Investing In Thai Baht

[Drew345]

Hello Thai Baht Owners,

I am thinking about putting some of my savings/investment money into foreign currencies; should have done this a couple of years ago, but probably better late than broke. Since I live in Thailand and Korea it makes sense to have some savings in Baht and Won.

For foreign currency investing, seems like fixed interest deposits (like U.S. “CD”s) would be a good way to go. I see Kasikornbank offers these, though I haven’t checked the rates yet.

Any ideas on good ways to keep a bit of savings, maybe $50,000-100,000, in Thai Baht?

Would be nice if the money was earning interest and government insured; but other investment options could be considered.

Is it possible to take the money back out of the country in the future? Or is there a limit on amount of Baht that can be taken back out?

Thanks for any ideas!

Sincerely, Drew

[Irene]

Check with those banks affiliated with foreign big names like HSBC, Standard Chartered, UOB because they are more conversant with foreign investors. There are plenty of leeways to invest in Thailand. Go to people like Phatra or tisco for stock brokerage services if you are a bit more adventurous.

Money comes in if properly declared with your banker when brought in under Exchange Control Form would ensure no problem upon repatriation in future.

[naka]

All the Thai banks offer term deposits, about 2.25% for 12 months.

But getting your money back out is another matter.

Naka.

[BEENTHEREDONETHAT]

Naka

You want to elaborate on that a little. Is there a problem getting it out?

[Naam]

Naka is right! getting your money in within 24 hours is not a problem. taking it LEGALLY out is a freaking headache and please no fairy tales like "you only need to..."

[Irene]

I had experiences in remitting funds out for proceeds on sales of condos and yearly rental income received by two foreign friends. All I need was to show copies of Exchange Control Form as previously registered with the bank that money were originally brought into Thailand for the condo purchases by that persons. Second, I had to give copies of evidences of the related taxes actually paid or intended to be paid on the gain and rental income. These have always been approved within a few days by the bank.

If you bring funds under an official channel by registering with your commercial bank under an exchange control form (declaring the purpose of inward fund as investments), expatriation of capital fund and related income is normally easy.

[Naam]

Irene,

one and a half years ago i transferred (by mistake) several million Baht more than i needed to make the final payment for the construction of our home. when asking SCB about repatriating the surplus funds i was faced to deal with a procedure for which i considered my time much too precious.

later it turned out that my laziness was a blessing in disguise as i bought those Baht at an exchange rate we might not see for quite some time. but that's besides the point.

[naka]

Naka

You want to elaborate on that a little. Is there a problem getting it out?

When I talk about 'In' and 'Out', I'm talking about the country, not the bank.

The banks can, if they want to, give you a real old runaround when you try to get

funds back out of the country. Must get paper central bank etc. etc.

There again, you might just be lucky enough to be dealing with a helpful manager.

A bit of a lottery I'm afraid.

Naka.

[Irene]

Naka

You want to elaborate on that a little. Is there a problem getting it out?

When I talk about 'In' and 'Out', I'm talking about the country, not the bank.

The banks can, if they want to, give you a real old runaround when you try to get

funds back out of the country. Must get paper central bank etc. etc.

There again, you might just be lucky enough to be dealing with a helpful manager.

A bit of a lottery I'm afraid.

Naka.

Good point, you could be unlucky if you did not plan your inward movement of fund brought into Thailand properly because the records would be lost at the bank's head office. However, you do not need luck to have the 'OUT' transaction done relatively easily if:

First, pick a bank in your location that is conversant with cross-border transactions, normally physically large in your area. Ask them on the procedures of "IN" and "OUT" remittances. If they explain that you need Exchange Control (EC) form etc., then you will be dealing with a bank that is in the know. (Normally, banks owned by foreign banks are best because of their large foreign customers, e.g. Standard Chartered).

Second, when brought in the money, ensure a declaration for investment purpose on the Exchange Control form with a copy to be retained by you for future reference.

Third, uses of the fund for investment should be documented and retained for future reference. For example, if you use to buy a condo, agreements and title deed must be ready for verification. If you use to buy treasury bonds, then copies of the receipts etc.

Fourth, try to remit a small sum of rental out or interest out, then you would be asked to give a copy of EC form, evidence of your tax payment in the case of rental. In the case of interest, it is already subject to withholding tax and your notice of interest receipt is sufficient.

Fifth, if you have remitted once with a small sum, then the next time, it will be like "fairy tale" in remitting the fund out, almost immediately. Why? Because there is a record of your file and bank clerks always love to see any precedents which are in accordance with the rules of the Central Bank (Bank of Thailand).

THE SECRET IS TO PICK THE RIGHT BANK AT FIRST TO RECEIVE THE FUND.