Exchange Usd To Baht In Country Or Not?

[johnnymoretti]

Aside from any political remarks (which I hope I don't have to read) I am trying to figure out the best way to maximize my US dollars.

I return to Thailand in early September with my Thai wife, and I wonder if its better to carry USD into Thailand and exchange them in country, or:

1. Use an ATM to take money out of my US bank (USAA Federal Savings Bank)

2. Take large denominations (50 and 100 dollar bills) to exchange kiosks

3. Exchange them here in the US into Thai Baht before I depart

What would you do???

Also, do you see the baht depreciating in the near foreseeable future??

Johnny

[joeuk1]

Aside from any political remarks (which I hope I don't have to read) I am trying to figure out the best way to maximize my US dollars.

I return to Thailand in early September with my Thai wife, and I wonder if its better to carry USD into Thailand and exchange them in country, or:

1. Use an ATM to take money out of my US bank (USAA Federal Savings Bank)

2. Take large denominations (50 and 100 dollar bills) to exchange kiosks

3. Exchange them here in the US into Thai Baht before I depart

What would you do???

Also, do you see the baht depreciating in the near foreseeable future??

Johnny

I would open Thai bank account if i did not have one already and transfer dollars to my Thai bank account when i needed it .

JB

[calibanjr.]

Aside from any political remarks (which I hope I don't have to read) I am trying to figure out the best way to maximize my US dollars.

I return to Thailand in early September with my Thai wife, and I wonder if its better to carry USD into Thailand and exchange them in country, or:

1. Use an ATM to take money out of my US bank (USAA Federal Savings Bank)

2. Take large denominations (50 and 100 dollar bills) to exchange kiosks

3. Exchange them here in the US into Thai Baht before I depart

What would you do???

Also, do you see the baht depreciating in the near foreseeable future??

Johnny

I would open Thai bank account if i did not have one already and transfer dollars to my Thai bank account when i needed it .

JB

Agree with Joeuk, been here 4+ years now, I always get the onshore bid or better from Bangkok Bank and one biz day transfer time from the states (same day xfer from Hong Kong). Only caveat is if your home bank has some ridiculous service fee for transfers, otherwise, it's the way to go. If you need landing cash, obviously bring some Franklins (or T/C's for security and rate) for the best rate.

Many posts about the ins and outs of xfers around on TV, too.

Edited July 31, 2007 by calibanjr.

[johnnymoretti]

Thanks for the info.

I do have already a Bangkok Bank account. I'll check out the other posts, too. Thanks!

[JimGant]

USAA Federal Savings Bank is topnotch. I have both a checking and savings account, but use the savings account for ATM withdrawals here in Thailand. There is no 'per event' charge and you'll get the Interbank Exchange Rate, which is the best you can do (less a 1% foreign transaction fee for using the Cirrus network). You'll get all this with their checking acount too, of course, but like most checking accounts, it doesn't pay interest of any note.

Talk to USAA about what your daily needs may be, as their cap may be too low for you (I easily raised my daily limit). And, have a notation made that you'll be using your plastic in Thailand (so they don't mistakingly sense fraud).

If larger amounts are needed, wiring money from USAA is easy. It costs $35, so you'll need to wire an amount over $5000 to come out ahead, which will also amortize Bangkok Bank's 500 baht fee. You'll get the"Telex" rate, which is a few satang less than the Interbank rate --- but actually superior when you factor in the Cirrus foreign exchange fee, which is not charged for wires.

If you plan to wire -- or even as a contingency -- talk to USAA and set up a template for their files. With this, you then call a local Thai number, giving you toll free to San Antonio, where you have them bring up the template with all the particulars on it, then just give them the amount you want sent. Do this 9:00 pm Thailand time, it will be here next afternoon (my experience). If you don't set up a template, you can also walk them through a wire transfer verbally -- or send a fax. But, the template approach is very efficient.

The USAA website has a FAQ page about wire transfers.

No, don't buy baht in the States (you'll get the ludicrous offshore rate). And, in fact, on that template I mentioned above, make sure you indicate "Send dollars, not baht."

[johnnymoretti]

Jim Gant,

Wow, your response is greatly appreciated!! I have been with USAA since 1982 (my father was a retired Colonel in the AF and I'm a veteran, too) so it makes the banking issue a breeze internationally. Most don't know that USAA is bigger than BofA, and have been around over 100 years.

