Converting large sums of baht without being robbed

[jrmaanda]

Until a few years ago, if one wanted to convert a large sum of money between currencies, say over the equivalent of about one million baht, most banks worldwide would do so at a reasonable rate (typically about 0.3% between buying and selling rates) instead of the grossly rapacious tourist rate (at least 2% between buying and selling rates). Now the only bank I happen to know of anywhere that will exchange at the old honest rate is Revolut.

 

I need to transfer 20 million baht from a Thai stockbroker to any bank in Europe. Before, the broker's bank would have done this at an at least bearable rate, but no more. It would cost at least 200,000 baht. So I set up a multi-currency account with Revolut in France, Euros, £ and baht. I sent £ to it from Britain with no problem. Now I've asked my Thai broker to send baht to it and they claim they cannot because its SWIFT code is denominated in Euros (in which case, how could the British bank manage it?).

 

If anyone has experience of this or can offer a solution, I'd be extremely grateful to hear from them.

[Mike Lister]

21 minutes ago, jrmaanda said:

Until a few years ago, if one wanted to convert a large sum of money between currencies, say over the equivalent of about one million baht, most banks worldwide would do so at a reasonable rate (typically about 0.3% between buying and selling rates) instead of the grossly rapacious tourist rate (at least 2% between buying and selling rates). Now the only bank I happen to know of anywhere that will exchange at the old honest rate is Revolut.

 

I need to transfer 20 million baht from a Thai stockbroker to any bank in Europe. Before, the broker's bank would have done this at an at least bearable rate, but no more. It would cost at least 200,000 baht. So I set up a multi-currency account with Revolut in France, Euros, £ and baht. I sent £ to it from Britain with no problem. Now I've asked my Thai broker to send baht to it and they claim they cannot because its SWIFT code is denominated in Euros (in which case, how could the British bank manage it?).

 

If anyone has experience of this or can offer a solution, I'd be extremely grateful to hear from them.

A SWIFT code doesn't denote currency of the bank, you are being fobbed off. The short SWIFT code denotes the bank, the longer one denotes the bank and branch. It might be that if you have a EURO account at the bank where your multi currency account is also held, you are trying to use the longer number for the EURO based account?

 

There is a second issue which I believe is probably the real reason, THB is a restricted currency and cannot be remitted overseas in large amounts, except to neighbouring countries and even then there are low restrictions. Any transfer of THB overseas will need to be converted into the destination currency beforehand, by the sending bank, regardless of the type of account held.

[george]

A SWIFT can be sent in any currency if the receiving account can take that currency directly or indirectly.

[jrmaanda]

Thanks Mike,

That's what I suspected. They are trying to force me to pay for their exchange service.  Their exact wording is "

SWIFT CODE : REVOFRP2 can only transfer from  Thai Baht into foreign currency and the offshore bank does not Thai Baht account with Bangkok Bank."

But if they say "no", what on earth can I do?

[Everyman]

I guess you need a new broker. 

[Mike Lister]

6 minutes ago, Everyman said:

I guess you need a new broker. 

This is not about the broker, these are BOT Foreign Exchange Rules.

[Mike Lister]

8 minutes ago, jrmaanda said:

Thanks Mike,

That's what I suspected. They are trying to force me to pay for their exchange service.  Their exact wording is "

SWIFT CODE : REVOFRP2 can only transfer from  Thai Baht into foreign currency and the offshore bank does not Thai Baht account with Bangkok Bank."

But if they say "no", what on earth can I do?

 

You have no choice, you have to sell that THB before you can transfer it overseas, those are the Central Bank rules.

[Mike Lister]

You can try talking with the sending bank Treasury Dept, they will often negotiate the rate on larger amounts.

[jrmaanda]

Thank you Mike. I'm trying out your idea.

[ukrules]

Apparently it's not technically legal to buy Bitcoin and use it for a foreign currency transaction so I guess you can't do that either

[lkn]

On 4/10/2024 at 5:55 AM, jrmaanda said:

It would cost at least 200,000 baht

You might get a better rate for higher amounts.

 

I did about 12 million with Bangkok Bank and got a rate 0.75% worse than the ECB rate for the same day, which is the mid-market rate, so no bank (even Revolut) would actually give me the ECB rate.

 

But as others have pointed out, you are in the mercy of Thai financial institutions, because THB cannot be sent abroad, so your best option is to check which Thai bank will give you the best rate.

[ianguygil]

Please see this thread. I helped RrtiredThailand. If you need to move a large amount - in the millions of Baht - we can give you a special rate. And as I said I have helped many people on this forum over the years. So PM me if you need to move a large amount. A few hundred thousand Baht will not qualify. This is like buying Wholesale and not Retail.

 

 

[Mike Lister]

I second Ian's post above, Ian is well known in the banking forum over the years and his offer is authentic and genuine.