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Originally Posted by kenkannif
^ But my bank gave me 69.31 Baht to the Pound from money coming into Thailand from the UK??? What gives??? Or is that what you meant???
Anyone changed any cash recently? What did you get?
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Quote:
Originally Posted by Whitey
a foreign baht market has developed. The quotes on all of these currency converter sites are for that external baht market. In Thailand, rates are subject to the internal baht market.
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From:
http://www.nationmultimedia.com/2007...s_30025225.php
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The BOT governor insisted the difference in baht value between the onshore and offshore markets was an expected result of central-bank measures to curb speculation.
Baht liquidity in the offshore market was limited, owing to the 30-per-cent withholding measure.
"Many mistakenly assume when the baht appreciates in offshore markets, it will strengthen onshore, too. But it doesn't. The BOT has already completely separated the markets.
"The difference in [baht value] in both markets won't be a concern. Finally, baht value in the offshore market will adjust itself," she explained.
Tarisa added that values in offshore markets had strengthened significantly over the past week, as baht liquidity offshore dried up as a result of bank measures preventing non-residents access to baht liquidity - an integral part of the anti-speculation policy.
She warned exporters to take care when quoting prices, because of the two-tier market system.
she said that quoting dollar values from the wrong market would result in losses.
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From:
http://www.rgemonitor.com/blog/economonitor/184623
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Bank of Thailand seems to have shot itself in the foot. Capital controls meant to stem speculative inflows are doing the opposite. The bank's policy has split the baht market in twain, with liquidity in the offshore market drying up and driving the value of the offshore baht higher than its onshore counterpart. The Nation's Thanong Khanthong explains what went wrong.
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In simple terms, the Uk pound to dollar rate is about 2 to 1 right now. The offshore baht rate is 32 or so per dollar, that's why the offshore baht rate is being quoted as 65 or so(32 .something times by two is close to 65).
The onshore rate is close to 35 to 1 dollar, the UK pound to dollaris 2 to 1 that why the rate being quoted by banks in thailand is close to 70. (2 times 35 is 70).
Understand things now, KK?