Why A Private Money Changer ,Have The Better Exchange Rate Then A Thai Bank?

[Sandman77]

Hello!

i recogneized many time,that in shukomvit road,and espasaly in pattaya,the private exchange rates are better,some time one thb higher for the euro then the banks!

usaly the best exchange rate for atm use have the kasikorn bank! to the €

i alk the money changer last year,in naklua road,where he bring all the € from the tourists,he says,he send it to singapore,there i got the better interests rates,then in thailand,can some one confirm this,how high the diffrent?

on the airport,the exchange rate es very bad on all banks,when you come out,at the end bedore the exit a liitle bit higher!

usaly the private changer,never check the paper money,under the violett light,in kasikorn the always check it,one time 2 year ago in udonthani it happen with my tourguide that the bank wants a copy of passport,only happen on thai goverment bank,and ,the tourgide have also confirmed with his phone number and signature!

also inside same bank,the excahnge rate never the same,someone told me,that in thailand 2 times a day the exchange rate change,on what time exactly?

why it change to time,when the daily international exchange rate change only one time?

Edited October 22, 2011 by Sandman77

[CharlieH]

The Exchange rates vary according to world markets.

The main exchanges of Europe and the US are half a day behind Thailand. That's why they change in Thailand at 08.30 (previous day close ) and around 1.30pm (Bangkok Bank).(London opening) but this is only a very general explanation.

Edited October 23, 2011 by CharlieH

[OriginalPoster]

The Exchange rates vary according to world markets.

The main exchanges of Europe and the US are half a day behind Thailand. That's why they change in Thailand at 08.30 (previous day close ) and around 1.30pm (Bangkok Bank).(London opening) but this is only a very general explanation.

So you're saying that the private money changers are able to arbitrage half-daily fluctuations in exchange rates to their favor consistently over a long period of a time?

[Samuian]

The usual background is local black money cleared into unsuspicious currency and then brought or wired outside the country. I bet he, the money changer/s is/are of indian origin!

There, in Nepal and in Pakistan same thing, there were times when financial controls barred locals from exchanging larger amounts into foreign currencies without approval of the revenue dept. understand?

[OriginalPoster]

The usual background is local black money cleared into unsuspicious currency and then brought or wired outside the country. I bet he, the money changer/s is/are of indian origin!

There, in Nepal and in Pakistan same thing, there were times when financial controls barred locals from exchanging larger amounts into foreign currencies without approval of the revenue dept. understand?

Maybe what you're saying is very clear to everyone else, but I'm having a problem understanding that. Are you saying that the reason that they are willing to offering better rates is because they are laundering dirty Baht? Might be able to explain some of the operators that way but I'd be surprised if it was an across the board thing.

Edited October 24, 2011 by OriginalPoster

[Naam]

one major reason that money changers can offer better rates because they don't have the overheads banks have. as simple as that.

by the way, i have never seen an Indian money changer but in most Indian tailor or spice shops you will get a better rate for cash than what the average banks offers. that does not apply only to Thailand but also to a bunch of other countries which have currency restrictions.

"dirty" Baht are not "laundered" when cash is exchanged for cash.

[Naam]

The Exchange rates vary according to world markets.

The main exchanges of Europe and the US are half a day behind Thailand. That's why they change in Thailand at 08.30 (previous day close ) and around 1.30pm (Bangkok Bank).(London opening) but this is only a very general explanation.

no such thing like "behind half a day" exists. currencies are traded round the clock starting Sunday 1900hrs U.S. Eastern Time and ending Saturday 0900hrs Hong Kong local time. not only money changers but everybody with an internet connection is able to access market rates which do NOT fluctuate according to any specific markets.

[Naam]

also inside same bank,the excahnge rate never the same,someone told me,that in thailand 2 times a day the exchange rate change,on what time exactly?

why it change to time,when the daily international exchange rate change only one time?

if "someone" tells you again "something" like "2 times a day" you tell him that exchange rates of major currencies change every second. even Mickey Mouse currencies like the Thai Baht fluctuate dozens of times every day.

this is what EUR THB rate looked last friday over a period of 24 hours:

[Samuian]

The usual background is local black money cleared into unsuspicious currency and then brought or wired outside the country. I bet he, the money changer/s is/are of indian origin!

There, in Nepal and in Pakistan same thing, there were times when financial controls barred locals from exchanging larger amounts into foreign currencies without approval of the revenue dept. understand?

Maybe what you're saying is very clear to everyone else, but I'm having a problem understanding that. Are you saying that the reason that they are willing to offering better rates is because they are laundering dirty Baht? Might be able to explain some of the operators that way but I'd be surprised if it was an across the board thing.

Well basically I passed on what I experienced and must admit that I "dunno" but still very likely a "laundry shop"!

But in those times I had exchange rates on the "market" in any shop in Lahore, Islamabad, Kathmandu, Pahar Ganj (New Delhi), Kolkata, Chennai, Mumbay.. which exceeded the Bank-X-change rates by up to 50% - now - can any one tell me how this kind of forex-trading profits are accumulated, else then by non-legal methods?

