Exchange Rate Confusion Explained When Preparing For Thai Financial Qualifications

[Kabula]

After reading many of the posts, it’s clear that many get confused with it comes to exchange rates, especially new expats. This is no surprise as exchange rate calculations can be a real mind twister from time to time for everyone. It’s important to understand that when the U.S. dollar or your home currency retreats vs. the THB, you need to transfer more of your home currency into a Thai bank for financial qualifications. If your home currency retreats vs the THB, and if you are transfering Thai baht to your home country, you are at an advantage. It may be a good time in this case to pay off home country bills or buy products from your home country.

I found when wiring money from the U.S. to Thailand I have my U.S. bank send U.S. dollars for a better exchange rate. I found that Kasikorn Bank exchange rates were always the best for wiring in U.S. dollars. It may be different for other foreign currencies. When wiring money from Thailand to the U.S., I request they send U.S. dollars for a better exchange rate. It’s important to understand that Thai banks that publish rates on the Internet are not wire rates! Always ask what the exchange rate is prior to wiring the money. Sometimes the exchange rate can be negotiated on larger sums.

It’s important for everyone that currently wants to apply for a retirement visa stamp or a retirement extension to read this content and the attachments. Especially, if they will be opting for the combination foreign income + Thai bank savings to qualify. They must follow their home country exchange -THB rate daily to prepare far in advance for their Immigration application day interview.

I like the XE currency exchange rate website when working on my laptop. You can find it here. http://www.xe.com/currencyconverter/#

When working on my Apple, I Pad, I use the XE application. The historical charts are important to examine.

I’ve lived in Thailand for 9 years and because of currency volatility in the past, many friends who did not do their financial research and prepare months in advance for their retirement extension financial qualifications were denied their retirement extension. They left the country after many years. This was a very sad situation for them and me, especially for seniors with no family and on a budget. Hopefully, this information will help you to prepare. It's harder now trying to estimate what the exchange rate will be in 3 months while funds are being seasoned on a retirement extension.

Attached is an example I prepared today in an Excel worksheet based upon US$-THB exchange rate. I chose the US$ rate because it’s presently the world currency. I used a common U.S. $, social security monthly payment x 12 months for the annual figure for the example. I then applied todays rate at the time I prepared this which was of 35.02, then, 30 and 24.54 rates (a possible 30% devaluation off todays rate) to depict how the retreating dollar or your own home currency can require a substantial increase in home funds to be deposited in a Thai bank to meet the combination, retirement financial qualifications.

I have recently read where posters are reporting that the US$ is strong. Let’s be clear, it’s not vs. the THB, and it's losing value against the THB. The US$ high last month, was 35.7599. Today it has retreated to 35.09 and dipped to 34.83 on a 3 month chart. When doing exchange rate calculations on large sums like 800,000, THB these dips can be a big concern for your bank savings, financial qualification estimation.

I’ve also seen where posters are not accurate when making statements regarding the strength of exchange rates, especially when readers have to rely on accurate information to prepare to qualify for visas.

Most of the world financial trend experts who have been spot on for many years predict the US$ will continue its devaluation along with many others if not most foreign currencies before year end.

In view of the foregoing, with the dollar slide from the last highs it’s important to understand that if you have to move money to a Thai bank to qualify for the combination option, it’s recommended to move the funds as soon as possible. As the US$ retreats, or your home currency you need more home money to fund your Thai bank account. As time passes, this could be dramatic and a huge surprise for many as the attached worksheet depicts. Those who wait may find they don’t qualify for an extension at application time.

Currently four countries have devalued their currency, so be sure to check frequently to see if your countries currency has been devalued, or your countries banks have done bank bail ins or gone to reverse interest rates.

Below is a US$-THB 3 month historical chart copied today confirming the current US$ retreat vs. the THB since the end of May of this year. The high was 35.75, and the low dip was 34.83 according to the information printed on the chart in the upper right corner. I believe this trend will continue with massive worldwide sell offs of U.S. Treasuries by many countries. Inflation prices don’t mean the products are getting more expensive, it means the dollar or your home currency is getting weaker.

