December 2007 Problem

[dvbutler]

In December 2007 I transferred $2,500 from Sovereign Bank in the US to my account at the Bank of Auydhya.

It came in as approximately $2,200.

I eventually determined (or guessed) that the problem was a huge discrepancy that existed at the time between offshore and onshore rates. This was the result of the military-supported government requiring investors to do something having to do with 30 per cent of any investment here.

I'm not saying that I got gypped by 30 per cent. But I think this law effected the offshore and onshore rates.

Does this ring a bell with anyone?

I am about to ask Sovereign Bank to send me $7,000.

Can I expect it to come in with somthing like $25 to $40 in fees at the American end, very small fees here at the Thai end and an exhange rate of about 35.0?

Thanks very much. David

[loong]

If you transfer money, make sure that it is transferred in your native currency and converted to Baht by your Thai bank. You always get a better exchange rate this way.

[thaihome]

The 30% withholding no longer applies to tranfers less then USD 20K. You should get a rate around 35 these days.

TH

[cclub75]

In December 2007 I transferred $2,500 from Sovereign Bank in the US to my account at the Bank of Auydhya.

It came in as approximately $2,200.

I eventually determined (or guessed) that the problem was a huge discrepancy that existed at the time between offshore and onshore rates. This was the result of the military-supported government requiring investors to do something having to do with 30 per cent of any investment here.

I'm not saying that I got gypped by 30 per cent. But I think this law effected the offshore and onshore rates.

Does this ring a bell with anyone?

It's unlikely... because at that time (capital controls were imposed from december 2006 to march 2008... the main component was a 30 % reserve during 1 year for incoming "hot money", with no interests) the idea was... to curb the appreciation of the THB.

"On shore" exchange rate for december 31 2007

http://www.scb.co.th/exchange/31122007_113600.htm

1 USD = 33,60 THB

Now, check the "on shore" rate (oanda.com, yahoo.com etc), same date : 30,27

With a classic transfert (of small amount), in USD, from USA to Thailand you should receive the "on shore" rate (even though the discrepancy doesn't exist anymore... the thai bank "buys" your incoming USD against THB at the local rates).

You can follow local rates here :

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

updated several times per day.

In any case, do not rely on foreign websites for exchange rates.

The "real" rates, are those used by thai banks. They are "real" because... this is what you'll get (if you sell or buy foreign currencies in Thailand).

Edited February 22, 2009 by cclub75