markm81 Posted August 18, 2007 Share Posted August 18, 2007 Has anyone noticed, there is no longer a difference between onshore and offshore rate in thailand? This has been so over the last 48 hours. Can someone please explain what is happening? I am guessing it has to do with the Global correction. The thai baht has fallen in value dramtically. I am converting Aussie dollars to THB. The offshore rate is now more favourable, whereas a week ago, the onshore rate was about 10% better!! Link to comment Share on other sites More sharing options...
bendix Posted August 18, 2007 Share Posted August 18, 2007 Has anyone noticed, there is no longer a difference between onshore and offshore rate in thailand? This has been so over the last 48 hours. Can someone please explain what is happening?I am guessing it has to do with the Global correction. The thai baht has fallen in value dramtically. I am converting Aussie dollars to THB. The offshore rate is now more favourable, whereas a week ago, the onshore rate was about 10% better!! If there is no longer difference, how can you say the offshore rate in Australia now represents a better deal? Slightly contradictory? Link to comment Share on other sites More sharing options...
Mid Posted August 18, 2007 Share Posted August 18, 2007 relative ain't it , current spread looks to be about two satang ............................................... thats lots of freight in your rarefied air sir not so much for us at the coal face ..................................... Link to comment Share on other sites More sharing options...
Naam Posted August 18, 2007 Share Posted August 18, 2007 Has anyone noticed, there is no longer a difference between onshore and offshore rate in thailand? This has been so over the last 48 hours. Can someone please explain what is happening?I am guessing it has to do with the Global correction. The thai baht has fallen in value dramtically. I am converting Aussie dollars to THB. The offshore rate is now more favourable, whereas a week ago, the onshore rate was about 10% better!! If there is no longer difference, how can you say the offshore rate in Australia now represents a better deal? Slightly contradictory? a difference of ~3.5% still exists. Link to comment Share on other sites More sharing options...
Mid Posted August 18, 2007 Share Posted August 18, 2007 a difference of ~3.5% still exists. not according to XE v's KT bank , your source ?? Link to comment Share on other sites More sharing options...
Maestro Posted August 18, 2007 Share Posted August 18, 2007 not according to XE v's KT... The rates on xe.com are “live middle-market rates”. Your Australian bank, on the other hand, uses two rates: one for buying Baht and one for selling Baht. Do have a link to the exchange rates of your Australian bank? -- Maestro Link to comment Share on other sites More sharing options...
Mid Posted August 18, 2007 Share Posted August 18, 2007 http://www.westpac.com.au/forms/forex.nsf/...amp;StartPage=2 a thousand pardons ............................... thanxs Link to comment Share on other sites More sharing options...
Maestro Posted August 18, 2007 Share Posted August 18, 2007 Out of curiosity, I looked up the selling rate of ANZ bank: 23.977. AUD 1,000 = THB 23,977. Your KrungThai bank pays you THB 26,570 for AUD 1,000. -- Maestro Krungthai_AUD_THB.pdf ANZ_AUD_THB.pdf Link to comment Share on other sites More sharing options...
Mid Posted August 18, 2007 Share Posted August 18, 2007 'twasn't I that questioned Swiss efficiency .................. great railway . Link to comment Share on other sites More sharing options...
dave111223 Posted August 18, 2007 Share Posted August 18, 2007 I definitely noticed a big drop in the offshore rate, i wonder if the onshore rate will follow. http://finance.yahoo.com/currency/convert?...;amt=1&t=3m Link to comment Share on other sites More sharing options...
bangkoksingapore Posted August 18, 2007 Share Posted August 18, 2007 the baht should hit 35.5 soon. Link to comment Share on other sites More sharing options...
joeuk1 Posted August 18, 2007 Share Posted August 18, 2007 I dont know why people look at these currency converters the rates suck . Look up rates converting Sterling into Thai baht and these guys show 65 i have sent money to Thailand this last two weeks and its been converted above 68 . Only place i look for a rate is online Thai bank . JB Link to comment Share on other sites More sharing options...
bangkoksingapore Posted August 19, 2007 Share Posted August 19, 2007 people look at the offshore rate because they believe it to represent the market value of the Thai baht. Link to comment Share on other sites More sharing options...
