a commodity.

 

The rates and the spreads depend on local demand and how quick the turnover of stock will take.  Demand for baht in London or New York is comparatively small which means a bank or currency exchange holding baht notes is likely to not move them quickly so they want a greater profit to compensate for the time they're holding them without profiting from the turnover.  Same applies to baht held on the books, but not as notes. It can be dead money until someone wants to transfer baht.

 

same would apply to someone wanting to buy baht in Thailand using something like Saudi Riyal. Most places would be reluctant to do the exchange and if they did there would be a wide buy/sell spread and miserable value. If they accept Saudi Riyal they're likely going to have a tough time getting rid of it or it will be expensive to dump it on a major bank in Bangkok.

 

Saudis probably buy dollars or Euros at home and exchange them for baht ( or use credit cards) because the market is more fluid and easier, cheaper to trade depending on where and what you're buying or selling.

[rickudon]

The spread between buying and selling rates is about 5% for 'desirable' currencies in Thai like US dollars, Euros and British pound. Less desirable currencies (if accepted at all) like Rupees, Pesos and Rand have spreads of up to 40% at Thai banks. Feel sorry for people from those countries getting shafted so much.

[sometimewoodworker]

1 hour ago, Suradit69 said:

same would apply to someone wanting to buy baht in Thailand using something like Saudi Riyal. Most places would be reluctant to do the exchange and if they did there would be a wide buy/sell spread and miserable value. If they accept Saudi Riyal they're likely going to have a tough time getting rid of it or it will be expensive to dump it on a major bank in Bangkok.

 

Saudis probably buy dollars or Euros at home and exchange them for baht ( or use credit cards) because the market is more fluid and easier, cheaper to trade depending on where and what you're buying or selling.

Not a good choice of a currency, the spread is at only 1.2% and that is hardly miserable, is it?

 

[AAArdvark]

And why is there typically a difference between the "UK" pound and the Scottish pound.? 

[ballpoint]

Just now, AAArdvark said:

And why is there typically a difference between the "UK" pound and the Scottish pound.? 

Because of the difference in value between a pound of sterling silver and a pound of haggis.

[puipuitom]

1 hour ago, AAArdvark said:

And why is there typically a difference between the "UK" pound and the Scottish pound.? 

In 1971 the Scotish pound was even not accepted in shops in Newcastle ( UK).  As these Thai exchanger banks probably also experienced hesitation, when people want te exchange THB into Pounds, and do NOT want Scotish pounds, a good reason for a difference in Echange rates.

Maybe a reason for the Scots to change of Union ?

[puipuitom]

1 hour ago, ballpoint said:

Because of the difference in value between a pound of sterling silver and a pound of haggis.

I really would feel very welcome, when my "Union" members would say this about my nation.

Bye-the-way: even a pound of scrap copper is worth more then the British pound.

[ballpoint]

7 minutes ago, puipuitom said:

I really would feel very welcome, when my "Union" members would say this about my nation.

Bye-the-way: even a pound of scrap copper is worth more then the British pound.

Well, you, as a member of the European "Union", just said it about Britain.

 

And, by the way, I'm not a member of either the UK or EU, so I don't really care how welcome anyone feels. 

[emptypockets]

6 hours ago, marin said:

Since Wiki is peer controlled why dont you change it nausea. Its up to the viewers and readers of Wiki to keep it up to date..

Which is why I don't believe anything on that site.  Completely open to manipulation. Its hardly Encyclopedia Britannica.  No checks and balances.

Unfortunately many take Wiki for gospel, particularly on this forum. This will I believe, be the downfall of civilisation in the longer term. Ask George and the Ministry Of Information. Nothing like rewriting history on the run.

 

 I recall, as a teenager, some explosives being dropped on Cambodia shaped like a parrot.  Aimed to maim kids. They triggered when picked up in the scrub. It was on the news and in newspapers in Australia in the early1970's. I posted that on here and got strips torn of me, called a liar,  because nobody could find a Wiki reference. I saw the photos and read the story. Wiped from digital history apparently.

Edited September 7, 2019 by emptypockets

[Max69xl]

On 9/7/2019 at 6:30 AM, nausea said:

Thanks for that ukrules. Someone should amend the Wiki entry as it's obviously inaccurate. "Don't Believe Everything You Read on the Internet". Ha!

Stuff you read on Wiki doesn't have to be a fact. Everybody can write or edit anything there. Read proper articles from reliable sources, and you can trust them.

[Naam]

On 9/7/2019 at 6:30 AM, nausea said:

Thanks for that ukrules. Someone should amend the Wiki entry as it's obviously inaccurate. "Don't Believe Everything You Read on the Internet". Ha!

Wiki entry is correct.

