What to do with thai baht?

[Gik]

With current exchange rate (35 baht/usd but who knows if it will not become 45 baht/usd) what might be a good way to reduce the loss if a person has some savings in thb? I was thinking about opening USD account but had some kind of trouble with banks do not want to open or asking for work permit or listing some very high fees on deposit/withdraw.

[Brit_Doggie]

Swings and roundabouts at the moment we on a highish roll enjoy it whilst you can but don't tell the thai gf/wife.

[WorkingTourist]

How is a more expensive USD automatically a loss if you live in Thailand?

[Naam]

How is a more expensive USD automatically a loss if you live in Thailand?

he thinks in USD, does his "accounting" in USD and therefore arrives at a perceived loss.

to the OP:

if you are willing to forego the peanuts amount of interest you get in THB then change your Baht into cash USD and keep them under the mattress. that is if you are expecting a further Baht weakening. you are even better off than opening a foreign currency account which does not bear interest but costs fees.

[orpheus454]

How is a more expensive USD automatically a loss if you live in Thailand?

he thinks in USD, does his "accounting" in USD and therefore arrives at a perceived loss.

to the OP:

if you are willing to forego the peanuts amount of interest you get in THB then change your Baht into cash USD and keep them under the mattress. that is if you are expecting a further Baht weakening. you are even better off than opening a foreign currency account which does not bear interest but costs fees.

Not good advice for bed wetters...

[Emster23]

What to do with thai baht?

spend it.

Take some home to give out to nieces and nephews when you visit.

[SheungWan]

What sort of ball park savings figures are we talking about here?

[does]

If you have go so many baht and a monthly pension check so that you are unlikely to run out of cash, and plan to live out your years in Thailand, don't worry, be happy.

If you plan to leave Thailand at some point and you are talking about a 5 or six figure amount, put half you assets in dollars or other foreign currency.

[Berkshire]

So the OP has Thai baht, but it's currently not in a bank. Where is it exactly, underneath his mattress? Serious question.

[Berkshire]

So the OP has Thai baht, but it's currently not in a bank. Where is it exactly, underneath his mattress? Serious question.

Might have misread...nevermind.

[Nice Boyd]

What will happen when USA raises interest rates, Will USD go up or down, Thx

[Linzz]

What will happen when USA raises interest rates, Will USD go up or down, Thx

The USD will go up and will attract money outside the USA to obtain a better interest rate than their own currency therefore the USD becomes more valuable because people are buying it

[1FinickyOne]

Hi Boyd - it would be expected that US Dollars will rise with interest rates as the dollar becomes more valuable…

As to what to do with baht - if you are playing international finance you should be aware of fluctuations - no? I don't think you would be worried if it were the other way round.

[Nice Boyd]

Hi Boyd - it would be expected that US Dollars will rise with interest rates as the dollar becomes more valuable…

As to what to do with baht - if you are playing international finance you should be aware of fluctuations - no? I don't think you would be worried if it were the other way round.

Thank You , Ken

[HooHaa]

your baht is worth the same as it always was unless you plan to spend it internationally.

[Linzz]

With the U.S. Federal Reserve poised to hike interest rates as early as next month, the dollar will rise in the coming year, but by how much will depend on the course of monetary policy, a Reuters poll found.

I think sell your THB and buy USD before next month, Your USD will then have more value so you can buy back more THB with it if you need to live in Thailand. If the USD rises it will mean most other currencies will drop including the THB because it is a floating currency

I think that's how it works but get a second opinion, I am not a financial advisor

[smotherb]

<snip - inappropriate post removed>

You can always hire some sweet young Thai girl to do that and more for you. Spend it foolishly, it will feel better.

However, the devaluation of the baht just reinforces my position of not bringing any more money into Thailand than I can consume now.

[JGV]

Surely if you are into making profit out of currency fluctuation

Buy baht now and sell it later back to dollars when the rate to dollar drops

[TheWizardofRnR]

Yes we all do well . How High Will It Go , any well informed folks have an idea! , (until some people raise their prices )

, I get US$ for retirement , so I am doing good for now , up allot from 5 -6 years ago...it all helps !

[Pinot]

The current price of the baht or the USD already reflects the economic uncertainties. If someone knew where the currencies were going they would be trading the currencies on the forex market. They don't because NO one knows what the next step is with any certainties.

It's like the current cost of oil. It is what it is. A barrel of oil is worth X today. If people knew the price tomorrow, than oil would reflect that today but they don't.

What I'm trying to say is. Stay with the baht because it what it is. If you knew the USD was going to be 35 six months ago people would have bailed out of the baht then. The market is never wrong. On any given day, that's what a barrel of oil or the Thai baht is worth. Going to USD from the baht now, makes no sense unless you know something every currency trader in the world doesn't know.

