Sporty Posted July 9, 2007 Report Share Posted July 9, 2007 You know what is called onshore rates... Forex is the biggest example of offshore rate. http://www.xe.com/ucc/convert.cgi?Amount=1.00&From=USD&To=THB Link to comment Share on other sites More sharing options...
wonderlust Posted July 9, 2007 Report Share Posted July 9, 2007 That didn't make any sense at all... Link to comment Share on other sites More sharing options...
Sporty Posted July 9, 2007 Report Share Posted July 9, 2007 What does not make sense, if you want to purchase or control OFFSHORE, Thai baht, for $1. you get 31.45 Baht. NORMALLY, the diffence is much smaller, than today. So, I would expect the USD, to be weaker in coming days. Link to comment Share on other sites More sharing options...
wonderlust Posted July 9, 2007 Report Share Posted July 9, 2007 What is this "OFFSHORE" rate you refer to and how does it compare to "onshore" rates? In the currency market there is an interbank rate that is the same throughout the world. Of course individual banks might make additional charges for their currency exchange service. There is no "onshore" and "offshore" rate. Please explain what you mean. I think you may be a little confused about how the currency markets work. Link to comment Share on other sites More sharing options...
shygye Posted July 9, 2007 Report Share Posted July 9, 2007 It is the currency controls that Thailand has instituted has caused the exchange rate spread. Check the forex rate for USD/Baht and then check the rate published in the Bangkok Post. There will be about a 10% difference. Link to comment Share on other sites More sharing options...
Sporty Posted July 9, 2007 Report Share Posted July 9, 2007 Offshore Exchange Rate The market price of a regulated currency outside the legal jurisdiction of the regulating government. It could be described as a legal black market rate. Source: http://www.answers.com/topic/offshore-exchange-rate?cat=biz-fin Offshore rate, for this legal black market, are based on futures or the forex rate. You can see that at this site: http://www.xe.com/ucc/convert.cgi?Amount=1.00&From=USD&To=THB Onshore Exchange Rate What you see at the Thai Banks, such as the Bank of Bangkok. http://www.bangkokbank.com/Bangkok+Bank/Personal+Banking/Foreign+Exchange/FX+Rates/default.htm Two years ago, the spread was generally about .35 or .4 baht. Now, it opened up a bit because of Thai government regulations, and runs 1.5 or more baht, to $1. USD. Link to comment Share on other sites More sharing options...
wonderlust Posted July 9, 2007 Report Share Posted July 9, 2007 According to that if you're changing money from GBP to THB you get a much better rate changing in Thailand than even if you changed at the interbank rate. £1 buys you 67.12 baht from Bangkok Bank but only 63.82 at the interbank rate. Link to comment Share on other sites More sharing options...
Sporty Posted July 9, 2007 Report Share Posted July 9, 2007 Interbank rate ??? Yes, you get a better deal for the GBP in Thailand. Same as you do for the USD a better rate in Thailand. Go to a big bank in London, to get you baht for you wallet before you travel, and you will get the forex rate, as well as a exchange currency fee or service fee, depending on what they call it. Link to comment Share on other sites More sharing options...
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