Exchange Rates

[ChiangMaiThai]

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)?

[Maestro]

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

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Maestro

[BigSnake]

no 31 OFFSHORE rate, 34 in your dreams.

[Maestro]

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.

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Maestro

[ChiangMaiThai]

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

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Maestro

Great. Can you explain when the offshore rate would be used?

[Maestro]

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.

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Maestro

[ChiangMaiThai]

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.

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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?

[Naam]

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.

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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.

Edited March 24, 2008 by Naam

[ChiangMaiThai]

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.

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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?

Edited March 24, 2008 by ChiangMaiThai

[Naam]

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"

[ChiangMaiThai]

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?

[BEENTHEREDONETHAT]

Try this for current rates.

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

[chiang mai]

The 30% with holding on capital inflows was lifted about two weeks ago.

[Naam]

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.