[SGX]

Makes no difference what the rate home currency you live and spend is in.

[natway09]

If you have an overall look at the Baht against a barrel of currencies it is still doing well

The USD is havung a bit of a resurgence internationally.

Give it 3 years & I believe you will be back. Every dog has its day

[mikiea]

hmmmm...... i just think you like to talk about yourself, it cannot be, or should i say. ... you cannot be serious.

[lostoday]

If you think gold is going up you can buy futures from gold stores.

[WorkingTourist]

The current price of the baht or the USD already reflects the economic uncertainties. If someone knew where the currencies were going they would be trading the currencies on the forex market. They don't because NO one knows what the next step is with any certainties.

It's like the current cost of oil. It is what it is. A barrel of oil is worth X today. If people knew the price tomorrow, than oil would reflect that today but they don't.

What I'm trying to say is. Stay with the baht because it what it is. If you knew the USD was going to be 35 six months ago people would have bailed out of the baht then. The market is never wrong. On any given day, that's what a barrel of oil or the Thai baht is worth. Going to USD from the baht now, makes no sense unless you know something every currency trader in the world doesn't know.

Agree 100%, often shortened as: “What everybody knows, is already in the price”.

You often hear “analysts” proclaim that X will go up in price when Y happens, and it’s not unusual the opposite actually happens, as another adage says “buy on the rumor, sell on the news”. Translated to the current situation, people are moving to USD because they expect it will go up in price (once interests are raised), this new demand makes it go up in price. Once the interests are raised, the USD has already found its new price, and that’s when those who moved to USD wants to take their profit and sell their USD, causing demand to actually go down…

Of course as soon as a pattern emerges, someone will try to make money from understanding it, and thus break the pattern. E.g. if my above analysis was all there was to it, then the right thing to do now is to short the USD, but there are probably already people doing that, which means they’ll have to buy USD at some point in the future…

[chingmai331]

Here is the full story. At least a comprehensive analysis of the value of the US dollar, the effects on the world and what happens to other currencies, including the Thai baht. Take your time reading this: it's not Mickey Mouse.

http://www.schwab.com/public/schwab/nn/articles/What-Does-the-Dollars-Strength-Mean-for-Investors?cmp=em-QYB

[Linzz]

Surely if you are into making profit out of currency fluctuation

Buy baht now and sell it later back to dollars when the rate to dollar drops

you might be waiting a long time

[Linzz]

The current price of the baht or the USD already reflects the economic uncertainties. If someone knew where the currencies were going they would be trading the currencies on the forex market. They don't because NO one knows what the next step is with any certainties.

It's like the current cost of oil. It is what it is. A barrel of oil is worth X today. If people knew the price tomorrow, than oil would reflect that today but they don't.

What I'm trying to say is. Stay with the baht because it what it is. If you knew the USD was going to be 35 six months ago people would have bailed out of the baht then. The market is never wrong. On any given day, that's what a barrel of oil or the Thai baht is worth. Going to USD from the baht now, makes no sense unless you know something every currency trader in the world doesn't know.

Agree 100%, often shortened as: “What everybody knows, is already in the price”.

You often hear “analysts” proclaim that X will go up in price when Y happens, and it’s not unusual the opposite actually happens, as another adage says “buy on the rumor, sell on the news”. Translated to the current situation, people are moving to USD because they expect it will go up in price (once interests are raised), this new demand makes it go up in price. Once the interests are raised, the USD has already found its new price, and that’s when those who moved to USD wants to take their profit and sell their USD, causing demand to actually go down…

Of course as soon as a pattern emerges, someone will try to make money from understanding it, and thus break the pattern. E.g. if my above analysis was all there was to it, then the right thing to do now is to short the USD, but there are probably already people doing that, which means they’ll have to buy USD at some point in the future…

Why would you short the USD now when the general consensus is that there will be a rate hike in September and another in December? While there is some carry up anticipation, it is the rate set by the Central bank (Fed) that seals the deal and causes the $ to rise because it attracts a higher investment interest rate return which makes it more sought after. Forex traders will bring it down again when they take their profits for sure, but you would lose money definitely if you short against any possibility of the rate going up in the immediate term.

Edited August 6, 2015 by Linzz

[Naam]

when every taxi driver and his mother-in-law think there's going to be a rate hike in september then most probably... there won't be any

[MyFriend You]

your baht is worth the same as it always was unless you plan to spend it internationally.

Which I have been saying for 30 years or so - that 3 baht bag of Cha Dum Yen will still cost you 3 baht doesn' matter what the exchange rate is...........if you live in Thailand, enjoy the high exchange rate, when I first came here the baht was 20 for a $1.......but we lived well on a thousand $'s a month.