Transfering Money, Thailand To Uk

[Stabbo-Lad]

Hi all,

I've moved back to the UK and (all being well) the wife and kids will be joining me as soon as they get their settlement visas sorted.

The wife's in the process of selling our house, the money for which will be going into her Siam Commercial Bank a/c.

Whats the best way to get the money into my UK HSBC a/c? bank transfer or banker's draft/cheque made payable to me?

In either case, does the money need to be sent in THB to take advantage of the UK's lower exchange rate?

Any other options available?

I'm hoping this is going to be be a fairly painless for her, but TIT!

TIA,

SL.

[Daveroc]

A transfer by the interbank SWIFT system will have the funds in your hands within 24/48 hours of instructing your Bank in Thailand. Using Bank drafts, while slightly cheaper intially may cause delays while the Draft is cleared and could incur further costs. The option is yours as to whether you remit in Sterling or THB. However it is likely you will get a more favourable rate by converting in Thailand as the market for THB in UK will possibly be somewhat restricted and hence a factor in setting an exchange rate.

Woulds suggest your wife call at her Bank and discuss requirements by way of documentation needed to remit the frunds offshore. A discussion at this point may avoid frustrations in the future when you wish to remit the funds quickly.

[chiang mai]

Electronic transfers are obviously the quickest route but if that's not possible, have your wife buy Sterling Cashiers Cheques from Bangkok Bank, drawn on Bangkok Bank London (larger Thai branches only), these will clear in three working days once deposited into your UK account and the exchange rate in Thailand (THB to GBP) is the same as the TT conversion rate hence very attractive. Cost of cheques is a couple of hundred Baht, limit USD equivalent to 20,000 per cheque but multiple cheques can be purchased. Also, always make the currency exchange in Thailand where the rates/margins are more favorable, - convert THB to GBP in Thailand and GBP to THB in Thailand, never in the UK although from your post you may need to study this point for a moment.

[Stabbo-Lad]

Also, always make the currency exchange in Thailand where the rates/margins are more favorable, - convert THB to GBP in Thailand and GBP to THB in Thailand, never in the UK although from your post you may need to study this point for a moment.

Thanks guys and apologies for the late reply.

Chiang Mai,

Maybe I've gotten the whole onshore/offshore business around my neck. I know when I transfer money TO Thailand I send it in GBP and get it converted to THB by the Thai bank to take advantage of the better rate. Does the same not work in reverse?

For example:

Thai x/r = 50, UK x/r = 45. (rough figures)

If I change, say 1 million Baht into GBP and then Swift transfer to the UK that equates to 20000GBP (1m/50),

whereas, if I Swift transfer 1M THB and let HSBC UK convert it into GBP that would be 22222 (1M/45).

Apologies for my ignorance, just trying understand the procedure.

Have I got it totally wrong?

SL.

[clinique]

Hi Stabbo-lad,

Lets see if I can help here

Just to make sure we are on the same page.

When you send GBP to Thailand and change it here the thai bank is "buying" (from you) GBP: todays rate 49.00 baht = 1 GBP

When you want to send GBP from Thailand to UK the Thai bank is "selling" (to you) GBP : todays rate 49.75 baht = 1 GBP

So if you send THB to the UK the bank there will be buying THB.

HSBC UKs buying rate which i just got of their website link here is 44.95 baht = 1 GBP

So your calculation appears correct.

BUT the rate on their website is for "selling" THB to you not buying . So you need to check with them their buying rate for THB AND if they have a limit on how much.

You could also ask them if your wife can send the funds thru the HSBC branch in Bangkok.??? Best you ask their International section as its unlikely someone at a local branch will know the correct answer..!

You and/or your wife will also have to find out if there is approval needed from the Bank of Thailand (reserve bank) as its obviously a large sum..

Hope this helps.

Edited February 26, 2011 by clinique

[chiang mai]

In very approximate terms, for the sake of example, if the "spot" rate ( the mid point between the international buy/sell rate) on THB/GBP is 50:

Thai banks will buy your Pounds for say 49 Baht per Pound and sell them back to you for say 51 Baht per Pound.

UK banks will buy your Pounds at say 46 Baht per Pound and sell them back to you for say 54 Baht per Pound.

Note: if you use Travelex in the UK airports the rates will be much worse.

Currency exchange rate margins in Asia are nearly always much much better than anything you could get at UK high street banks.

BUT

there's a secondary issue with your original post and that has to do with your Thai wife and what transactions she can undertake on your behalf and which type of Thai account you hold, foriegn currency account restrictions apply to Thai citizens plus "resident" and "non-resident" Thai bank accounts also have different restrictions, which one do you have?

[Stabbo-Lad]

there's a secondary issue with your original post and that has to do with your Thai wife and what transactions she can undertake on your behalf and which type of Thai account you hold, foriegn currency account restrictions apply to Thai citizens plus "resident" and "non-resident" Thai bank accounts also have different restrictions, which one do you have?

The money is now in my wife's SCB standard-type savings account with a passbook. No foreign currency accounts involved.

[chiang mai]

there's a secondary issue with your original post and that has to do with your Thai wife and what transactions she can undertake on your behalf and which type of Thai account you hold, foriegn currency account restrictions apply to Thai citizens plus "resident" and "non-resident" Thai bank accounts also have different restrictions, which one do you have?

The money is now in my wife's SCB standard-type savings account with a passbook. No foreign currency accounts involved.

In that case your wife will need to do some research to see how SHE can make that currency conversion and I believe this is not straight forward. It's reasonably easy for foreigners to convert Thai Baht into foreign currency and then export it abroad, it's a different matter entirely for Thai nationals though and I don't know the answer I'm afraid, unless the funds are transferred into your name and deposited into a non-resident account.

[chiang mai]

A link below that will give you chapter and verse on foreign currency transactions for Thai's and foreigners. But first an extract that is the core problem:

"Thai residents and Thai-registered companies can open foreign currency accounts. No limit is placed on funds that can be deposited. However, the account must be with an authorized Thai bank and funds must originate from outside Thailand".

http://www.bot.or.th/english/foreignexchangeregulations/fxregulation/pages/exchangecontrollaw.aspx