I will most certainly contact USAA about the frequent bank transfers and 'template' which you mentioned. All your info was wonderful and is quite helpful!

FYI: I only have a checking with USAA and link my ING Direct Savings to my USAA to make interbank transfers...free of charge. Right now, ING Direct has a GREAT savings account rate (even their 12/month CD is 5.30APY) and there are never any fees...whatsoever.

Thanks again, Jim.

Johnny

Edited August 2, 2007 by johnnymoretti

[cm-happy]

why worry about bad dollar/baht exchange rate?

Since you're in the States, go to a large commercial bank & buy pounds, with your US dollars, and bring the pounds back to Thailand where you'll, receive a much more favorable rate than dollars.

simple solution

[Beachbunny]

USAA Federal Savings Bank is topnotch. I have both a checking and savings account, but use the savings account for ATM withdrawals here in Thailand. There is no 'per event' charge and you'll get the Interbank Exchange Rate, which is the best you can do (less a 1% foreign transaction fee for using the Cirrus network). You'll get all this with their checking acount too, of course, but like most checking accounts, it doesn't pay interest of any note.

Talk to USAA about what your daily needs may be, as their cap may be too low for you (I easily raised my daily limit). And, have a notation made that you'll be using your plastic in Thailand (so they don't mistakingly sense fraud).

If larger amounts are needed, wiring money from USAA is easy. It costs $35, so you'll need to wire an amount over $5000 to come out ahead, which will also amortize Bangkok Bank's 500 baht fee. You'll get the"Telex" rate, which is a few satang less than the Interbank rate --- but actually superior when you factor in the Cirrus foreign exchange fee, which is not charged for wires.

If you plan to wire -- or even as a contingency -- talk to USAA and set up a template for their files. With this, you then call a local Thai number, giving you toll free to San Antonio, where you have them bring up the template with all the particulars on it, then just give them the amount you want sent. Do this 9:00 pm Thailand time, it will be here next afternoon (my experience). If you don't set up a template, you can also walk them through a wire transfer verbally -- or send a fax. But, the template approach is very efficient.

The USAA website has a FAQ page about wire transfers.

No, don't buy baht in the States (you'll get the ludicrous offshore rate). And, in fact, on that template I mentioned above, make sure you indicate "Send dollars, not baht."

$35 dollars for a wire transfer is outrageous. I've never paid over $18 for a wire transfer, and I wire a lot more than 5,000 dollars. I don't pay my bank here any fee either. .....but then that's why we got rid of our BB account years ago.......bad service and too many fees.

beachbunny

[JimGant]

$35 dollars for a wire transfer is outrageous. I've never paid over $18 for a wire transfer

It is outrageous; but seems nice when compared to the $50 my Suntrust bank wants.

Worldwide interbank exchanges via the Internet should be the norm, not the exception. The US seems to be behind in this regard based on what my European friends tell me. Wire transfers are just plain inefficient.

[JimGant]

why worry about bad dollar/baht exchange rate?

Since you're in the States, go to a large commercial bank & buy pounds, with your US dollars, and bring the pounds back to Thailand where you'll, receive a much more favorable rate than dollars.

simple solution

Too simple, I'm afraid.

[cm-happy]

why worry about bad dollar/baht exchange rate?

Since you're in the States, go to a large commercial bank & buy pounds, with your US dollars, and bring the pounds back to Thailand where you'll, receive a much more favorable rate than dollars.

simple solution

Too simple, I'm afraid.

Why too simple? Is there something illegal with my suggestion?

although i've never done this in the past, my next rip back to the States later this year I plan on bringing in a few thousand pounds. 60 to 1 is a heck of a lot better than 30 to 1.

[JimGant]

Why too simple? Is there something illegal with my suggestion?

Not illegal, it's just that the arbitrageurs have gotten there first. Plus, their profits, if any, were courtesty of huge amounts involved, instantaneous trading, coupled to fantastically small spreads.

Sure, 1 GBP buys more baht today than 1 USD. But, it also costs more USDs to get 1 GBP today, so with 1 USD you'll still end up where you began in terms of baht (and probably with less after you figure in the buy/sell commissions). You might luck out with your bag of GBPs enroute to Thailand if the USD further depreciates against the pound. But this is pure currency speculation, and it's not for the weak at heart, or for those who can't afford it.