Thai Baht Exchange Rate So Low How Are You Dealing With It?

[chiang mai]

6 minutes ago, Patong2021 said:

 

You have made a significant point, although the Thai board of Investment - BOI does  provide a split.

Mind blowing. because of the overwhelming dominance of Chinese investment. I didn't appreciate how powerful and influential the Chinese were until you mentioned this. To be honest, I now get it why China holds so much influence over Thailand. I would even go so far to say that Thailand is becoming a puppet state.

 

As of 2024 Approved Foreign Investment Projects in Thailand (Source Thailand BOI) -

Top 4 International Investment Projects

-Mainland China has 164 projects worth 69.283 billion baht and Hong Kong has 30 projects worth 24.287 billion baht for a combined Chinese total of 194 projects 93.607 billion baht

-Singapore has 63 projects worth 53.683 billion

-Australia has 5 projects worth 14.840 billion baht

-Japan has 87 projects worth 12.885 billion baht

 

 

The Chinese capital inflow article is 5 years old.

[Hawaiian]

22 hours ago, ericbj said:

All currencies these days are fiat currencies.  They are backed by nothing durable.  They are backed by public confidence, and that relies upon the supply of a currency being related to the availability of goods and services.  "Money-printing", e.g. through ever-expanding unproductive debt, obviously increases the money supply resulting in its devaluation (commonly referred to as "inflation").

 

Financialisation of government debt - central bank loans to government to cover ever deepening budget deficits - is likely to get worse in the foreseeable future.  So be prepared!

 

In the days when paper money was promissory notes to supply gold, its purchasing power fluctuated only slightly over centuries.

 

Gold is difficult to wrest from the ground, and cannot be conjured up out of thin air.  It is a hard asset.  Not a credit note.

 

The down-side of gold is that it does not produce interest or dividends, but on the contrary there is a cost of storage and insurance (except to the extent that one may hold a small amount in a secure place at home)

 

Putting some cash into the shares of a gold royalty/streaming or established mining company (NOT an exploration company - highly speculative) can be a way of deriving some income from gold investment.  With leverage - up or down - in capital value, depending upon whether the gold price is rising or falling.

 

When purchasing bullion that is to be stored and insured, it is important to make sure that the dealer transfers it to a reputable, specialised bullion storage company and that you personally are listed as the owner.

 

Some Thais lost their stored gold during the crisis of 1997.  Their dealers retained the gold in their own name [it was not "allocated"], perhaps holding it as security against borrowing, and when they went bankrupt their creditors took the gold.

 

Gold that is held in secure vaults is very quickly and easily sold in on-line dealing, using the same dealers through which it was purchased.

 

If interested, it may be worth perusing these sites :

 

https://www.bullionvault.com/

 

https://swpcayman.com/

 

https://www.goldcore.com/

 

Gold may not generate interest, but has the potential to appreciate in value.  In the past 7 years gold has more than doubled in value. 

[Speedhump]

7 hours ago, itsari said:

The protocol used of 65,000 baht a month could be difficult for many to follow if the baht continues to strengthen. 

Ship out then? 

No , you will use the 800,000 baht in a Thai bank account or you use an agent .

People who can't afford to bring in 65k a month will have 800k in country? They're fools if they do. I would never have more cash in Thailand than I need to live on. An agent is the only answer for them.

[brianthainess]

On 9/21/2024 at 1:41 PM, shackleton said:

Not a problem I am content with 44-45 baht to the British pound 🤑

TT rate today for Krungsri is 43.41866 

[itsari]

12 minutes ago, Speedhump said:

People who can't afford to bring in 65k a month will have 800k in country? They're fools if they do. I would never have more cash in Thailand than I need to live on. An agent is the only answer for them.

A combination method of the two methods could be used .

Some immigration offices will not accept that method of applying for a 12 month extension.

If you had 800,000 baht in the country and transferred the funds to a dollar account you would win with the strengthening baht. 

[Bill97]

20 hours ago, ModdaPunk said:

Vietnam (3 months rather than 90 days)

What is that, 2 days difference?

[Skeptic7]

Don't like it, but doesn't impact my lifestyle in the least. 🤑

 

Sure it's considerably lower, down 10% over the past 3 months...but it's been 10% lower than this over the past 20 years. 

[newnative]

     As long as it stays 30 or above I am happy.  At this point I am not sending any money to Thailand and spouse and I are living off money we already have in Thailand, which should last for sometime.  

