Exchanging currency for baht
 

I need an update on exchanging US dollars for Thai baht. I usually exchange travelers checks, but my bank is now charging for them. Do you get a better rate with cash? Are there any fees for converting cash, like there are for travelers checks? Will large bills, like $500 bills, cause a problem at a bank? I need to buy inventory for my business, so I don't want to get there with cash, and have a problem.

<i>Will large bills, like $500 bills, cause a problem at a bank?</i>

Yes, trying to exchange a $500 bill at a bank will cause a very, very big problem for you.

There is a fee for exchanging travelers checks, but the rate is very slightly better; no fee for cash. It's basically a wash at most exchange counters.

Since there are no US $500 bills in circulation, you won't be able to exchange them.

Best rates will be for US$100, next best for $50.

Rates are pretty consistent at the various exchange counters, but there is one that consistently gives a slightly better rate. For most of us, that doesn't make a lot of difference, but it may make a difference for you.

Oops - the place in Bangkok that gives the best exchange rate is Vasu. There are a number of locations.

As you do business in Thailand at least twice a year, I would think you would want to open a bank account in Thailand and keep funds in Thai Baht there to use from time to time. This would facilitate making purchases, where you could use a local TT to transfer funds directly to the seller’s account (generally these transfers are free or very low cost, they can often be done from an ATM terminal provided you have the seller’s bank account info), or even use a cashier’s check. HSBC could open a Thai Baht account for you, possibly even in the US, but certainly at one of their branches in Thailand, same with Citibank. You can seed it with US Dollars converted to Baht by the bank. You could also keep a US Dollar account there as well to save having to move funds.

Otherwise, perhaps I am missing something, but I don’t understand why you would not use wire transfers from a US account to pay for inventory purchases in Thailand, or a credit card like Visa or Amex for merchants. The credit card would give you the best rate of exchange in my experience. A TT transfer would be the safest in that you don’t have to carry around cash. There are inbound and outbound fees for the transfers, but you can usually work with your bank to get at least the outbound fees reduced or waived. If this is your business, work with your bank who holds your business account.

Finally, if you don’t want a local bank account or can’t purchase using a credit card or pay with a TT, then I would use an ATM to obtain cash, as again you are likely to get a good rate that way. Large withdrawals are usually not a problem. Check with your bank as to whether there are fees for foreign withdrawals, and again try to get them reduced or waived as part of your business account.

Cicerone, legally a non-Thai cannot open a bank account unless they have established residency, e.g., have a work visa or a retirement visa. Occasionally, a branch will do it, but they have really tightened the banking laws in Thailand.

If you have $500 bills you need to take them to a coin & currency shop. Last time I checked they were worth about $800.

But they won't even exchange em here.

trav. checks are really passe now.....it is hard to use them anyplace...

the best thing i find is using an ATM card.....just make sure your bank allows large withdrawals.... there will be a charge at both ends probably...

there will be no problem with large bills at all....just storing them is the problem....

AOEN ATMs don't charge the 150 baht fee and their exchange rates are higher than most.

For cash, there's always Super Rich, consistently at the top of the rate tables.

http://bankexchangerates.daytodaydata.net/default.aspx

Use the pull down, above the table, to switch to USD.

Make that AEON.

I was not aware that a non-Thai resident cannot open a bank account. In any event, the OP can open a Baht account with HSBC or Citibank in the US, and then use it to TT funds to vendors. (I also think there would be a way to finesse that into a local Thai HSBC account.)

Or as mentionod, just use TTs from a US account or use a credit card. Bringing wads of cash to pay vendors not only seems unsafe, it seems to be not a good idea from an accounting or legal standpoint (no way to trace that payments were made, other than a receipt, presumably written only in Thai, which is easily lost and perhaps hard to justify to the IRS or others. A record of bank transfers made to the vendors account is much better in case of a dispute of whether a payment was made.)

The fee to use an ATM is 150 baht, the fee to cash a travelers check is 33 baht. For small amounts of money it may be advantageous to use a travelers check in Thailand. There are credit unions who will sell travelers checks without any charge for their members. Only bring the largest denomination travelers checks you can get to cut down on lots of fees for small amounts. Same for ATM withdrawals don't waste a big surcharge on a small withdrawal!

I was just in Bangkok, and I went to VASU several times to exchange US $ to baht. I got a better rate there, usually by about .4 points, than the walk-ups on the street. 32.18 to 32.20 was the going rate at VASU and at the same time, the street exchange counters were giving 31.89 or less. Best to look around while you are out shopping, so you can see how the rates vary. VASU is just below the Nana BTS station, by the corner of Sukhumvit and soi 9(?).

it is difficult to find places that will accept TC.... hotels will almost always take them but you know their exchange rates....some banks will take them some not...

All of the exchange windows do accept travelers checks, but they do charge a fee to cash them.