Currency Exchange Rates Thread

[Eric C]

This chart shows the US dollar Index:
http://quotes.ino.com/chart/?s=NYBOT_DX&v=d6
It's a measure of the strength of the USD relative to all of the major FOREX currencies.
As you can see it's been pretty steady at around 85 the whole time the Baht has been appreciating like mad. I suspect at some point the rug is going to be yanked out from under the Baht and I can't imagine the landing being very soft. I can't see any fundamentals supporting the Baht being stronger than about 37.
-----
Finally some news hot off the press...

Jan. 27 (Bloomberg) -- The Bank of Thailand may lift restrictions on foreign investment in fixed-income securities, including long-term bonds, after earlier saying it also plans to remove curbs on foreign-currency loans.

``We will also study the possibility of relaxing controls on long-term bonds,'' Governor Tarisa Watanagase said yesterday in Bangkok at a business seminar. ``The baht measure is temporary. We will lift it as soon as the baht stabilizes. We will also study the possibility of tracking investors in short- term securities such as commercial paper.''

Thailand is seeking to weaken the currency to help prevent prices of exports, which make up 60 percent of the economy, from rising. The baht rose 16 percent against the dollar last year, the best performer among 15 Asia-Pacific currencies tracked by Bloomberg.

The central bank on Dec. 18 imposed rules requiring local banks to withhold 30 percent of new foreign funds and penalizing investments of less than a year. The measures, aimed to curb speculation on the currency, triggered the steepest slide in the Thai stock market in 16 years.

The rule was abandoned for equity funds a day later, although it remains in place for bonds and real-estate mutual funds.

Companies investing in Thailand will be exempt from the requirement that 30 percent of their funds borrowed abroad are withheld if the loan is hedged for at least one year, Tarisa told reporters yesterday at a seminar organized by the Agriculture Future Exchange of Thailand. Details of the eased requirements will be announced next week.

``If the relaxation of hedged loans is effective in preventing speculation on the baht, the central bank may ease control on investments on long-term bonds,'' she said at the dinner meeting.

http://www.bloomberg.com/apps/news?p...mGM&refer=asia

[russellsimpson]

Details of the eased requirements will be announced next week.

I wonder if the announcement will come before or after they do another major flip-flop.

Until someone locks the generals in their barracks, I'm afraid the BOT is going to have less and less credibility.

[kenkannif]

Okay checking most of the currency convertors it seems a Squid is worth around 65 Baht or so currently (checked three of the main ones). I just got some money transferred from the UK and I got 69.31 Baht to the Pound.....why??? What's going on???

[bulldog]

^ i looked on Ceefax this morning and it was 65.5 - strange methinks. may be something to do with the alliance between thai rak thai and the reverse vampires

[kenkannif]

It's fucked...this money came in TODAY and I got 69.318 Baht to the Pound...right here in front of me....what gives???

[russellsimpson]

There seem to be two different rates for the baht being quoted in the past few weeks. An incountry and an offshore rate (vary by about four percent). That's one factor.

Exchange rates aren't set by the any government control mechanism as you know. So if a particular bank wants to put the screws to you, they can. Sounds like this is what has occured.

They can and will do what they like and in this time of baht uncertainty you either have to be very carefull or expect to get fucked over with foreign transactions.

My take in any case.

[Shuggy]

The exchange rate in Thailand is usually 5 baht more than you get in the UK,

[Loner]

This is what I mentioned a few weeks ago re the aussie dollar. The websites (like xe.com) were quoting 26 baht / dollar, but got 28.5 at the airport (and most bank in LoS were quoting this rate or close to it. In Australia, the rate sucked (not anywhere the website rate)so didn't bother doing any exchanges there.

[buddahas]

I remember Thai banks always giving about a baht more for my Canadian dolla then what was posted on currency exchange web sites. I thought maybe they just want to encourage spending?

[jonniethai]

I use Yahoo as a quick reference ( http://uk.finance.yahoo.com/currency...THB&amt=1&t=3m) but when transferring into my Thai account use this slower (to download), yet more comprehensive Kasikorn web page( http://www.kasikornbank.com/GlobalHo...fx/rate_fx.jsp)

Good luck.

[Whitey]

Here is what gives.

Ever since the 30% tax on transfers was made, 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. Bangkok Bank has rates on their site and that's the only one I go by, not these currency converter sites.

[jimbo]

The dollar is fuked now,..I gotta change Korean won straight to baht for this next trip.

[russellsimpson]

I wonder if you can do that Jimbo. actually I'd like to know.

It seems to me that the won is not convertible in some countries. Japan for example. Unless things have changed.

I'll bet you won't get much of a rate if you bring won here to change. I suspect you can't buy Baht in Korea. Anyway...might be worth checking out.

Just a thought.

[Bigsky]

Originally Posted by Whitey

The quotes on all of these currency converter sites are for that external baht market.

Do you think I'd get a better rate in the states? I'm flying home next week and am wondering whether to cash in here or there?????

[MisterStretch]

Jimbo, I think RS is right. Won is barely convertible outside the ROK. Change to Euros or Pounds, not dollars, methinks and you stand a better chance of retaining some value.