[ModdaPunk]

2 hours ago, Bill97 said:

What is that, 2 days difference?

 

Sorry.

You're absolutely right.

I meant 45 days.

My bad :D

[Mitkof Island]

9 hours ago, itsari said:

Are you offered a better exchange rate when fluent in Thai?

No but you would save a lot of money. And understand what is being said about you.

[Denim]

Cut down on the MIL's food . I think I'll actually be in pocket so no worries

[sidjameson]

On 9/21/2024 at 8:05 AM, Celsius said:

Simple. Earn income in Thai baht. 

 

This is why I chose an educated woman and not a bargirl. Extra 100,000b a month is a nice addition with no exchange rate worries.

Everybody gets the best partner they can. 

If a Thai women earning 100k and willing to support a guy chose you she is either bad looking or you're very handsome and full of game.

 

[flexomike]

5 hours ago, Furioso said:

I'm NOT going to lie this weak dollar vs. the baht really s_cks donkey conk. I'm eliminating any major purchases for the time being. I was going to buy that new iPhone 16 but no way that's happening. and that new Honda CRV? forget it. 

 

My friend says the baht is always strong during low season, maybe it's a way to squeak by idk. 

usually the baht gets stronger in the High season

[KannikaP]

20 hours ago, Speedhump said:

I don't know why your comment attracted three 'confused' comments. It's completely correct.

Someone with 800k in the bank STILL needs to import money for living off, or is it living on? Some people cannot afford to have 800k sitting in a bank earning nothing. So if one can absorbs the rate changes temporarily, you are better off. 

The difference between 65k  @ 44 or 46 is only 56 quid. nothing to really fret about.

[Pattaya57]

Since the Baht is so strong then imports must cost less. This means price of wine in Thailand should drop so my plan is to buy as much wine as possible.

 

Then if the baht never drops at least I have lots of wine to drown my sorrows 😉

 

 

[david555]

9 minutes ago, KannikaP said:

Someone with 800k in the bank STILL needs to import money for living off, or is it living on? Some people cannot afford to have 800k sitting in a bank earning nothing. So if one can absorbs the rate changes temporarily, you are better off. 

The difference between 65k  @ 44 or 46 is only 56 quid. nothing to really fret about.

you could live for 7 month's on half (400 000) of that money ,.... on condition to fill up by the dates for renewing your extension , meaning that you need to transfer or deposit the missing 400000 Thb in time .

I guess (hope for them ...) that a person living in Thailand as a expat has at least some money by month coming in on his account in home country

[chiang mai]

On 9/21/2024 at 2:43 PM, Isaan sailor said:

All kidding aside,  why does the Baht have an inverse value to the USD and other western currencies?  Why can’t the Baht go down when western currencies go down?  I hardly think the Baht can be considered “risk on” and such a compelling value for traders.

 

Two point:

 

The Baht cannot be traded FOR DELIVERY, outside of Thailand because it remains a restricted currency that is not freely convertible.  Any trading that is done offshore has no impact on THB value.

 

THB has an inverse relationship to USD because USD is the main reserve currency that sits at the top of the FOREX tree. When USD weakens, every thing else in that tree, THAT HAS A DIRECT RELATIONSHIP WITH USD, strengthens.

[Gottfrid]

Not dealing with it! Just letting it be. Nothing I can do about it, more than take another beer.

[NoDisplayName]

On 9/21/2024 at 4:31 AM, Mitkof Island said:

In my case had planned to

 

In my case, no problem with the exchange rate.

 

Thanks to uncertainty in the tax situation, all major purchase have been put off, and we'll be spending down Thai accounts - some remaining stocks, a couple savings accounts, and some bond mutual funds.  The Hilux will last another decade.

 

Probably have enough in those accounts for several years without transferring more.  I'll just invest all my outside cash.........outside Thailand.

 

Winning!

[Isaan sailor]

21 minutes ago, chiang mai said:

 

Two point:

 

The Baht cannot be traded FOR DELIVERY, outside of Thailand because it remains a restricted currency that is not freely convertible.  Any trading that is done offshore has no impact on THB value.

 

THB has an inverse relationship to USD because USD is the main reserve currency that sits at the top of the FOREX tree. When USD weakens, every thing else in that tree, THAT HAS A DIRECT RELATIONSHIP WITH USD, strengthens.

Good answer, and straight forward too. Thank you.    Still not sure why USD tanked with Baht on Friday, yet rose on the Dong. as well as on the DXY Tradingview.