Naam Posted August 19, 2007 Share Posted August 19, 2007 (edited) people look at the offshore rate because... even after several months of discussions they have not grasped that the offshore rate is irrelevant for them. edited for grammar Edited August 19, 2007 by Dr. Naam Link to comment Share on other sites More sharing options...
Gary A Posted August 19, 2007 Share Posted August 19, 2007 You can thank me for the baht weakening. It's just my luck. I wire transferred the equivalent of 800,000 baht on the 6th of August. I KNEW the baht would weaken. Link to comment Share on other sites More sharing options...
Carmine6 Posted August 19, 2007 Share Posted August 19, 2007 I dont know why people look at these currency converters the rates suck .Look up rates converting Sterling into Thai baht and these guys show 65 i have sent money to Thailand this last two weeks and its been converted above 68 . Only place i look for a rate is online Thai bank . JB They didn't used to suck, at least not for US $. Xe.com used to be the most accurate rate for my ATM withdrawals and it was barely different than say Bangkok Bank's rate. The difference was Bangkok Bank's rate was not updated as frequently so sometimes it was higher and sometimes lower. Once the government forced the onshore/offshore split it became useless. Link to comment Share on other sites More sharing options...
markm81 Posted August 19, 2007 Author Share Posted August 19, 2007 so many posts, however noone has actually answered the question. Today: Offshore rate for AUD TO THB: http://finance.yahoo.com/q?s=AUDTHB=X = 26.455 Onshore rate equivalent = http://www.bangkokbank.com/Bangkok+Bank+Th...es/FX+Rates.htm = 26.31 LAST WEEK: Offshore rate was still around 26.455 Onshore rate was 28 to 29. Bottom Line: The offshore rate is now the better rate. I can get a rate equal to that of the bangkok bank for example, by using a local forex company(i get about 26.3 now through AFEX). Last week I got about 10% better rate by sending AUD to thailand and getting the onshore rate. What gives? Link to comment Share on other sites More sharing options...
markm81 Posted August 19, 2007 Author Share Posted August 19, 2007 Or simply - Offshore rate(USD TO THB) = 33.2 Onshore rate(USD TO THB) = 33.37 difference = approx half a percent. Last week difference was about 10%(onshore rate being better) Link to comment Share on other sites More sharing options...
Naam Posted August 19, 2007 Share Posted August 19, 2007 Or simply - Offshore rate(USD TO THB) = 33.2 Onshore rate(USD TO THB) = 33.37 difference = approx half a percent. Last week difference was about 10%(onshore rate being better) wrong! the onshore rate for USD is 34.42 according to SCB and 34.69 according to Bloomberg. Bloomie publishes offshore rate 33.40 = difference 3.86% (percentage calculation based on offshore). Link to comment Share on other sites More sharing options...
bangkoksingapore Posted August 19, 2007 Share Posted August 19, 2007 mark, you are wrong. the onshore rate is better. Link to comment Share on other sites More sharing options...
bangkoksingapore Posted August 19, 2007 Share Posted August 19, 2007 people look at the offshore rate because... even after several months of discussions they have not grasped that the offshore rate is irrelevant for them. edited for grammar of course its relevant. it represents what a free market believes the Thai baht's true value is. Link to comment Share on other sites More sharing options...
markm81 Posted August 19, 2007 Author Share Posted August 19, 2007 (edited) guys, if you dont know the answer, just say so instead of posting a bunch of useless posts. According to bangkok bank, onshore rate is 33.37. http://www.bangkokbank.com/Bangkok+Bank+Th...es/FX+Rates.htm However it really doesn't matter. Point is, we can no longer get a BIG advantage using onshore rate(compared to a week ago). If anyone can give me an answer to that, please do. Edited August 19, 2007 by markm81 Link to comment Share on other sites More sharing options...
