No More Difference Between Onshore And Offshore Rate

[Carmine6]

...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.

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Maestro

Oh, that's what you were asking about? You're right I should have said "actions of the government led to" instead of the "government forced the".

Must be my bias against large government sneaking into my typing.

[Naam]

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.

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Maestro

all said!

[markm81]

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.

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Maestro

Yahoo gives the interbank rate, upon which my local banks' rate is based.

However to get offshore rate, i wouldnt buy from bank locally buy from a forex company(I used afex - www.afex.com). Afex give me a rate very similar to the interbank rate given on yahoo - they take a very small margin compared to local banks.

[ThaiLover1]

"TMB Bank executive vice president Satian Tantanasarit said the difference between the onshore and offshore quotes narrowed due mainly to central-bank relaxation of non-resident controls.

The central bank has begun allowing non-residents with underlying deals made before last December 19 to hedge baht-denominated transactions with local financial institutions without being subject to the 30-per-cent reserve requirement."

http://www.tmcnet.com/usubmit/2007/08/15/2864853.htm

I hope it helps answer the question of the original poster.

Nils

[JAS21]

http://www.bangkokbank.com/Bangkok+Bank/Pe...tes/default.htm

This is about what you will get here in Thailand...TT.... for a Swift transfer . The bank here charges about 200baht and then you will have to add on the charges of the sending bank/institution. You get the rate on the day that the money gets here. Send less than equivalent of US$20000 or there may be a hold up getting your money..many threads on this.

Ensure that you send in your home currency and not Baht........else you will cry.