/Featured Quiz4 October - Weekly Featured Quiz - General Knowledge

[tomjamuk]

Dear members

I am going to LOS nest month and i need to transfer 30,000 GBP.

Late last year i sent nearly 20,000 GBP to thailand, most of it was sent with my wifes thai freinds who changed the sterling into baht and placed it into our bank whilst they were on holiday there, the other was a transfer from my UK bank to bangkok bank, The average rate i got was 68.5 baht, which i was very happy with.

Since late last year the value of the pound against the baht has dropped dramatically, it is now presently at 63.45 baht through TT.

I was hoping that the pound would strenghten again then i would send the rest (32,000) if it reached around 66 baht, I am now worrying as it doesnt look like it will go that way, infact people are saying it might even go to sub 60.

I know i should of done my homework or sent all the money last year but its to late now.

My question is

should i cut my losses and send it all now via bank wire? (multiple payments to avoid 30% holding)

or

wait another month and take it cash when i travel on april 10th next month?

or

wait a bit longer and hope it goes back to about 66 - 68 baht?

The money will be used to purchase a house in thailand and living expenses.

regards

Edited March 16, 2008 by tomjamuk

[Maestro]

Carry GBP 30,000 in cash to Thailand? I strongly advise against it.

Wait a bit longer, hoping for the rate to go up from the current 63.45 to 66-68 Baht? Anybody who knows for sure how the rate will develop over the next few months can make a fortune. There are people who make a living with currency speculation (foreign exchange trading) but in your situation you have to expect that the rate will go down, stay the same or go up, and act accordingly. This could mean flipping a coin, or transfer half now and the rest shortly before you really need it in Thailand. Personally, I have no idea how the rate will go in the short, middle or long term.

--

Maestro

[chiang mai]

I presume the cash is need to buy real estate in Thailand? If this is the case there are two obvious downsides to carrying the cash in personally: the first is the risk of theft and the second is the absence of any BOT confirmation stating that the funds were brought in from overseas. I suppose you could always declare it at customs and get a receipt that way but you'd be a braver man than most to display £30 grand at customs and I rate your chances of getting to your destination intact as slim.

As for timing on a funds transfer, a far safer bet: there are those who reckon strongly that the Baht will weaken later this year. If you support that claim and if you can wait, you should do so.

[naka]

The 30% witholding no longer exists

Naka.

[Governor]

As has been mentioned the 30% witholding tax no longer applies.

The dangers of carrying £30k in cash are obvious and of course you would probably not be insured against loss. You would have to declare it at UK customs and probably Thai, and it's best to get BOT proof that the money came from overseas.

As for when is the best time to bring your money, ask George Sorros, though I am not sure if he reads TV.

[chiang mai]

The 30% witholding no longer exists

Naka.

I make no reference to the 30% with holding and am also aware it has been abolished anyway so I don't quite understand the point you make Naka and now Govenor!

But unless I have missed something here the OP still requires proof the funds were brought in from overseas if he ever wishes to sell his property and export his money at a later date?

Edited March 17, 2008 by chiang mai

[chiang mai]

Found it, no problems, reading 101 and this time I'll finish the book!

[JimmyGreaves]

Pounds dropping again as we speak!

[tomjamuk]

thanks for the advise!

Well i heard that the 30% holding was still in place and once it was abolished the baht would go sub 60!! so hence the reason im worried

The baht might of dropped today but it has also gone up over the last week.

I think i willl wait and see what its like at the start of april near the time i go to thailand. Even if i did transfer it today at around 63 baht when it gets to thailand which takes 6 days from the account i have it in it could be much less.

im just lucky i sent 20000 grand when the baht was 68.5, the lowest i had seen the baht before was 66 about 5 years back so i wasnt expecting such a change in a short amount of time, 70 down to 62 in 3 nearly 4 months.