Best Way To Transfer Savings Into Thailand

[Korat88]

I realise that there may be somewhere on these forums that would provide an answer to this query, however there are SO many posts that I am hoping that some kind member might be able to answer this query for me or point me in the correct direction. I have already noted some contributor's fears about gold under separate topics begun by others, so have an idea about what might be said re: my query. Still I hope you will look kindly on this newbie....

Background to the question:

It looks very likely that I will be moving to live and work in Thailand. I am currently in the Middle East and am married to a Thai national, for just over 10 years, who I met in the Middle East. Whilst living here for over 15 years we have saved up some funds and need to move them with us. We already have some accounts in Thailand with some funds within and some property in my wife's name.

The question:

What is the best way to move the funds? The exchange rate will mean that we will lose-out if we send bank to bank as the Baht is strong now. The other thought I had was to buy gold bullion (I have some already) and hope that in a year + the selling rate would be much higher and benefit accordingly. With the latter you just don't know what will happen though, so it appears foolish to risk too much this way. Your positive/sensible feedback would be very much appreciated.

Edited February 23, 2008 by Korat88

[naka]

Betting on gold ... Up to you, who knows.

Regarding cash, sent in original currency (certainly not Baht) via SWIFT bank to bank transfer.

Naka.

[Korat88]

Betting on gold ... Up to you, who knows.

Regarding cash, sent in original currency (certainly not Baht) via SWIFT bank to bank transfer.

Naka.

Naka - Many thanks for your reply. Without you I would be none the wiser.

I think that in the end I will be using a combination of both and see how things work out. It is good to see you confirm what I had picked-up from other posts, i.e. always send in the currency of the land you live in and NOT in Thai Baht. I believe everyone agrees that this produces a better exchange rate and hence you get more Baht for your money.

If anyone else has any other alternatives worth considering, then please feel free to add them to Naka's thoughts.

[GuestHouse]

It depends where you have your money?

The advice on sending money by SWIFT transfer in Bhat is good - I'd add to that - Do a trial transfer of a smallish amount to prove that you have all the addresses and account details correct, before you send over any large amounts.

I'd also question bringing what is presumably a large amount of cash to Thailand - You can get far better interest rates in non Thai banks and the range of investment vehicles open to you outside of Thailand are also far more varied and favorable.

Additionally there is the golden rule of not bringing money to Thailand that you can't afford to loose. As you have stated you own property in your wife's name and you are about to make a life change moving to Thailand - "Easy as she goes" would be my advice.

Leave your money outside of Thailand, in higher interest bank accounts/better investment vehicles and importantly not in the same basket as your house and future life.

With your savings outside of Thailand you can draw income from interest/investment growth while maintaining secure control over savings. You can also choose to bring money into Thailand when you are happy with the exchange rates (which vary through the year).

As for Gold.

If you bought your gold a while ago you might see some growth on the purchase, but if you are buying gold to move currency (and provided there are no currency movement restrictions) then you are carrying a lot of cash in a very easily moved (removed) form.

You are also going to be paying exchange rates to the Gold shop - and you don't see many poor gold shop owners around!!!

[Maestro]

Aren’t there restrictions in Thailand on the importation of gold by individual persons?

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Maestro

[Sophon]

i.e. always send in the currency of the land you live in and NOT in Thai Baht. I believe everyone agrees that this produces a better exchange rate and hence you get more Baht for your money.

Not necessarily true.

Yes, you should never send THB and if your are from the US, England or one of the euro-countries then by all means send your own currency. But if you are from a country with a "minor" currency then it could very well be better for you to make your transfer in one of the major currencies (USD normally has the lowest spreads). This would result in two exchanges (which should normally be avoided) but the spread on each exchange would most likely be smaller - possibly by a large enough margin to offset the extra exchange.

To give you an example:

The USD TT buy/sell rates (from Bangkok Bank) for the 22nd of February were:

32.20 / 32.40

Compared to the mid rate of 32.30 the spread of 0.10 equals about 0.3 percent.

Same day's DKK (my own currency and a minor currency) TT buy/sell rates were:

6.3625 / 6.4625

Compared to the mid rate of 6.4125 the spread of 0.05 equals about 0.8 percent.

Since my home bank only has a spread when changing to USD of about 0.15 percent I always make all my transfers in USD instead of my "home currency" of DKK.

As you mention currently living in the middle east then check out the exchange rates before doing anything, as your "home currency" (if you are talking about a middle eastern currency) could possibly be given a very bad exchange rate if received in Thailand.

I would normally also recommend keeping the bulk of your funds outside Thailand, but have no idea if keeping them in the middle east wolud be preferable.

Sophon

[Korat88]

Aren't there restrictions in Thailand on the importation of gold by individual persons?

--

Maestro

Very helpful replies GuestHouse, Maestro and Sophon. Thanks.

Re: restrictions on gold importation - You may well be correct, but I will not be bringing in a large and obvious quantity. I brought a small quantity in on my last visit (150 grams) and had no problems. 500 grams or so might be more of an issue and it may well be worth my while to make sure about the rules as you state.

GuestHouse - Agree on the "Easy as she goes" advice. Very wise.

Sophon - Don't you have to pay double charges for two transactions which cancel out any savings? I will have to look into this, but thanks for the pointer.

[GuestHouse]

GuestHouse - Agree on the "Easy as she goes" advice. Very wise.

I hope you take it - Moving to Thailand will change many things about your life and your relationship. Investments safely outside of Thailand is a good idea. If there are any problems getting that accepted then consider that as an early warning.

[Sophon]

Sophon - Don't you have to pay double charges for two transactions which cancel out any savings? I will have to look into this, but thanks for the pointer.

It's only one transaction. I ask my bank to make a SWIFT transfer but just specify transfer currency to be USD instead of DKK. My bank charges the same fee irrespective of transfer currency.

Some banks may have a separate fee for the currency exchange or different fees for transfers with/without exchange, and if that's the case it may be better to avoid the extra exchange. Check your bank's charges, and if you are considering making the transfer in an "unusual" currency, also check what kind of spread your Thai bank has on that currency.

Sophon