Export Sight Bill

[gunnyd]

Hi Y'all,

Whenever I check the change rates of any of the major Thai banks they always list something called an "Export Sight Bill" as having the best rate of exchange. I have googled it and searched high and low for information and have come up dry.

I will be returning to LOS soon and would prefer not carrying a large sum of cash on my person.

Has anyone ever gotten a sight bill in the US from their bank? If so, how did it work?

I hate getting hammered on currency conversion service charges from my American Express and my Bank of America ATM card. 3% conversion fee on purchases plus $7.50 USD ATM fee if I get cash from an ATM.

Any help would be greatly appreciated,

Cheers

GunnyD

[Pib]

Wire the money and you'll get the slightly higher TT rate; the sight bill exchange rate is usually about a tenth of a baht lower per USD than the TT rate....and the sight bill rate is usually the exchange rate rate given for traveler checks plus an approx 30 baht per traveler's check exchange fee. You can even wire money to a bank without an account at that bank...check out the Bangkok Bank web site for more info on wiring money this way.

[Dave the Dude]

Hi Y'all,

Whenever I check the change rates of any of the major Thai banks they always list something called an "Export Sight Bill" as having the best rate of exchange. I have googled it and searched high and low for information and have come up dry.

GunnyD

Hi gunnyd

WOW! this might mean I know something Google doesn't. Hope I get a prize.

When I was a Commercial Foreign Clerk in the UK centuries ago, we dealt with Sight bills and Bill of Credit. A Sight Bill is one that is paid immediately on presentation and another name for the type of rate is 'Spot Rate' e.g. paid on the spot. So, in other words the Export sight bill rate is a rate for 'non' cash/commercial transfers of fund.

Dave

Note to self :- Try to forget unimportant trivia.

[hyperdimension]

What is the difference between "sight bill" and "D/D"?

From what I've been reading from internet searches, D/D stands for "demand draft", and seems to be the same thing as a sight bill, but a lot of the bank currency exchange rate pages use both terms, which is confusing. e.g:

http://203.147.4.235/Bankrate/exchange_rate.htm

http://www.thanachartbank.co.th/nbank/exch...hange_rate.aspx

http://www.scb.co.th/html/exchange/bk-txtexchange.htm

Can someone who is knowledgable in currency exchange please explain?

[hyperdimension]

Does anyone know the difference between a Sight bill and a D/D?

[Maestro]

The Sight Bill is a type of documentary credit used in export and import operations and works the way Dave explained it. It is not something that your as a traveller can use.

A demand draft (D/D) is a cheque issued by a bank drawn on its account at another bank. Because the money is already deposited in the bank where you are going to cash the cheque the amount of the cheque is paid to you on “demand”, ie immediately. You do not have to wait for the cheque to clear.

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Maestro

[Maestro]

I appear to have given wrong information about the Demand Draft, which I confused with the Bank Draft.

Demand Draft

A method used by individuals to make transfer payments from one bank account to another. Demand drafts are marketed as a relatively secure method for cashing checks. The major difference between demand drafts and normal checks is that demand drafts do not require a signature in order to be cashed.

Also known as "remotely created checks".

Source: www.investopedia.com/terms/d/demanddraft.asp

See also: en.wikipedia.org/wiki/Demand_draft

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Maestro