Phuket Thailand - Exchange Rate thru ATM is it same as cash Window?

prestagea · #1 22-04-2008, 16:31

Ok so I am not exactly a newby to the Board but my question qualifies as a newbie question.

On previous trips I have mainly exchange cash at say a money exchange associated with a Thai bank. If I draw money from the ATM instead of exchanging cash at the window is the exchange rate exactly the same as advertised at the exchange window. I know their are other charges but not sure if the exchange rate is the same.

K2 · #2 22-04-2008, 16:48

Hard to say for certain as you wont know the rate your getting via the ATM in advance but the difference is likely to be pretty small on the rate itself - adding in the relevant bank charges from your (Aussie ?) bank may well make this not such a good option.

sledge038 · #3 22-04-2008, 19:24

the times i have withdrawn money from an ATM, from my aussie account...
i got a bad fx rate plus fees.
soooo,,,, no

dizbuster · #4 22-04-2008, 19:48

It differs from bank to bank.

What they do is add a "spread" or "margin" to the rate used between banks. For example, if we take AUD as an example and use a spread of 1%...

Let's say the current AUD/THB rate is 28.50, the they weight each side with 1%, i.e. 28.50 divided by 100 which = 0.285. They then add this to the sell THB/buy AUD side and subtract it from the sell AUD/buy THB side giving...

28.50 + 0.285 = 28.785 for customers wishing to buy AUD

28.50 - 0.285 = 28.215 for customers wishing to sell AUD

As you are a tourist and therefore only interested in selling AUD to buy THB, you get a rate of 28.215.

Banks apply this type of calculation to their exchange windows and also to their ATM machines, but the spread or margin used may be a difference percentage in both instances.

For example, if the margin is 1% for window transactions but 1.5% for ATM transactions, then the rates will differ...

28.50 - (1%) 0.285 = 28.215 for customers wishing to sell AUD at a window

28.50 - (1.5%) 0.4275 = 28.0725 for customers using the ATM.

When you withdraw Thai baht using an AUD account, you are effectively, "buying" the baht and "selling" AUD.

ThaiLearner · #5 23-04-2008, 01:08

Lots of Info there DIZ but i think he means no you won't

banditx · #6 23-04-2008, 03:27

Don't know about AUD but with sterling I got a much better rate just changing cash. For cash the exchange rate was £1 = 62 THB, by the time I paid the fees charged by my bank the ATM exchange rate was £1 = 59 THB.

JJJ28 · #7 23-04-2008, 04:55

I usually find that changing cash is on average a .3 better FX rate...

Hope this helps!

dizbuster · #8 23-04-2008, 07:55

Quote:

Originally Posted by ThaiLearner

Lots of Info there DIZ but i think he means no you won't

You're right, I was just trying to explain how it works in the background. Most cards I use apply a margin of 1.125% plus a fee (with a minimum level). Windows can operate on a much smaller margin and still make a profit.

prestagea · #9 23-04-2008, 15:56

Thanks guys. We usually take a pocket load of cash and exchange at the boothes but this trip was thinking we might use the ATMs. Given all the advice and Diz's explaination. I tink we will still mostly to cash

bayleaf · #10 23-04-2008, 16:39

Quote:

Originally Posted by dizbuster

Most cards I use apply a margin of 1.125% plus a fee (with a minimum level). Windows can operate on a much smaller margin and still make a profit.

Today in the UK the Post Office Buying Rate Thb 58.02 to £1; compared to Bkk Bank 61.35 to £1.

Post Office Selling Rate 68.08 Thb to £1; compared to Bkk Bank 63.07 to £1 !!

Would mean changing £100 to Thb and straight back again at Post Office would return £85.22 !!

Wonder why there's such a big spread in the UK to change foreign currency over the counter compared with Thai banks/booths?

P.S. Not having a go at the Post Office in particular, their rates are pretty standard for all banks etc. in UK.

dizbuster · #11 23-04-2008, 17:01

The only reasons I can think of are...

A. They don't want the business as Thai baht is difficult to get, i.e. they purposely price it low/high.

B. They are doing the usual trick of slowly passing on any changes to customers, i.e. the 30% onshore/offshore differential is no longer applicable but when the interest rate drops, banks are notoriously slow in passing on the drop to customers for mortgages, loans etc.

As there is no reason anymore to have such a big spread between the buy and sell rates, it will be interesting to see if the banks do anything about their quotes.

bayleaf · #12 23-04-2008, 17:25

Quote:

Originally Posted by dizbuster

The only reasons I can think of are...

A. They don't want the business as Thai baht is difficult to get, i.e. they purposely price it low/high.

They do roughly the same spread for euro, Yen, Ringgit; all turn £100 into around £85-£89 range. So I'm thinking it's just another example of 'rip-off Britain'!?

prestagea · #13 24-04-2008, 16:01

I would hate to have US dollars right now. I just looked at an rate exchange graph from us dollars to thai baht over a 12 month period it should a repid down hill slide while other currencies I looked at are going upwards.

landofsmiles · #14 24-04-2008, 17:06

ATMs are my main source of drawing money here.

To give you an idea of rates/charges these are my 2 most recent withdrawals. Figures are UK£. I always withdraw 20,000baht using my credit card and use the ATMs at the yellow bank.

16 Apr CASH ADVANCE FEE
6.65
16 Apr BAY/THANON NA NAI PATO PHUKET TH
20000.00 THB @ 60.1196
332.67

07 Apr CASH ADVANCE FEE
6.53
07 Apr BAY/THANON NA NAI PATO PHUKET TH
20000.00 THB @ 61.2182
326.70

TanMan · #15 24-04-2008, 17:23

LOS, you should look into wiring money into the country. With the off-shore on-shore at or near parity, you may be better off. You're already getting nick for 2%.

If you transfer LARGE amounts, then the wire fee is amortized over a greater transfer and could/should work out cheaper...

dizbuster · #16 24-04-2008, 19:13

Quote:

Originally Posted by prestagea

I would hate to have US dollars right now. I just looked at an rate exchange graph from us dollars to thai baht over a 12 month period it should a repid down hill slide while other currencies I looked at are going upwards.

Not quite true.

Whilst it may be the current trend to believe that the US Dollar is spiralling downwards, the reality is somewhat different, as can be seen in the chart below.

TanMan · #17 24-04-2008, 19:36

Well, it certainly depends on the timeframe of the graph doesn't it? I remember getting 45:1, now it is 31:1.... I'd call that a spiral if you look back 7 years...

dizbuster · #18 24-04-2008, 19:43

Quote:

Originally Posted by prestagea

I would hate to have US dollars right now. I just looked at an rate exchange graph from us dollars to thai baht over a 12 month period it should a repid down hill slide while other currencies I looked at are going upwards.

Quote:

Originally Posted by TanMan

Well, it certainly depends on the timeframe of the graph doesn't it? I remember getting 45:1, now it is 31:1.... I'd call that a spiral if you look back 7 years...

I posted a 12 month graph because prestagea stated 12 months.

I can also remember when 1 dolllar was worth 1 point something Euros !!!

landofsmiles · #19 24-04-2008, 19:48

I can remember when 1 UK£ was over 90baht...and that was only a few years ago.

TanMan · #20 24-04-2008, 19:56

Quote:

Originally Posted by dizbuster

I posted a 12 month graph because prestagea stated 12 months.

I can also remember when 1 dolllar was worth 1 point something Euros !!!

Fair enough Diz, I stand corrected. Maybe I was just venting a little being a US currency holder. But, even your graph shows a 3% decline.

Latter end of a "spiral" maybe??