Exchange rates around the Kingdom.

[kwilco]

If a particular bank shows. rate of exchange on their web site - will that rate apply to branches simultaneously around the country?

 

If not how do they justify offering a different rate from their advertised rate?

[Puccini]

First question: Yes.

 

Second question: The rate has changed since the "advertisement" you are talking about was published?

 

Edited December 1, 2022 by Puccini

[nigelforbes]

FOREX rates change every second, it's impossible for any bank or currency exchange booth to have realistic and accurate current exchange rates ever, unless they use streaming rates. If the banks web site shows real time rates, they will apply at that second, everywhere because all the branches use the same system. Sign boards showing current rates are come ons, nothing more than advertising and indicative of what the rate was at some point in the past.

 

 

[kwilco]

5 hours ago, Puccini said:

First question: Yes.

 

Second question: The rate has changed since the "advertisement" you are talking about was published?

 

Duh! that's why I'm asking if the rate is the same nationwide - the only way is to note the rate and call a friend in another part of the country.

[kwilco]

5 hours ago, nigelforbes said:

FOREX rates change every second, it's impossible for any bank or currency exchange booth to have realistic and accurate current exchange rates ever, unless they use streaming rates. If the banks web site shows real time rates, they will apply at that second, everywhere because all the branches use the same system. Sign boards showing current rates are come ons, nothing more than advertising and indicative of what the rate was at some point in the past.

 

 

not the question thoughisit?

[kwilco]

it seems a bit too difficult for some to get their heads round........

 

Imagine if II go into a K-bank in Kanchanaburi at midday and another person goes into a K-Bank in Suratthani at midday, on the same day will the rates of exchange advertised be the same?

[Trvlr55]

2 hours ago, kwilco said:

it seems a bit too difficult for some to get their heads round........

 

Imagine if II go into a K-bank in Kanchanaburi at midday and another person goes into a K-Bank in Suratthani at midday, on the same day will the rates of exchange advertised be the same?

Doesn't really matter though, does it?  The two people would have to be standing directly in front of each booth at exactly the same time with their cells and chatting with the other party, as it's changing every second. Then if it's a better rate at the 2nd booth, you'd then have to transport yourself to where-ever that is, and of course "that takes time" and rates at both places will have changed hundreds of times, if not thousands. how many seconds would it take you to get from Kanchanaburi to  Suratthani. It's not 1965 anymore, when rates and such came out on ticker tapes... or is it, hmm. See no reason they'd be different as it would be rather a nightmare for them to track/modify all the different locations second by second differently.

[kwilco]

28 minutes ago, Trvlr55 said:

Doesn't really matter though, does it?  The two people would have to be standing directly in front of each booth at exactly the same time with their cells and chatting with the other party, as it's changing every second. Then if it's a better rate at the 2nd booth, you'd then have to transport yourself to where-ever that is, and of course "that takes time" and rates at both places will have changed hundreds of times, if not thousands. how many seconds would it take you to get from Kanchanaburi to  Suratthani. It's not 1965 anymore, when rates and such came out on ticker tapes... or is it, hmm. See no reason they'd be different as it would be rather a nightmare for them to track/modify all the different locations second by second differently.

Not the question, was it?

[Trvlr55]

4 minutes ago, kwilco said:

Not the question, was it?

Question is totally irrelevant is what I think many have been trying to say. If you that interested have someone on phone at other location at exactly the same time, and compare. can't see how it would make any difference unless you can instantly teleport there.

[nigelforbes]

3 hours ago, kwilco said:

not the question thoughisit?

I can answer your question but I can't understand it for you!

[cdemundo]

1 hour ago, kwilco said:

Not the question, was it?

We are participating in what is usually referred to as a "discussion forum".

When you start a discussion people comment as they see fit.

They do not become your servants with an obligation give you only the narrow answers that you seek.

The fact that no one is directly answering your question might be food for thought for you.

[nigelforbes]

"If not how do they justify offering a different rate from their advertised rate"?