[speedtripler]

just transfer in an extra 10% ........in case of "fluctuations"........

if it turns out to be more than enough invest in wisely on beer and women ....thread/

[Naam]

just transfer in an extra 10% ........in case of "fluctuations"........

if it turns out to be more than enough invest in wisely on beer and women ....thread/

an extra 10%

...and don't waste time on "historical" three-months charts as well as on useless academic comments

[Lefty]

just transfer in an extra 10% ........in case of "fluctuations"........

if it turns out to be more than enough invest in wisely on beer and women ....thread/

Put B800,000 in your bank and never worry about exchange rates again...

Lefty

[Suradit69]

... as exchange rate calculations can be a real mind twister from time to time for everyone.

Some people can turn anything into a real mind twister, especially if they over-think it.

I'm pretty sure most people can grasp the idea that if the dollar or pound or Euro is up, you get more baht and vice versa.

If you're regularly bringing in money for living expenses in Thailand, it would be an expensive waste of time to then send money back to your home country to pay down regular bills just because the exchange rate has turned favorable for you. Just leave more in your home bank account.

If you're using embassy certified annual income ( and being honest about it), it doesn't matter how much money you bring into Thailand to meet the requirements. Immigrations will just calculate your monthly income based on the embassy certificate and the exchange rate at the time you apply for an extension. It involves basic multiplication. You don't actually need to be bringing in the Baht 65,000 or Baht 40,000 every month and (again if you're being honest) you won't be able to fiddle with the amount of your certified income.

If you're using the money in the bank approach, then look at your bank balance. If it's over baht 800,000 or baht 400,000, then you're good to go.

As others have suggested, plan on needing 10% to 20% extra and then get on with your life. If you're worried about being short or over the minimum by a few satang, then you have more important things to worry about.

[1FinickyOne]

It is difficult to imagine that people living in a foreign country do not understand about currency fluctuations... just as it is difficult to imagine that someone thinks they can play this market... just transfer your money early and make sure that you reach the 800,000 baht figure in your Thai bank before the 3 month deadline...

not a twister at all really...

[Kabula]

... as exchange rate calculations can be a real mind twister from time to time for everyone.

Some people can turn anything into a real mind twister, especially if they over-think it.

I'm pretty sure most people can grasp the idea that if the dollar or pound or Euro is up, you get more baht and vice versa.

If you're regularly bringing in money for living expenses in Thailand, it would be an expensive waste of time to then send money back to your home country to pay down regular bills just because the exchange rate has turned favorable for you. Just leave more in your home bank account.

If you're using embassy certified annual income ( and being honest about it), it doesn't matter how much money you bring into Thailand to meet the requirements. Immigrations will just calculate your monthly income based on the embassy certificate and the exchange rate at the time you apply for an extension. It involves basic multiplication. You don't actually need to be bringing in the Baht 65,000 or Baht 40,000 every month and (again if you're being honest) you won't be able to fiddle with the amount of your certified income.

If you're using the money in the bank approach, then look at your bank balance. If it's over baht 800,000 or baht 400,000, then you're good to go.

As others have suggested, plan on needing 10% to 20% extra and then get on with your life. If you're worried about being short or over the minimum by a few satang, then you have more important things to worry about.

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

Not true. The reason I posted this is because in my 9 years here, most make many mistakes in their calculations and many friends, as I mentioned, could not get a retirement extension because they did not plan ahead and prior to 3 months did not figure in an estimation reduction in their home currency exchange rate.

Furthermore, most can't afford the 800,000, especially now. So they have some hard decisions to make, especially seniors.

Many tourists come here for a month and their first time abroad. They don't have a grip on calculation exchange rates, incoming and outgoing transfers.

Many don't realize the exchange rates can be negotiated on larger sums.

