March 23, 200817 yr I'm a little confused by the onshore and offshore rates. If I take 400,000 Baht to a bank here and transfer to a US dollar account in the US, can I expect to receive about $11,764 (34 baht to the dollar) in my US bank account or about $12,900 (31 baht to the dollar)?
March 23, 200817 yr You get the onshore rate. On Friday, for example, Bangkok Bank’s selling rate was THB 31.37 for the dollar for TT (telegraphic transfers). This would have given you USD 12,751.04 and the bank charges a fee of THB 500 -- Maestro The single biggest problem in communication is the illusion that it has taken place
March 23, 200817 yr BigSnake, you seem to have ignored the fact that the OP wants to change Baht into US dollars. Therefore, for this type of transaction, the lower the rate the better. -- Maestro The single biggest problem in communication is the illusion that it has taken place
March 23, 200817 yr Author You get the onshore rate. On Friday, for example, Bangkok Bank’s selling rate was THB 31.37 for the dollar for TT (telegraphic transfers). This would have given you USD 12,751.04 and the bank charges a fee of THB 500-- Maestro Great. Can you explain when the offshore rate would be used?
March 23, 200817 yr The offshore rate would be used if you could have your Thai bank send Baht to the US bank. However, Thailand does not allow this. The conversion into foreign currency must be made in Thailand. -- Maestro The single biggest problem in communication is the illusion that it has taken place
March 24, 200817 yr Author The offshore rate would be used if you could have your Thai bank send Baht to the US bank. However, Thailand does not allow this. The conversion into foreign currency must be made in Thailand.-- Maestro So it works out in my favor in this case. That's a pleasant surprise. If the 34 rate is applied outside Thailand, what stops tourists from buying all their Baht at home before coming over for a holiday?
March 24, 200817 yr The offshore rate would be used if you could have your Thai bank send Baht to the US bank. However, Thailand does not allow this. The conversion into foreign currency must be made in Thailand.-- Maestro So it works out in my favor in this case. That's a pleasant surprise. If the 34 rate is applied outside Thailand, what stops tourists from buying all their Baht at home before coming over for a holiday? there is no "34 rate" offshore and neither does a "34 rate" exist onshore.
March 24, 200817 yr Author The offshore rate would be used if you could have your Thai bank send Baht to the US bank. However, Thailand does not allow this. The conversion into foreign currency must be made in Thailand.-- Maestro So it works out in my favor in this case. That's a pleasant surprise. If the 34 rate is applied outside Thailand, what stops tourists from buying all their Baht at home before coming over for a holiday? there is no "34 rate" offshore and neither does a "34 rate" exist onshore. Back a couple months ago when I was watching Bloomberg daily, it clearly showed two different rates for Thai Baht. Offshore and onshore. 31 and 34. Am I missing something? http://en.wikipedia.org/wiki/Thai_baht There was no significant difference between offshore rate and onshore rates until they were introduced by Reserve Requirement on Short-Term Capital Inflows on December 19, 2006. Since then, the divergence has become marked, with the smaller offshore rates being up to 10% or more higher than large turnover onshore rate. It seems that ATM withdrawals get the onshore rate Also: http://www.bloomberg.com/apps/news?pid=206...&refer=asia Clearly, there have been two different rates. Have things recently changed?
March 24, 200817 yr Back a couple months ago when I was watching Bloomberg daily, it clearly showed two different rates for Thai Baht. Offshore and onshore. 31 and 34. Am I missing something? yes you do miss something! today is not "a couple of months ago"
March 24, 200817 yr Author Back a couple months ago when I was watching Bloomberg daily, it clearly showed two different rates for Thai Baht. Offshore and onshore. 31 and 34. Am I missing something?yes you do miss something! today is not "a couple of months ago" I guess I should have kept watching. So now the offshore and onshore rates are the same or only marginally different? On what date did this take effect?
March 24, 200817 yr Try this for current rates. http://www.scb.co.th/html/exchange/bk-txtexchange.htm
March 24, 200817 yr Back a couple months ago when I was watching Bloomberg daily, it clearly showed two different rates for Thai Baht. Offshore and onshore. 31 and 34. Am I missing something?yes you do miss something! today is not "a couple of months ago" I guess I should have kept watching. So now the offshore and onshore rates are the same or only marginally different? On what date did this take effect? only last week both rates converged. there was no specific date. the conversion was slow and started more or less with the civilian government taking over.
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