[itsari]

1 hour ago, Mitkof Island said:

No but you would save a lot of money. And understand what is being said about you.

How would I save a lot of money ?

I really don't care what is said about me .

 

[Celsius]

2 hours ago, sidjameson said:

Everybody gets the best partner they can. 

If a Thai women earning 100k and willing to support a guy chose you she is either bad looking or you're very handsome and full of game.

 

 

I am neither handsome, game or Chad nor is my wife ugly.

 

However, once I went to Pattaya hunsum man Facebook group and was truly amazed what ATM machines consider to be a good looking woman.

 

I often do wonder why people simply don't ask for refunds. Then I remember it is a long term contract lease, usually sealed by "I'm stuck paying for a house I don't own" contract hence such contract is usually fulfilled once the house is built and wifey decides to live with the bro.

 

And no wonder then why everyone is crying about exchange rates. It must hurt a lot.

 

 

 

 

[chiang mai]

1 hour ago, Isaan sailor said:

Good answer, and straight forward too. Thank you.    Still not sure why USD tanked with Baht on Friday, yet rose on the Dong. as well as on the DXY Tradingview.

 

I think the answer has to do with IMF rules and the way the respective currencies are managed.

 

The BOT operates a managed floating exchange rate, aka the Dirty Float, whereas Vietnam operates a crawling peg. That means that the THB/USD exchange rate was allowed to strengthen because there was no intervention by the BOT, whereas the VND/USD rate was only allowed to move within a very tight range. 

 

https://www.investopedia.com/terms/c/crawlingpeg.asp

 

https://www.investopedia.com/terms/d/dirtyfloat.asp

[jerrymahoney]

9 hours ago, Celsius said:

 

And no wonder then why everyone is crying about exchange rates. It must hurt a lot.

So if the baht to USD has gone from roughly 37 to 33, to get the 65K each month will require an extra roughly US$200.
 

[KannikaP]

14 hours ago, david555 said:

you could live for 7 month's on half (400 000) of that money ,.... on condition to fill up by the dates for renewing your extension , meaning that you need to transfer or deposit the missing 400000 Thb in time .

I guess (hope for them ...) that a person living in Thailand as a expat has at least some money by month coming in on his account in home country

400k for 7 months = 37k per month, then you need to put back 400k over 5 months = 80k per month. I would rather do my way, Combo, of 400k in the bank and 35k per month. No thought needed.

OK, the 400k (GBP10,000)  you are going to pay back could be in a bank account @ 5%?, which is 0.41% for each of the 5 months = GBP 208.33 which you could not get.

[DrPhibes]

Heading to BKK Bank today to ask them about opening a USD account where we can online move money from Baht to USD then back again to baht when the baht weakens .  Had a chunk over here already due to visa extension (got stamped Fri) and the wife just sold some land so have a few bucks to play with.

[david555]

20 minutes ago, KannikaP said:

400k for 7 months = 37k per month, then you need to put back 400k over 5 months = 80k per month. I would rather do my way, Combo, of 400k in the bank and 35k per month. No thought needed.

OK, the 400k (GBP10,000)  you are going to pay back could be in a bank account @ 5%?, which is 0.41% for each of the 5 months = GBP 208.33 which you could not get.

On condition you are under a I.O. office that accept the combo method.

 

I just gave it as a extra possibility solution for those on narrow limit , or does not like to keep full 800K on a Thai bank as if not really needing it can be anyway under yor own control 

I myself kept the complete 800K in full on bank all time as i considered  it as a eventuality reserve fund ...

[john donson]

any time I want to sent money home, the EURO is strangely higher then the last couple of years, when I expect money to come it, lowest as low goes...

 

I have most of my money here, against all common sense... problem solved, no 20-35% tax worries...

[Celsius]

3 hours ago, john donson said:

 

 

I have most of my money here, against all common sense... problem solved, no 20-35% tax worries...

 

That's what you think.

[KhunLA]

On 9/21/2024 at 4:31 AM, Mitkof Island said:

With the Thai baht the lowest exchange rate in over a year. I am curious how other expats are dealing with their monthly budgets. In my case had planned to buy a motorbike. Anything below 30 baht to the USD dollar everything outside survival comes to a stop. 33 to 34 baht to the dollar I can deal with that.

A whole 10 ish % and you'd be in panic mode ... 

 

Suggest you get used to the idea of 33, as 30-35 has been the norm for almost the past 20 years.