 

Quote

Controls were broadly lifted on 3 March 2008 and there is now no significant difference between offshore and onshore exchange rates."

 

[Suradit69]

22 hours ago, sometimewoodworker said:

Not a good choice of a currency, the spread is at only 1.2% and that is hardly miserable, is it?

OK I chose the currency randomly thinking about what it was like years ago.

 

I didn't refer to the spread as miserable, but the value in exchange rate, although the rate you showed is pretty good.

 

But just because a rate is posted doesn't mean if you give it a try at smaller bank branches or other smaller exchanges. that they'll be willing to do the exchange for you.

 

I recall when I left the UAE I still had some dirhams with me and couldn't find any currency exchange at the airport willing to give me baht for them. And on the rate boards some currencies like the Omani rial didn't even show any rates next to the name.

Edited September 8, 2019 by Suradit69

[Suradit69]

22 hours ago, AAArdvark said:

And why is there typically a difference between the "UK" pound and the Scottish pound.? 

The last time I visited Scotland, my Scottish friend made a point of checking whether the cash I still had when I left was the English variety. He said the Scottish notes were often rejected totally overseas because the clerks in currency exchanges couldn't find it (Bank of Scotland or Clydesdale) on their list of acceptable currencies or photo examples.

 

And the currency exchanges would probably run into some resistance if someone wanted to buy pounds and were handed Bank of Scotland notes.  That was quite awhile ago. Maybe these days things aren't that restricted.

[Max69xl]

9 minutes ago, Suradit69 said:

The last time I visited Scotland, my Scottish friend made a point of checking whether the cash I still had when I left was the English variety. He said the Scottish notes were often rejected totally overseas because the clerks in currency exchanges couldn't find it (Bank of Scotland or Clydesdale) on their list of acceptable currencies or photo examples.

 

And the currency exchanges would probably run into some resistance if someone wanted to buy pounds and were handed Bank of Scotland notes.  That was quite awhile ago. Maybe these days things aren't that restricted.

Old posts mentioned Superrich as a possible place to change Scottish pounds. Other than that,you will a big problem to turn them into baht anywhere. If you find a place they might give you a very low exchange rate.

[Suradit69]

5 minutes ago, Max69xl said:

Old posts mentioned Superrich as a possible place to change Scottish pounds. Other than that,you will a big problem to turn them into baht anywhere. If you find a place they might give you a very low exchange rate.

Yes, my experience, or that of my friend, pre-dates Superrich's existence by a decade or two and the rejection of Scottish notes that he experienced was not in Thailand.

[Suradit69]

23 hours ago, sometimewoodworker said:

Not a good choice of a currency,

Agree my choice was probably not great, but as you can see, even Kasikorn doesn't bother showing buying rates for some currencies and the selling rate for Saudi Riyal is far worse than what Superrich claims.

 

 

[sometimewoodworker]

12 minutes ago, Suradit69 said:

Agree my choice was probably not great, but as you can see, even Kasikorn doesn't bother showing buying rates for some currencies and the selling rate for Saudi Riyal is far worse than what Superrich claims.

 

 

Not so surprising as the banks are always worse than SuperRich both green and orange. So knowing where to go is essential if you want to get the best deals. 

 

Unless I wasn't changing much or had a lot less time than money I would never exchange at any bank, specially for less traded currencies.

 

here is an even worse example 

 

though the reverse is not so bad

[nausea]

16 hours ago, Naam said:

Wiki entry is correct.

 

 

Yeah, you're right it seems; at least I understand now (I think) what's going on, thanks to the various posters. 

 

The statement  "there is now no significant difference between offshore and onshore exchange rates"  is misleading to a layman like me though, as the reality is that there is a significant difference between the onshore and offshore rate I can actually get, or am I missing something.

[Naam]

4 hours ago, nausea said:

Yeah, you're right it seems; at least I understand now (I think) what's going on, thanks to the various posters. 

 

The statement  "there is now no significant difference between offshore and onshore exchange rates"  is misleading to a layman like me though, as the reality is that there is a significant difference between the onshore and offshore rate I can actually get, or am I missing something.

only an ignorant will realise a significant difference when he deals with a sh*tty financial institution, e.g. British Post Office, Credit Unions and the like. in that context it's worthwhile to mention that i transfer once in a while THB to Thailand from a Singapore bank at a slightly more favourable rate than transferring "hard" currency. difference nothing to rave about but reality killing the ol' mantra "never transfer Baht to Thailand.

[Jonmarleesco]

On 9/7/2019 at 2:02 PM, natway09 said:

You try buying Baht from a UK Bank in the UK.

Then you will find out who the crooks are

Crooks!? Possibly. But given the Baht is, in relative terms, pretty well worthless outside of LoS/SEA, hardly surprising. But then, why would you buy in the UK, anyway?