Can someone explain this or is it another TIT?

Headed to Malaysia for a short trip and wanted some Ringits. Went to the Thai banks in Satun, not only was the buy/sell spread around 10% but they were not really interested in exchanging the cash. One bank told me they don't even have Ringits but would have to order them from Hat Yai. At another bank I was told to go to the Chinese Pharmacy, "they have better rates". And indeed they did, around a 5% spread.

A few more enquiries and it transpires the Chinese owned businesses, gold shops, pharmacies etc. also run the Ringit/Baht exchange. By wandering around a few shops I managed to get a percent or so more on the rate, nut it's not advertised, you have to ask.

In my naivity I would have thought that the banks would be very interested in being competitive in border traffic and offer a relatively narrow spread due to the volume of currency exchange. The opposite is the case. Strange.

Thanks for the advice. I have found the best rates for money changing (usually Australian dollars to Thai baht; US dollars to Thai baht; Malaysian ringits to Thai baht etc) have been at Suvarnabhumi Airport. The only currencies I couldn't change were Laos kip and Cambodian local currency.

Peter

The ringit is still tightly controlled and not freely traded on world markets. One of the few remaining currencies with a black market. Chinese RMB is another.

TH