Obiously, you don't realize the world financial system is in crisis now. Four countries have devalued their currency. World bank stocks are bleeding. Many more countries will be devaluating their currencies. That is why I posted an Excel worksheet to demonstrate why it is important to bring money in now before it gets devaluated and if it does, now much more one has to transfer in to meet the 800,000 requirement on their retirement extension.

Just because you have 800,000 + THB in a Thai bank there is something else that can create problems, a THB devaluation! I'm not saying it will happen, but is something to follow and keep in mind.

I have seen many poster's remarks here and many don't have a clue to world economics, and what their home exchange rate is vs THB current rate. World banking stock sells offs and a lot more.

[Kabula]

It is difficult to imagine that people living in a foreign country do not understand about currency fluctuations... just as it is difficult to imagine that someone thinks they can play this market... just transfer your money early and make sure that you reach the 800,000 baht figure in your Thai bank before the 3 month deadline...

not a twister at all really...

Not true, follow these posts and see many don't have a clue about world economics, nor their own home current exchange rate vs THB. Many first time tourists don't even think about it and some stay here for months.

Billions of US$ and world currencies are made by traders who short the market in major retreats. That is how Kennedy Sr. made his money initially when he was a banker. The traders that bought gold 20 years ago played it right and are smiling now. Day traders can't play the market now and expect profit, I agree.

Many can't afford the 800,000 THB, especially seniors.

Just because you have 800,000 in a Thai bank to qualify, there is always a risk of a THB devaluation as many countries, 4 currently have already devaluated their currency. Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months. Food prices there are going through the roof, because the dollar is worth less, not from inflation. Wait and see...

I provided enough information to all to evaluate their personal situation.

The entire world financial situation is twisting downward and for those who have normalcy bias, they better start doing their own research and start planning ahead.

[gandalf12]

It is difficult to imagine that people living in a foreign country do not understand about currency fluctuations... just as it is difficult to imagine that someone thinks they can play this market... just transfer your money early and make sure that you reach the 800,000 baht figure in your Thai bank before the 3 month deadline...

not a twister at all really...

I played it years ago and ended up making enough to buy a house which I did but it was a one off thing.

[speedtripler]

just transfer in an extra 10% ........in case of "fluctuations"........

if it turns out to be more than enough invest in wisely on beer and women ....thread/

an extra 10%

...and don't waste time on "historical" three-months charts as well as on useless academic comments

10% of 800k is still chicken feed averaged out over a year

i would suggest people who need to worry about this need to make other more important alterations in their lives .......

a bit fine less fine wine and imported steaks should be enough lol

[gdgbb]

A long-winded, condescending way for the OP to suggest he knows be than the rest of Thaivisa readers. He even says that it is important that everyone reads the content of his post and it's attachments! He may think that "it is important", I doubt that anyone else will. Graphs and spreadsheets would be quite impressive to some if he didn't seem to suggest that retirees here are bit slow. It's safe to say that anyone transferring money to Thailand to qualify for a cash based extension is going to check the exchange rate first. Who wouldn't do that?

So here's a precis of the OP, "If you want a certain amount of money in a Thai bank account check the exchange rate so that you know the amount of foreign currency to send."

It doesn't matter which exchange rate website is used, xe.com or otherwise, as the OP stated himself, those rates are not wire rates! In reality it doesn't matter, TT rates are as near as to make little difference. Nor is it important that we know he is using his Apple, I Pad, the exchange rates shown will be the same whatever equipment is used.

[Kabula]

A long-winded, condescending way for the OP to suggest he knows be than the rest of Thaivisa readers. He even says that it is important that everyone reads the content of his post and it's attachments! He may think that "it is important", I doubt that anyone else will. Graphs and spreadsheets would be quite impressive to some if he didn't seem to suggest that retirees here are bit slow. It's safe to say that anyone transferring money to Thailand to qualify for a cash based extension is going to check the exchange rate first. Who wouldn't do that?

So here's a precis of the OP, "If you want a certain amount of money in a Thai bank account check the exchange rate so that you know the amount of foreign currency to send."