Carmine6 Posted August 19, 2007 Share Posted August 19, 2007 guys, if you dont know the answer, just say so instead of posting a bunch of useless posts. According to bangkok bank, onshore rate is 33.37. http://www.bangkokbank.com/Bangkok+Bank+Th...es/FX+Rates.htm However it really doesn't matter. Point is, we can no longer get a BIG advantage using onshore rate(compared to a week ago). If anyone can give me an answer to that, please do. 33.37 is the rate for $1 bills. For $50 and $100 bills it is 34.13. For wire transfers it is 34.30. The answer to your last question is yes, it is not so big an advantage as 1 week ago. Link to comment Share on other sites More sharing options...
Naam Posted August 19, 2007 Share Posted August 19, 2007 people look at the offshore rate because... even after several months of discussions they have not grasped that the offshore rate is irrelevant for them. edited for grammar of course its relevant. it represents what a free market believes the Thai baht's true value is. THB offshore is rather small and illiquid, that's why the expression "free market" does not apply. Link to comment Share on other sites More sharing options...
Naam Posted August 19, 2007 Share Posted August 19, 2007 guys, if you dont know the answer, just say so instead of posting a bunch of useless posts. According to bangkok bank, onshore rate is 33.37. http://www.bangkokbank.com/Bangkok+Bank+Th...es/FX+Rates.htm However it really doesn't matter. Point is, we can no longer get a BIG advantage using onshore rate(compared to a week ago). If anyone can give me an answer to that, please do. 33.37 is the rate for $1 bills. For $50 and $100 bills it is 34.13. For wire transfers it is 34.30. The answer to your last question is yes, it is not so big an advantage as 1 week ago. can anybody please explain to me what kind of "BIG advantage" you are talking about? nobody was/is forced to use the lower offhore rate when transferring money. Link to comment Share on other sites More sharing options...
BlackArtemis Posted August 19, 2007 Share Posted August 19, 2007 so sad, I am going home to visit in Oct. I have planned on making a nice exchange when I bought dollars for 30-31 baht Link to comment Share on other sites More sharing options...
Maestro Posted August 19, 2007 Share Posted August 19, 2007 Once the government forced the onshore/offshore split it became useless. How did the government do that? -- Maestro Link to comment Share on other sites More sharing options...
Maestro Posted August 19, 2007 Share Posted August 19, 2007 Today:Offshore rate for AUD TO THB: http://finance.yahoo.com/q?s=AUDTHB=X = 26.455 Onshore rate equivalent = http://www.bangkokbank.com/Bangkok+Bank+Th...es/FX+Rates.htm = 26.31 When did you last buy Baht from finance.yahoo.com? Other people, if they Baht outside Thailand, buy it from their bank, which means that the rate quoted by Yahoo has no meaning at all for them. Only the bank’s selling rate for the Baht counts. -- Maestro Link to comment Share on other sites More sharing options...
Carmine6 Posted August 19, 2007 Share Posted August 19, 2007 (edited) Once the government forced the onshore/offshore split it became useless. How did the government do that? -- Maestro Well based on what was posted on Thaivisa, the government started proping up the onshore rate late last year maybe. Early this year? Edit, looking back it was said to be the currency controls and not actual propping. Edited August 19, 2007 by Carmine6 Link to comment Share on other sites More sharing options...
Maestro Posted August 19, 2007 Share Posted August 19, 2007 ...the government started proping up the onshore rate late last year maybe. Early this year? The government tried very hard to weaken the Baht. The difference between onshore and offshore rates is due to market forces (fuelled partly by Thailand’s balance of payments surplus), not something the government forced. -- Maestro Link to comment Share on other sites More sharing options...
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