Edited October 24, 2011 by Samuian

[Naam]

But in those times I had exchange rates on the "market" in any shop in Lahore, Islamabad, Kathmandu, Pahar Ganj (New Delhi), Kolkata, Chennai, Mumbay.. which exceeded the Bank-X-change rates by up to 50% - now - can any one tell me how this kind of forex-trading profits are accumulated, else then by non-legal methods?

the profits are achieved by the difference offer and demand by clients who are not willing to accept fancy buying and selling rates set by a cheating central bank.

that may apply to Lahore, but please no more fairy tale as far as India is concerned. since more than 20 years the cash black market rate in India is a mere 3-5% difference depending on what foreign currency and last not least what denominations are sold against INR.

[IMA_FARANG]

The Exchange rates vary according to world markets.

The main exchanges of Europe and the US are half a day behind Thailand. That's why they change in Thailand at 08.30 (previous day close ) and around 1.30pm (Bangkok Bank).(London opening) but this is only a very general explanation.

So you're saying that the private money changers are able to arbitrage half-daily fluctuations in exchange rates to their favor consistently over a long period of a time?

------------------

Straight answer...yes...but only because they have the personal and business contacts to do it.

If you're not in the club already...you're probably not ever going to be asked to join.

A Thai-Chinese friend I knew who spoke excellant English once discribed it as the "Thai-Chinese Chamber of Commerce".

He wasn't talking about a oficial organization.

Just a group of friends (my personal experience) who gathered together roughly once a month for a friendly dinner of Chinese food.

Dam_ good food too. Brandy and cigars after the dinner, conversation in Chinese (which I don't speak). Maybe a few handshakes to seal business deals.

Not the kind of people you should try to scam...or sudden health problems might be in your near future.

I was simply an outsider..a "token farang" there.

Attendence B.O.A.I.O. ... By Officially Approved Invitation Only.

Don't have a clue why mine was approved.

Edited October 24, 2011 by IMA_FARANG

[OriginalPoster]

one major reason that money changers can offer better rates because they don't have the overheads banks have. as simple as that.

Makes sense. On small amounts of cash, my ATM card or credit card gives me a better exchange rate than what Thai banks or private money chagers will give me. Only stands to reason that a private money changer might be able to get money at a rate similar to my credit cards' interbank rate, and if they were able to operate on smaller margins than a bank they'd still be able to make money while offering consumers a better rate.

Edited October 24, 2011 by OriginalPoster

[Naam]

So you're saying that the private money changers are able to arbitrage half-daily fluctuations in exchange rates to their favor consistently over a long period of a time?

Straight answer...yes...but only because they have the personal and business contacts to do it.

and these personal and business "contacts" are willing to accept losses in favour of the "Thai-Chinese Chamber of Commerce" when dealing currencies?

next good fairy tale please!

Edited October 24, 2011 by Naam

[OriginalPoster]

The Exchange rates vary according to world markets.

The main exchanges of Europe and the US are half a day behind Thailand. That's why they change in Thailand at 08.30 (previous day close ) and around 1.30pm (Bangkok Bank).(London opening) but this is only a very general explanation.

So you're saying that the private money changers are able to arbitrage half-daily fluctuations in exchange rates to their favor consistently over a long period of a time?

------------------

Straight answer...yes...but only because they have the personal and business contacts to do it.

If you're not in the club already...you're probably not ever going to be asked to join.

A Thai-Chinese friend I knew who spoke excellant English once discribed it as the "Thai-Chinese Chamber of Commerce".

He wasn't talking about a oficial organization.

Just a group of friends (my personal experience) who gathered together roughly once a month for a friendly dinner of Chinese food.

Dam_ good food too. Brandy and cigars after the dinner, conversation in Chinese (which I don't speak). Maybe a few handshakes to seal business deals.

Not the kind of people you should try to scam...or sudden health problems might be in your near future.

I was simply an outsider..a "token farang" there.

Attendence B.O.A.I.O. ... By Officially Approved Invitation Only.

Don't have a clue why mine was approved.

I've been to dinners with Thai-Chinese businessmen too. Probably they got a kick out of making you think that they were the Bilderberg Group.

[cloudhopper]

"dirty" Baht are not "laundered" when cash is exchanged for cash.

Interesting general point I never considered.

[topt]

also inside same bank,the excahnge rate never the same,someone told me,that in thailand 2 times a day the exchange rate change,on what time exactly?

why it change to time,when the daily international exchange rate change only one time?

if "someone" tells you again "something" like "2 times a day" you tell him that exchange rates of major currencies change every second. even Mickey Mouse currencies like the Thai Baht fluctuate dozens of times every day.

this is what EUR THB rate looked last friday over a period of 24 hours:

As a more practical example of what Naam is showing if the OP went to Siam Commercial Bank website at http://www.scb.co.th/en/home and then clicked on the Quick links tab on the top right and then on Exchange rates it will bring up the latest posted exchange rates for scb. Depending when you look and the volatility of the market will be various tabs at different times of the day with different exchange rates.You can also look backwards at previous days. Not sure why but it is still showing Fridays (20 changes in the day) - is it a holiday today?

I normally use it as a check against what I can negotiate with the independent traders.

[Naam]

Not sure why but it is still showing Fridays (20 changes in the day) - is it a holiday today?

it is.

[Naam]

I've been to dinners with Thai-Chinese businessmen too. Probably they got a kick out of making you think that they were the Bilderberg Group.

how do i obtain an invitation? that would enable me to wear my Illuminati costume with a feathered hat and perhaps exchange some Dollars at a favourable Thai-Chinese-Business-Personal-Contacts-Rate?