It doesn't matter which exchange rate website is used, xe.com or otherwise, as the OP stated himself, those rates are not wire rates! In reality it doesn't matter, TT rates are as near as to make little difference. Nor is it important that we know he is using his Apple, I Pad, the exchange rates shown will be the same whatever equipment is used.

Caution....Troll

[Naam]

Currently four countries have devalued their currency, so be sure to check frequently to see if your countries currency has been devalued, or your countries banks have done bank bail ins or gone to reverse interest rates.

caution... clown

[Naam]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

[Kabula]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

[Naam]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

[topt]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

Really? Who says this -

"Just because you have 800,000 in a Thai bank to qualify, there is always a risk of a THB devaluation......." - what difference would it make if it was devalued if your money is here in Thai baht?????

And this in your long winded opening post "It’s important to understand that Thai banks that publish rates on the Internet are not wire rates! " - Wrong! Check out SCB exchange rates online which are updated many times per day showing the TT rate as one example http://www.scb.co.th/scb_api/index.jsp

XE rates normally give only a mid market rate so not as accurate as you suggest....

Were you a bank teller?

[12DrinkMore]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

Really? Who says this -

"Just because you have 800,000 in a Thai bank to qualify, there is always a risk of a THB devaluation......." - what difference would it make if it was devalued if your money is here in Thai baht?????

And this in your long winded opening post "It’s important to understand that Thai banks that publish rates on the Internet are not wire rates! " - Wrong! Check out SCB exchange rates online which are updated many times per day showing the TT rate as one example http://www.scb.co.th/scb_api/index.jsp

XE rates normally give only a mid market rate so not as accurate as you suggest....

Were you a bank teller?

Fortune teller.

[1FinickyOne]

Hi Ka-bank-ula -

well, assuming you are operating from the best of motives, to help the extremely, overly dim, I still think that even the least sophisticated of investors here understand exchange rates as they need to use Thai currency daily and they must see that rates fluctuate, which does not mean that many don't get caught by surprise if a large devaluation... but these type of people rarely have enough money that it matters or that they can do anything about it, like buy hedges against it...

But, really, a 33% devaluation of the dollar by years end? If anything, the odds of another rate hike pushing it higher is more likely, but that is why they have markets - if you really believe your position you must have a huge short.

[overherebc]

Hi Ka-bank-ula -

well, assuming you are operating from the best of motives, to help the extremely, overly dim, I still think that even the least sophisticated of investors here understand exchange rates as they need to use Thai currency daily and they must see that rates fluctuate, which does not mean that many don't get caught by surprise if a large devaluation... but these type of people rarely have enough money that it matters or that they can do anything about it, like buy hedges against it...

But, really, a 33% devaluation of the dollar by years end? If anything, the odds of another rate hike pushing it higher is more likely, but that is why they have markets - if you really believe your position you must have a huge short.

Hedges are ok but a flower border looks nicer.

[Kabula]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

Really? Who says this -

"Just because you have 800,000 in a Thai bank to qualify, there is always a risk of a THB devaluation......." - what difference would it make if it was devalued if your money is here in Thai baht?????

And this in your long winded opening post "Its important to understand that Thai banks that publish rates on the Internet are not wire rates! " - Wrong! Check out SCB exchange rates online which are updated many times per day showing the TT rate as one example http://www.scb.co.th/scb_api/index.jsp

XE rates normally give only a mid market rate so not as accurate as you suggest....

Were you a bank teller?

To answer your question, I was a Senior Partner of a bank heading up the Real Estate Development Division. Prior to that,

I practiced law for 25 years in my own firm I founded. I also owned and was licensed for an Insurance Adjustment Co., a

Private Investigation Agency and Information Agency for 23 years. My firm was recommended by the A.M Best Co. for 11 years.

For many years I was also a professional, stock trader. I mentored with a friend who had a seat on the Chicago Commodities

Exchange. I have spend thousands of hours researching worldwide financial trends for over 20 years. The information gathered

made me successful in all businesses and trading mentioned.