 

You seem to think that banks in Thailand owe the population a duty of care and consistency in their advertising across their branches. In overly developed countries such as the UK that's true but people here are required to think a little bit. If you understood how FOREX and exchange rates work and that rates change every second, you'd realize that by the time an employee had put a rate on the board at one branch, it would be wrong. Pondering whether or not two boards at two different branches miles apart were identically wrong, at the same moment in time, is on par with navel gazing. Musing about the appropriateness of that wrong is a sign of a highly underdeveloped mind. 

[1FinickyOne]

14 hours ago, kwilco said:

the only way is to note the rate and call a friend in another part of the country.

maybe you should leave them your phone number...

[CharlieH]

MOVED  to Finance/Banking

[kwilco]

9 hours ago, nigelforbes said:

"If not how do they justify offering a different rate from their advertised rate"?

 

You seem to think that banks in Thailand owe the population a duty of care and consistency in their advertising across their branches. In overly developed countries such as the UK that's true but people here are required to think a little bit. If you understood how FOREX and exchange rates work and that rates change every second, you'd realize that by the time an employee had put a rate on the board at one branch, it would be wrong. Pondering whether or not two boards at two different branches miles apart were identically wrong, at the same moment in time, is on par with navel gazing. Musing about the appropriateness of that wrong is a sign of a highly underdeveloped mind. 

I don't think you understand the question.

[kwilco]

12 hours ago, cdemundo said:

We are participating in what is usually referred to as a "discussion forum".

When you start a discussion people comment as they see fit.

They do not become your servants with an obligation give you only the narrow answers that you seek.

The fact that no one is directly answering your question might be food for thought for you.

I'm merely pointing out they are not answering the question - if they want to ramble off topic, I guess that is up to them - but they still aren't answering the question - I"m not telling them what to do, I'm pointing out what they've done.

[kwilco]

A conclusion one might make is that "Rates are lower in Phuket than Bangkok" but I can't see how this could be true

[nigelforbes]

Just now, kwilco said:

A conclusion one might make is that "Rates are lower in Phuket than Bangkok" but I can't see how this could be true

You still don't understand how FOREX works, despite being given links, despite it being explained to you! Rates in Phyket are not lower than in Phuket, " If the banks web site shows real time rates, they will apply at that second, everywhere because all the branches use the same system."

 

Even if the banks web sites don't show real time rates, the rates apply the same at all branches because they all use the same FOREX system.

[Puccini]

Theses were the two questions in the OP:

 

Question 1:

Quote

If a particular bank shows. rate of exchange on their web site - will that rate apply to branches simultaneously around the country?

Question 2:

Quote

If not how do they justify offering a different rate from their advertised rate?

 

I made a mistake by giving an answer to the second question in my earlier post in this topic. Since the answer to the first question is "Yes", the second question does not arise.

[sometimewoodworker]

My experience of exchange rates is that there are different rates in a few areas, this is due to a number of factors.

One is that when you exchange money a couple of things happen to it, one is that the notes are transferred by secure transport to another location, this incurs cost,  another general thing is that at some later time someone else will make an opposite exchange, so you have to secure the bank notes in your safe.

 

So take an example of a bank in Nakhon Nowhere, they will not hold the cash because the chance of a reverse exchange request is minimal the probably exchange cash once a week if that.

Conversely take a bank in  KaoSarn road, they are doing multiple exchanges per hour and are likely to also to do reverse exchanges. This means that the transport cost is very much lower there. 
 

The other factor is competition, there are a few places where this is a factor KaoSarn road is one that I am sure of. Some banks and exchange services in KaoSarn road have better rates than others in less high transaction areas.

 

For the exchange companies there are different rates in different locations and those are published.

My experience is that “green” SuperRich HQ in Rajdamri 1 (https://www.superrichthailand.com) is always either the best rate or equal to the other 2 or 3 competitors, even though SuperRich1965 has more branches and affiliates 

[nigelforbes]

5 minutes ago, sometimewoodworker said:

My experience of exchange rates is that there are different rates in a few areas, this is due to a number of factors.

