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Against the USD it has been around 38-40 for most of last year, and now it has dropped down to 33. I've seen one forecast that will have it bottom out at 32. Why this sudden increase in value over the last few months? I'm traveling to Thailand in June and what was once a cheap trip is becoming more expensive every day :(

2007-02-16 06:30:25 · 10 answers · asked by dale62676 2 in Travel Asia Pacific Thailand

10 answers

the us ecomony sucks and the Thailand Finance Minister is not that great either. However now they have an off shore rate and a on shore rate. If you buy baht here in Thailand with US$ you will get a better rate, now about 35.75. So I would recommend to you to bring traveler checks with you when you come.

2007-02-16 12:15:44 · answer #1 · answered by Anonymous · 1 0

The plain reality is that the Baht is at a nine year high. The Thai economy is doing well. Unfortunately, the baht is doing so well it is causing not only poor exchange rates with the USD and other currencies, it is garnering lower prices (due to exchange rate) for Thai goods on export. The consensus feeling that an ideal rate of exchange for THB - USD of 40-1 is good but there are other factors to consider other than our wallets. I would love to see it back up to between 40 and 44 to 1 again.

As a resident of Thailand I have seen my purchasing power decline by nearly 20% over the last year due to not only the exchange rate but also the increased prices of goods and services and the seemingly unchecked increase in gasoline which currently is in the area of $3.00 USD per gallon.

I would recommend that you budget an extra amount of funds for your upcoming vacation. You can still have a great time here for not a lot of money but like you are already aware, the exchnge rate sux right now.

2007-02-18 12:10:07 · answer #2 · answered by Jim G 4 · 0 0

As most of your previous posters have stated, bring cash or travelers cheques when you come and unless a drastic financial situation occurs, your exchange rate will probably be fairly good. As far as what is happening with the baht, I beg to disagree with many of your posters who blame a poor US economy. Actually, a steady US economy and steady interest rates there are two of the reasons for the bahts recent surge. As much as I too would like to blame the current US administration, you just can't. Basically, the rise in the baht is due to huge capital inflows (900,000,000 baht in the first week of Dec. alone), money not only being speculated on the baht, but in other sectors of the Thai economy. Despite other questionable policies of the Bank of Thailand (BOT), they can"t be blamed for the bahts surge either, they've done quite a bit to try and halt the bahts surge (inc. the two-tiered currency exchange rate), as it has caused alarm in Thailand's exporting sector. Even coups, terrorism in the south and the New Year's Eve bombings haven't dampened investor's enthusiasm too much. Despite all the groping by fellow expats, the savvy investor can see an opportunity here.

2007-02-17 00:53:48 · answer #3 · answered by Gerald J 7 · 2 0

Well, take a look at the US trade deficit. We buy alot of things from Thailand. From food, clothing, and cookware. You would be surprised what comes out of Thailand. Even with the coup and the limitations the gov't put on Foreign investment did little to affect the dropping dollar. And it does not seem to want to stop. I studied the baht for the past 5 years and the "trend" had been to drop during the late spring and summer and then rise during the fall and winter months. Not this year for the first time since 1999. It is very sad. And the wars are draining more dollars out of the USA and weakening the dollar. I hope it is not long term but, it may be. I am traveling there in April and you just have to watch how you spend. Have you booked your room. Try www.asiarooms.com very good rates.

Good luck

2007-02-16 08:52:12 · answer #4 · answered by gbdelta1954 6 · 0 1

This off shore, on shore rates really hinder our plan to retire in Thailand. I hope they would just go with one rate already. We were planning to start and run a business while in semi-retirement in Thailand. Now, we halt the plan due to the uncertainty in exchange rate of Thai bahts. It seems that we would be at disadvantage if we transfer US dollars to Thai bank account 'cause we would get the lower offshore rate. Am I right? Also, we can only take $10,000 out of US. The travel cheques are only good for tourists not investors though. I wonder how the investment condition in thailand is now. My sister told me that tourism in Chiang Mai isn't as good as it used to be.

2007-02-16 14:05:25 · answer #5 · answered by PO@BWC 2 · 0 0

The answers above are good and pay particular attn to Nowhereman above - - If you use an ATM here or any electronic transfer, you will get the "offshore" rate which is closer to 33.4 or so lately - - and the onshore rate of 35.7 or so for t/c's and cash - so, it is best to bring t/c's - AAA and many banks will give them to you free but my advice is large denominations as do they not only get a better rate, but there is also a 23 baht charge per check.. for me a $500 denomination check is good..

Best of luck and stop the war.. eh, too late now - the cost has been enormous - more than most can imagine

2007-02-16 12:35:30 · answer #6 · answered by Anonymous · 1 0

It's mostly the weak dollar. The U.S. has a HUGE trade deficit with China and is beating down the greenback to compensate. It's not just the baht, but lots of other currencies that are very strong in comparison.

2007-02-18 01:39:04 · answer #7 · answered by Anonymous · 0 1

It is all pure economics. US economy had not strengthened under the present government. Plus the Asian markets are strengthening riding along with China's growth. So you have this present situation. Get your government to improve the economy and you can enjoy more countries, not only Thailand.

2007-02-16 13:56:42 · answer #8 · answered by peanutz 7 · 0 0

It's not effected only USD but also JPY.
Last year it was 2.6 but now going up to 3.8,
of course it's not that much change like USD but still.

2007-02-16 17:50:38 · answer #9 · answered by Anonymous · 0 0

The dollar is weakening all over. Also, the economies in SEA are getting stronger. Just think when they introduced the Euro it was trading for 0.75 to the dollar, now it's flipped. It takes a 1.30 to buy one Euro. :(

2007-02-16 07:18:41 · answer #10 · answered by cemnyc 2 · 0 1

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