My clients were three Provincial Provinces of Canada, most automobile, tire, motorcycle manufacturers in the world. Our

Insurance Clients were 300 Insurance Companies, self-insurers, both foreign and domestic. I was also in the U.S. Military

with an elevated security clearance, and a war veteran.

I'm curious what all the Trolls have accomplished?

I have to wonder what kind of lives Trolls have had? People who posts deliberately provocative messages to this forum with

the intention of causing maximum disruption and argument have to have sad, pathetic, boring lives. Perhaps it's time to

spend more quality time in the outdoors and clear your heads.

Dont be surprised if one day one of your enemies with a large financial stack, gets disgusted with bad people and

files a civil complaint to get the libel allegation into discovery.

All, records would be secured under Subpoena, so the Defendants can be examined under oath for three hours to determine

extensive background history, passport examination, prior civil and criminal history, mental history, and more. I personally

wouldnt waste my time as there is no money in it.

I have to wonder why the moderators allow this disruptive nonsense, while Trolls ruin the purpose of the forum and give,

Thai Visa a bad image. This disruption distracts from information that can help people and YOU!

Be sure to keep hard copies of my informative post and then review it in two to three months. Obviously, most Trolls

never read most of it. Are you prepared?

Kabula, Esquire

[Naam]

below a chart of the benchmark US Treasury maturity 10 Years which clearly proves that the claim

Most countries have been selling off U.S. Treasuries for many months.

can only originate from somebody who has not the faintest idea as far as UST are concerned.

Your Honour, Ladies and Gentlemen of the Jury...

...i rest my case.

signed:

Naam

Senior Partner, Esquire of Mrs Naam

and

Chairman of the Sideboard (the one located in our Dining Room)

[Pappap]

I thought that immigration uses the exchange rate quoted by one of the major Thai banks, i.e. Bangkok Bank, Kasikorn etc which are usually a little lower than xe, they quote the mid range? Also if you are using the combination method and have insufficient funds at the time of application ( 3 months seasoned) because of the drop in your currency, and one presumes you will be aware of this prior to application day, surely you can top up with more funds go to Penang or wherever, where it doesnt need to be seasoned for 3 months, and start the whole process over again? Then again some immigration's here can be helpful as well......Also as mentioned if the 800k is already in the bank makes not a jot of difference what happens to the currency, presuming you have enough to live on..seems a bit doom and gloomish to me...

[biplanebluey]

just transfer in an extra 10% ........in case of "fluctuations"........

if it turns out to be more than enough invest in wisely on beer and women ....thread/

Put B800,000 in your bank and never worry about exchange rates again...

Lefty

I have been doing that for the last 9 yrs and no trouble-----Why do some people make such a big problem which something with a simple solution as stated------- my big problem is where my next girl is coming from

[biplanebluey]

To answer your question, I was a Senior Partner of a bank heading up the Real Estate Development Division. Prior to that,

I practiced law for 25 years in my own firm I founded. I also owned and was licensed for an Insurance Adjustment Co., a

Private Investigation Agency and Information Agency for 23 years. My firm was recommended by the A.M Best Co. for 11 years.

For many years I was also a professional, stock trader. I mentored with a friend who had a seat on the Chicago Commodities

Exchange. I have spend thousands of hours researching worldwide financial trends for over 20 years. The information gathered

made me successful in all businesses and trading mentioned.

My clients were three Provincial Provinces of Canada, most automobile, tire, motorcycle manufacturers in the world. Our

Insurance Clients were 300 Insurance Companies, self-insurers, both foreign and domestic. I was also in the U.S. Military

with an elevated security clearance, and a war veteran.

I'm curious what all the Trolls have accomplished?

I have to wonder what kind of lives Trolls have had? People who posts deliberately provocative messages to this forum with

the intention of causing maximum disruption and argument have to have sad, pathetic, boring lives. Perhaps it's time to

spend more quality time in the outdoors and clear your heads.

Dont be surprised if one day one of your enemies with a large financial stack, gets disgusted with bad people and

files a civil complaint to get the libel allegation into discovery.