One is that when you exchange money a couple of things happen to it, one is that the notes are transferred by secure transport to another location, this incurs cost,  another general thing is that at some later time someone else will make an opposite exchange, so you have to secure the bank notes in your safe.

 

So take an example of a bank in Nakhon Nowhere, they will not hold the cash because the chance of a reverse exchange request is minimal the probably exchange cash once a week if that.

Conversely take a bank in  KaoSarn road, they are doing multiple exchanges per hour and are likely to also to do reverse exchanges. This means that the transport cost is very much lower there. 
 

The other factor is competition, there are a few places where this is a factor KaoSarn road is one that I am sure of. Some banks and exchange services in KaoSarn road have better rates than others in less high transaction areas.

 

For the exchange companies there are different rates in different locations and those are published.

My experience is that “green” SuperRich HQ in Rajdamri 1 (https://www.superrichthailand.com) is always either the best rate or equal to the other 2 or 3 competitors, even though SuperRich1965 has more branches and affiliates 

That's a good theory but it's not really part of the FOREX picture. The problem is, banks have deliveries and collections of notes and paper work on a daily basis so any foreign currency acquired by a branch becomes part of the scheduled collection, ergo, there is no additional cost to those branches. 

 

The idea that rates are better in high traffic areas is also not sound, if anything, rates are higher, eg the airports. The SPOT rate is the spot rate, that is determined by the FOREX system and that is a number that is outside the control of banks and currency exchange agents. The add on or spread is the markup that the bank or agent charges as profit and that is variable, although it is highly unlikely to be too variable since the cost to perform the transaction in Nakon Nowhere is the same as in Bangkok. Banks/exchange agents have to remain competitive within their sphere of business or territory, you rarely see banks and exchange booths located close to each other for various reasons, both are in different markets and have different cost sensitivities. Banks compete with banks and exchange companies compete with exchange companies, the two don't compete with each other.

[sometimewoodworker]

1 hour ago, nigelforbes said:

That's a good theory but it's not really part of the FOREX picture. The problem is, banks have deliveries and collections of notes and paper work on a daily basis so any foreign currency acquired by a branch becomes part of the scheduled collection, ergo, there is no additional cost to those branches. 

 

The idea that rates are better in high traffic areas is also not sound, if anything, rates are higher, eg the airports. The SPOT rate is the spot rate, that is determined by the FOREX system and that is a number that is outside the control of banks and currency exchange agents. The add on or spread is the markup that the bank or agent charges as profit and that is variable, although it is highly unlikely to be too variable since the cost to perform the transaction in Nakon Nowhere is the same as in Bangkok. Banks/exchange agents have to remain competitive within their sphere of business or territory, you rarely see banks and exchange booths located close to each other for various reasons, both are in different markets and have different cost sensitivities. Banks compete with banks and exchange companies compete with exchange companies, the two don't compete with each other.

The costs involved in forex are speculation, I agree.

 

However your theory on the better rates available are wrong. I have personally experienced and observed over many years that there are better rates given by certain bank branches/bank operated exchange booths in KaoSarn road. The rates given by both bank operated booths and exchange companies are usually within a couple of stang or identical. The rates on the same day (there was no exchange rate movement during the day) in the same bank were worse in other areas. 
 

the juxtaposition of companies and banks is an established fact in some places and the fact of virtual synchronous rates is also true, I’ve spent considerable time over the years and have empirical proof.

 

your theory that banks and exchange companies have different markets is in areas where they are close is also false.
 

I have not included airports for several reasons, the prime one is that I’ve not spent significant time in them, an equally good one is that rents for space in airports are very high so most businesses charge higher prices.

Edited December 6, 2022 by sometimewoodworker

[nigelforbes]

2 hours ago, sometimewoodworker said:

The costs involved in forex are speculation, I agree.

 

However your theory on the better rates available are wrong. I have personally experienced and observed over many years that there are better rates given by certain bank branches/bank operated exchange booths in KaoSarn road. The rates given by both bank operated booths and exchange companies are usually within a couple of stang or identical. The rates on the same day (there was no exchange rate movement during the day) in the same bank were worse in other areas. 
 

the juxtaposition of companies and banks is an established fact in some places and the fact of virtual synchronous rates is also true, I’ve spent considerable time over the years and have empirical proof.

