Exchange rates - baht on 9 year high

I know that there was, unusually, a big difference between the onshore and offshore rates. I had been using my money in Thailand rather than getting from my bank in the UK. Today I checked the rates on Krung Thai Bank and Yahoo


currency KTB Yahoo
US$ 34.9 32.6
UK┬г 66.8 62.9
Euro 45.7 42.8

I checked my UK Bank and the last excvhange rate they gave me on 27th Feb was 69.7

I wonder where my UK bank get their rate from?

Graph for 3 months per Yahoo
US
http://img.photobucket.com/albums/v27/wowpow/us.png


UK
http://img.photobucket.com/albums/v27/wowpow/Uk1.png

Uro
http://img.photobucket.com/albums/v27/wowpow/Euro.png

UK

I wonder how the volatile fluctuations have been affecting the "import-export" business. Perhaps our resident import-exporter would like to fill us in.

... what it was the sad old retirees did with their time, and now I know - chase the last satang down on their exchange rate, hopping from from one currency exchange booth to the next, hoping to save the cost of a cup of coffee

[bedbugy1-old]

do you know 100 satangs
= 1 baht give me a hundred wieght of the last satang s
no us old farangs look for the best deal of the day whats wrong with that may be you was born with a silver spoon in your gob with an iron rod up your arse gone rusty in need of oil

[fedssocr]

I've been following the rate in the newspaper here (Washington Post) and was surprised to see the rate had fallen below 33 to the dollar. I suppose once the financial markets settle down (if they do) then perhaps it will climb back up a bit...unless we keep getting bad economic news here in the US. I guess most of us who care about this have seen the BoT pronouncements about where they would like the rate to be but they don't seem to have many tools to effect things.

[travelerjim]

Here is Bangkok Bank buy rates for March 8, 2007

In Thailand...at Bangkok Bank:

Currency Description Bank Note Buying Rates Selling Rates

Bill-DD-TT

Buying Rates Selling Rates Sight Bill TT

USD1 USD : 1 34.02 35.45
USD5 USD : 5-20 34.40 35.45
USD50 USD : 50-100 34.88 35.53 35.05 35.15 35.35

GBP United Kingdom 66.90 68.73 67.63000 67.80250 68.47500

EUR Euro Zone 45.67 46.73 45.88000 45.98500 46.48750

JPY Japan (:100) 29.55 30.58 29.97250 30.04250 30.47500

HKD Hong Kong 4.41 4.57 4.47000 4.48500 4.53500

http://www.bangkokbank.com/Bangkok+Bank ... efault.htm (http://www.bangkokbank.com/Bangkok+Bank/Personal+Banking/Foreign+Exchange/FX+Rates/default.htm) .

For wire (TT) transfers..today you would get 35.15 Thai baht (TT rate) to one US dollar...
last week I got 35.62 Thai baht to one US dollar.

TJ

I've been following the rate in the newspaper here (Washington Post) and was surprised to see the rate had fallen below 33 to the dollar.
The rates the WP and other western newspapers publish is the offshore rate and is irrelevant unless you are conducting international business or trade. The rate onshore has never been that low since 1997:-

Baht hits highest rate since 1997: (BKK Post breaking news March 8) -
The baht rose to its strongest level against the dollar in more than nine years in onshore trade Thursday, helped by the appointment of Chalongphob Sussangkran as new finance minister.

The baht rose to 35.10 baht per dollar today, the strongest level since the collapse of the currency in mid-1997.

To get the daily exchange rates onshore (i.e. the rate you get for cash or travellers cheques at banks and bureau-de-change in Thailand (n.b. TC's are in the buying rates sight column)) check out:

http://www.bangkokbank.com/Bangkok+Bank ... +Rates.htm (http://www.bangkokbank.com/Bangkok+Bank/Web+Services/Rates/FX+Rates.htm)

[fedssocr]

The rates the WP and other western newspapers publish is the offshore rate and is irrelevant unless you are conducting international business or trade. The rate onshore has never been that low since 1997:-



Right, I understand that. But it is still useful to watch the rise or decline since the onshore and offshore rates mirror each other. So it is not irrelevant. ANd since I am reading my local paper every day anyway it is easy enough to look at the chart in the business section to follow what the rate is doing.

CURRENCY AT 9-YR HIGH
Chalongphob faces first test as baht jumps

BOT intervenes in forex market; firms increase foreign debt as currency gains

The Bank of Thailand (BOT) reportedly intervened in the foreign-exchange market yesterday as the baht jumped to another nine-year high of 35.13 to the US dollar, following massive sales of dollars by exporters. "Exporters are selling dollars on expectation the baht will strengthen further once the capital-control measure is lifted," said a dealer at a commercial bank.
The baht opened yesterday at 35.19/35.21 to the dollar before strengthening to a fresh nine-year high of 35.13 during intra-day trading. It closed at 35.20/35.21.
The BOT hinted its controversial 30-per-cent unremunerated reserve-requirement measure could be lifted, following huge pressure from a business community that has been hurt by a foreign-capital deterrent effect since the control was implemented last December 19. The exception has been the export sector, in whose interests the measure was introduced.
Expected cancellation of the measure has encouraged Thai companies to build up their foreign-debt positions, leading the central bank to monitor the country's foreign-debt position closely out of concern it may create higher economic risks. The reaction is a reverse of company behaviour after the 1997 economic crisis, when Thai debtors rushed to repay their foreign debts as the baht weakened dramatically.
Foreign debt climbed rapidly last year. At the end of December, the country's external debt totalled US$58.57 billion (Bt2 trillion), an increase of $6.5 billion, or 12.6 per cent, over the previous year. This compares with an increase of only $728 million, or 1.4 per cent, in 2005.
Short-term foreign debt was up 17.8 per cent to $18.86 billion at the end of last year, accounting for 32.2 per cent of total external debt. It accounted for only 30.8 per cent and 23.7 per cent in 2005 and 2004, respectively. "It has not yet reached a critical level, because it is only half the level it reached during the economic crisis. We are not concerned, but we are staying alert," said BOT Governor Tarisa Watanagase.
Newly appointed Finance Minister Chalongphob Sussang-karn has voiced disagreement with the 30-per-cent withholding measure and is expected to revoke it.

full story http://www.nationmultimedia.com/2007/03 ... 028880.php (http://www.nationmultimedia.com/2007/03/09/headlines/headlines_30028880.php)