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Where Can I Hold Thb Outside Thailand?


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I would like to buy THB with AUD because the rate is good now and there is a high possibility that I need THB in the future.

In case I don't need the THB I would easily like to change them back however, so I do not want to send AUD to my Thai account because it would be hard to send them back out of Thailand.

Is there any foreign bank that offers a THB denominated account outside of Thailand?

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any multinational bank located in any place of this planet will allow you to hold Thai Baht, no need for a FOREX broker.

caveat!

the Bank of Thailand has imposed the following restrictions:

Dear client Khun Naam,

Further to the Bank of Thailand’s Measure No. 33/2003 (Additional Measure to Prevent Thai Baht Speculation), which came into effect in October 2003, XYZ Bank, Singapore Branch is subject to restrictions affecting its holdings of Thai Baht currency. These include the following:

Maintaining THB accounts in Thailand for settlement purposes only, where settlement means the settlement of securities transactions and cash payment transactions. The exception is for deposits of a tenor of at least 6 months or more.

Forfeiture of credit interest on its accounts (other than deposits of a tenor of at least 6 months or more)

Ensuring that the aggregated end of day balances for cash accounts with all financial institutions in Thailand do not exceed THB 300 million (the “Daily THB Limit”)

Imposition of deposit charge on THB account balances.

In relation to the Daily THB Limit, XYZ Bank, Singapore Branch will be required to adjust its Thai Baht balances in all its client accounts to be compliant with the permitted level as determined by the Thai authorities on a daily basis. As such accounts may include balances in Thai Baht held on your behalf, it is critical that we are able to adjust client THB balances to ensure compliance.

Accordingly, at any time that you are holding a long position in THB, we reserve the right in our absolute discretion and without prior notice to you to convert your holding of THB, in whole or part, into United States dollars at the prevailing spot rate.

Yours truly,

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the alternative would be to hold funds offshore in sing dollars. the sing and the baht track each other pretty closely ,its easy to open such an a/c and you can trasfer to Thailand and convert when you need baht.

Thank you, I already have an account in SGD and will consider this, I was not aware that the currencies track each other pretty closely.

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I was not aware that the currencies track each other pretty closely.

You weren't aware of it because it's simply not true:

http://www.xe.com/cu...to=THB&view=10Y

The correlation is not perfect , and, as the chart shows it broke down in 2007, when sgd was weak in the early stages of the global financial crisis. But for most of the time since the asian crisis 1998 sgd/thb has traded in the range 23 to 25 and actualy for much of this time in a range 23.5 to 24.IMHO this (less than 10% range) is pretty tight for a currency pair. And, ahead of further Asean integration, it is reasonable to expect this correlation to continue.

In my business we have come to regard sgd as the defacto core currency for the SE asia region, we remit profits from Thailand into sgd and hold deposits for the Thai business, other than immediate cap-ex/working capital requirements in sgd rather than in baht. So far its worked fine for us and i know others who operate in the same way.

If anything, the risk to this strategy, in my opinion, is that over the medium/long term from here, the sgd trends a little stronger relative to the baht. But that is something that would benefit the op if he held future Thai expenditure in sgd.

Edited by wordchild
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If you don't need Thai Baht for business purposses, I don't see the point in holding Baht! There is a good chance that the baht will weeken further against major currencies.

Unless you time it right you may find you are holding onto them for longer than you want. I think the reason why some have suggested buying through a forex company is because you would get a better rate of exchange than from a bank. Which is something else you need to add to your calculations.

You will loose 2-4% of your funds making the exchange, + any bank fees making the transfer, depending on you're method. Times that by two because you will pay the same sort of costs changing back to AUD. So you can see that you will loose 4-8% just in conversions.

Now ask yourself, Do you really think the Baht will weeken by 4-8% that's not taking inflation into account either. If it goes the other way and it strengthens by 4-8% well I hope you see what I'm trying to say.

The baht is not the currency you want to hold long term unless you live here, and then only what you need for a set period of time. You would be better off keeping it in AUD, the interest rate will be better than what you would get on the Baht in any case.

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I recently purchased USD from AUD (i am based in Sydney). I used a local office of KVB http://www.kvbkunlun.com/en/html/product/forex/personal.aspx. I used the second option: Currency Safety Box. Bascially it is a cheap hedging strategy because like you i believe aud will slide against both I deposited aud into their account and when i was ready gave them a call and was given a quote and changed the money. They continue to hold onto it in this 'safety box' it is an electronic trust ac. when i wish i can convert the money back to aud. The cost was 3 basis points (100 basis points is 1%) but that was for 100k so it will be more for 30k but still much cheaper than any bank. Maximum duration for holiding money there is 6 months after that it goes back to aud but then i can just tell them to buy usd again ie same day. very low cost alternative. I am not sure about transffering the funds to an THB a/c , i know it is possible however they charge more for that-forget how much either 0.25% or 1%. give them a call if you are melb or syd.

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