 

your theory that banks and exchange companies have different markets is in areas where they are close is also false.
 

I have not included airports for several reasons, the prime one is that I’ve not spent significant time in them, an equally good one is that rents for space in airports are very high so most businesses charge higher prices.

I suspected you may say some of those things which I will not debate with you. Suffice to say it is a statistical impossibility that forex rates on any given currency do not move during the course of a trading day and that the rates don't change. The opening post in the following link may help you understand FOREX better. The realty is that rates displayed on boards bear no relationship to rates that are offered to the public at the point of sale. It is physically impossible for banks or booths to display accurate or even near accurate rates on boards or anywhere else, until such time as a transaction is initiated.

 

 

Edited December 6, 2022 by nigelforbes

[sometimewoodworker]

1 hour ago, nigelforbes said:

Suffice to say it is a statistical impossibility that forex rates on any given currency do not move during the course of a trading day and that the rates don't change.

You clearly haven’t had much experience with exchange rates posted by the banks and exchange companies. You may have a theoretical knowledge I however have a practical one going back over 40 years of exchanging foreign currency in Thailand. 
 

During many periods there was no change in the exchange rates in retail banks and exchange companies from open of business through the normal (approximate 10am fix) to the close of business. During other times there were multiple changes.

 

you may not understand that for approximately 15 years ending in July 1997 the Thai Baht was pegged to the US dollar with virtually zero movement other than an occasional couple of stang.

 

So you are drawing faulty conclusions from inadequate inaccurate data.

 

 

[nigelforbes]

17 minutes ago, sometimewoodworker said:

You clearly haven’t had much experience with exchange rates posted by the banks and exchange companies. You may have a theoretical knowledge I however have a practical one going back over 40 years of exchanging foreign currency in Thailand. 
 

During many periods there was no change in the exchange rates in retail banks and exchange companies from open of business through the normal (approximate 10am fix) to the close of business. During other times there were multiple changes.

 

you may not understand that for approximately 15 years ending in July 1997 the Thai Baht was pegged to the US dollar with virtually zero movement other than an occasional couple of stang.

 

So you are drawing faulty conclusions from inadequate inaccurate data.

 

 

Goodbye SWW

[sometimewoodworker]

1 hour ago, nigelforbes said:

Goodbye SWW

You definitely are typical of your chosen first screen name, being unable to accept that your point of view is rather restricted and is not accurate in all circumstances.

[nigelforbes]

27 minutes ago, sometimewoodworker said:

You definitely are typical of your chosen first screen name, being unable to accept that your point of view is rather restricted and is not accurate in all circumstances.

I imagined SWW that I was debating with adults who would automatically be able to exclude pegged currencies from the debate, since this is a discussion about today, not about what happened over 25 years ago! That's why we're parting company.

[Lemsta69]

6 hours ago, sometimewoodworker said:

KaoSarn road

That's a new one! ???? BTW the kids these days are calling it "the Koh San road" where San is pronounced like Sand without the D. 

[sometimewoodworker]

5 hours ago, nigelforbes said:

I imagined SWW that I was debating with adults who would automatically be able to exclude pegged currencies from the debate, since this is a discussion about today, not about what happened over 25 years ago! That's why we're parting company.

You maybe excluding currencies and time periods because of arbitrary criteria and be unable to see that what happened in the past can happen again. You also probably excluded them because it shows that you are talking out of an orifice not designed for communication.

However you are thus giving a false view of reality and real life.

there are none so blind as those who will not see. Those who will not learn from history are doomed to repeat the mistakes of the past.

 

[brianthainess]

On 12/1/2022 at 10:24 PM, kwilco said:

it seems a bit too difficult for some to get their heads round........

 

Imagine if II go into a K-bank in Kanchanaburi at midday and another person goes into a K-Bank in Suratthani at midday, on the same day will the rates of exchange advertised be the same?

Yes.