Exchange Money Before/after?

[Plucky]

Currently got a strange question. I am transferring a small sum from UK to Thailand as I have transferred money to many countries before. But this time they asked me whether I want the money sending in Thai baht already or UK sterling which will get converted the other end in my Thai bank account.

I asked them on the phone which would work out better and said they couldn't answer as the exchange guys aren't in till Monday and they haven't got any figures.

Anybody done this before and know which is the cheapest way to do it? Have First Direct exchange the sum into Thai baht or just send it as sterling to be exchanged at my Thai bank account?

[ballbreaker]

Send GBP and have the conversion to baht done in Thailand. Better exchange rate in Thailand.

[Lite Beer]

Send it in Sterling .

You will get a much better rate.

[Plucky]

Send GBP and have the conversion to baht done in Thailand. Better exchange rate in Thailand.

Will this get me the best exchange rate though. What makes you think this is the best way?

[wamberal]

It gets you the best exchange rate. Believe it, or not. Up to you.

[Plucky]

It gets you the best exchange rate. Believe it, or not. Up to you.

Many thanks for the help. Apologies if my question sounded a bit off was just wondering why etc. But I am guessing you know from previous experience.

[seasia]

Hi

Transfer in UK £.

I did so recently but happened to notice the potential exchange rate had it been converted to baht before transfer, would have been worse off converting to baht in the UK before transfer.

[daftpunker]

After would be better make sure u egt what u payed for.oops i didnt read this thread properly.

[IMA_FARANG]

Almost always when transfering money into a Thai bank you should send the funds as the foriegn currency and do the conversion in Thailand.

That's almost always the way to get the best exchange rate at the Thai end.

So if you're sending GBP send it as pounds to Thailand and have it converted to Thai Baht by whatever bank you use here in Thailand.

Of course, either way, there will be conversion fees....but you'll have to pay that anyhow.

But, as I said, you'll get a better exchange rate by sending your funds to thailand as your home country currency...and let the bank convert it here in Thailand.

[SimonD]

I believe the reason is that the Baht has two exchange rates:

1. An onshore rate where the money is converted into baht in Thailand.

2. An offshore rate where the foreign currency is converted into baht before sending.

The offshore exchange rate is worse than the onshore rate although the wiki article on the Thai Baht doesn't agree:

Exchange rates

The Bank of Thailand adopted a series of exchange controls on December 19, 2006, which resulted in a significant divergence between offshore and onshore exchange rates, with spreads of up to 10% between the two markets. Controls were broadly lifted on March 3, 2008 and there is now no significant difference between offshore and onshore exchange rates.

I might be wrong but that is my understanding. This being Thaivisa I'm sure some kind soul will be along to correct me...

[topt]

It gets you the best exchange rate. Believe it, or not. Up to you.

Many thanks for the help. Apologies if my question sounded a bit off was just wondering why etc. But I am guessing you know from previous experience.

I think it is because UK banks take a heftier commission on the exchamge compared to the way the Thai banks work - maybe becuase they do not do so much business in baht but I am only guessing at that.