All, records would be secured under Subpoena, so the Defendants can be examined under oath for three hours to determine

extensive background history, passport examination, prior civil and criminal history, mental history, and more. I personally

wouldnt waste my time as there is no money in it.

I have to wonder why the moderators allow this disruptive nonsense, while Trolls ruin the purpose of the forum and give,

Thai Visa a bad image. This disruption distracts from information that can help people and YOU!

Be sure to keep hard copies of my informative post and then review it in two to three months. Obviously, most Trolls

never read most of it. Are you prepared?

Kabula, Esquire

"I am curious what all the trolls have accomplished ?"------------- Well all I can say is ,if you get your head out of the money sack you will find there is a wonderful world of fun spreading from your doorstep to thousands of miles in all directions--- my problem is life is too short to experience it all,but I am getting my share------- And I am happy

[Kabula]

below a chart of the benchmark US Treasury maturity 10 Years which clearly proves that the claim

Most countries have been selling off U.S. Treasuries for many months.

can only originate from somebody who has not the faintest idea as far as UST are concerned.

UST 10Y.jpg

Your Honour, Ladies and Gentlemen of the Jury...

...i rest my case.

signed:

Naam

Senior Partner, Esquire of Mrs Naam

and

Chairman of the Sideboard (the one located in our Dining Room)

The millions worldwide who followed the published technicals in 2008, did what you did and when the transfer of wealth took place most lost their life savings and homes after the crash. Just because it's in writing doesn't make it true. Very similar to your trolling, Stock money market accounts are not insured in the U.S. Gold is the counterweight to the US$. It is now in a bull market and when it passes 1400, this week perhaps, the US$ will accelerate it's retreat. Metals will then surge vertical. Wait and see before you respond.

[Naam]

below a chart of the benchmark US Treasury maturity 10 Years which clearly proves that the claim

Most countries have been selling off U.S. Treasuries for many months.

can only originate from somebody who has not the faintest idea as far as UST are concerned.

UST 10Y.jpg

Your Honour, Ladies and Gentlemen of the Jury...

...i rest my case.

signed:

Naam

Senior Partner, Esquire of Mrs Naam

and

Chairman of the Sideboard (the one located in our Dining Room)

The millions worldwide who followed the published technicals in 2008, did what you did and when the transfer of wealth took place most lost their life savings and homes after the crash. Just because it's in writing doesn't make it true. Very similar to your trolling, Stock money market accounts are not insured in the U.S. Gold is the counterweight to the US$. It is now in a bull market and when it passes 1400, this week perhaps, the US$ will accelerate it's retreat. Metals will then surge vertical. Wait and see before you respond.

why don't you respond to the UST "topic" instead of coming up with irrelevant yada yada to divert from your ridiculous claims?

here's the 5 year USD index. where is the "accelerated retreat"? you are calling other contributors who present facts trolls?

[puck2]

Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months.

caution... big clown

Caution....troll, not a big clown, a retired banker!

Here some excerpts of your comments

"Attached is an example I prepared today in an Excel worksheet based upon US$-THB exchange rate. <............> I then applied todays rate at the time I prepared this which was of 35.02, then, 30 and 24.54 rates (a possible 30% devaluation off todays rate) to depict how the retreating dollar or your own home currency can require a substantial increase in home funds to be deposited in a Thai bank to meet the combination, retirement financial qualifications."

"Don't be surprised when the US$ gets devalued by a 1/3 before year end. Most countries have been selling off U.S. Treasuries for many months."

"Just because you have 800,000 + THB in a Thai bank there is something else that can create problems, a THB devaluation!"

When reading this I thought you were a banker of ABSURDISTAN, having a certificate of the famous Trump University, learning how to bankrupt a company.

[Naam]

banker of ABSURDISTAN

[fletchsmile]

It’s important for everyone that currently wants to apply for a retirement visa stamp or a retirement extension to read this content and the attachments.

I stick THB 400k in a bank account for a marriage visa extension. Does that mean I only need to read half of the initial post?