Exchange rate,How does it work?

[The Loop]

I always keep an eye on the current exchange rate for Thai baht(THB) to Australiand dollar(AUD),on some internet sites.

Just recently it has hit a 10 month high.

The official sites are quoting about 28.25 THB to 1 AUD.

Yet when i go to a bank or ATM in Patong i get 30.25 THB to 1 AUD.

I ain`t complaining,but,how the hell does that work?

[MrDK]

The rate you see on the Internet is likely the offshore rate and when you withdraw from an ATM in LOS you are getting the onshore rate, which lately has been known to be 10% higher.

You may want to look-up the rate at Bangkok Bank: FX Rates (link courtesy of K2).

[K2]

You want the short or long version ??

OK ... short version (I did write about this before but hey this is the short version).

Offshore interest rates are ~10% higher than onshore rates (due to junta imposing withholding tax on speculative foreign investment).

Since offshore rates are higher = stronger THB offshore.

Low onshore interest rate = weaker THB onshore (inside Thailand).

SO ... change ALL your money when you get to Thailand (and help bleed the central banks reserves ... this nonsense wont last forever - chances are new Gov if elected will sort this farcical mess out).

[The Loop]

Thanks fellas,it`s a little more complicated than i thought.

Most financial institutions usually find a way to "shrink" the amount rather than "add" to it.

I`ll gladly take my extra 10%.

Should get me an extra few beers.

[dizbuster]

Originally Posted by The Loop

Thanks fellas,it`s a little more complicated than i thought.

Most financial institutions usually find a way to "shrink" the amount rather than "add" to it.

I`ll gladly take my extra 10%.

Should get me an extra few beers.

If you see me again over the next 3 nights, let me know if you still have any questions on this type of thing, as like Kevin (K2) one of my previous jobs was as a Trader - I was a FX Trader for 5 years back i n the late 80's.

BTW good to meet/chat with you at Dingos Bar a few nights ago

[The Loop]

Originally Posted by dizbuster

BTW good to meet/chat with you at Dingos Bar a few nights ago

Sure to see you again before then Diz.

And sink even more ales.

Was a huge one last time at Dingo`s Tuesday night.

Don`t think Dennis and Trent are quite over it yet.

[Simbo]

I'll just have to work out a way of getting my cash into Thailand and converting it here (Dangling the bait to see who volunteers to 'look after' my hard earned dosh hehehehehe) Solly Hansum Man I lose in lanundry on way ovah. But tonite I go out mak mak wth my lottery win.

[kiro]

Originally Posted by K2

Offshore interest rates are ~10% higher than onshore rates (due to junta imposing withholding tax on speculative foreign investment).

Does anybody know what amount the withholding tax starts? There were so many changes I lost track. If I transfer one year cost of living over to an account with a thai bank will that fall under the withholding tax or is it only large sums that get "punished"?