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BANGKOK 20 February 2019 05:55
JerseytoBKK

Negotiating a better exchange rate?

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I remember reading posters stating that if you're transferring a decent amount of $USD to a Thai bank, you can ask the branch manager to give you the best available rate. On the https://daytodaydata.net/default.aspx website, it shows that rates are sometimes updated multiple times a day so how to catch the best rate?

 

I'll be transferring $15K this week, but Bangkok bank says I get whatever the prevailing rate is for that day. Is $15K not meaningful enough, or is BB a bank that doesn't give you a chance to get the best rate? Or is the info about talking to the branch manager now obsolete?

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I will give you a better rate...........what account number is your money in right now and I will tell you the rate I give. ok?

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Had it been $15M, you might have a chance to negotiate the rate.

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1 hour ago, JerseytoBKK said:

I remember reading posters stating that if you're transferring a decent amount of $USD to a Thai bank, you can ask the branch manager to give you the best available rate.

Whenever I have receive an inward remittance to my SCB account the SCB Forex dept. based in Bangkok contacts me prior to depositing it to confirm what it is for, whether I want to go ahead and change into baht and the rate they will use. It is at this point that I am usually able to get 2-5 satang more than their published rate at that time.

 

I have never done this via my branch and usually this has been for more than $US 20k.

 

The one occasion many years ago where I had a Foreign Currency Account and wanted to change it all into baht at my local branch they had to ring this department to agree a better rate for me - but it was more than 50k.

 

Not sure how it works for Bangkok Bank.

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1 hour ago, topt said:

Whenever I have receive an inward remittance to my SCB account the SCB Forex dept. based in Bangkok contacts me prior to depositing it to confirm what it is for, whether I want to go ahead and change into baht and the rate they will use. It is at this point that I am usually able to get 2-5 satang more than their published rate at that time.

 

I have never done this via my branch and usually this has been for more than $US 20k.

 

The one occasion many years ago where I had a Foreign Currency Account and wanted to change it all into baht at my local branch they had to ring this department to agree a better rate for me - but it was more than 50k.

 

Not sure how it works for Bangkok Bank.

Yep, Kbank would also give 2-5 satang over the published rate for amounts in excess of 20K or 30K.

 

However, they will find any way to milk customers. Say today the rate is 31.30 and there is an expectation tomorrow it will increase to 31.50, your inward will get credited instantly today, so that they don't pay you more baht tomorrow.

 

In reverse, when they feel the rate will drop, they will delay your inward for 24 hours or more, again, just to pay you less baht.

 

And about the 2-5 satang they "give", Kasikorn has like 7 different exchange rates that vary during a day, so when they give you the 2 satang bonus at 11 am, that's just matching the 1 pm rate.(which magically is 2 satang over).

 

When the rate drops, they don't give "bonuses".

 

Unfortunate, but not much can be done. I screamed at the call center a couple of times to stop holding my money and just credit the account. I will add the rate was dropping day after day at that time.

Edited by lkv
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15 minutes ago, lkv said:

Unfortunate, but not much can be done....

Welcome to Thailand....

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Krung Thai will negotiate via their head office, not the local branch.

 

We called ahead and they emailed us when the funds arrived but agreed not to convert until we called them

 

We got got 5 satang better than the published live rate, but as has been said, the rate can change numerous times a day in a volatile market.

 

My last 2 transfers required FET forms to be signed as well, that was done in the Ubon branch.

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Thanks for the replies. If it's only 2-5 satangs, then for a small transfer of $15K it obviously doesn't matter.

 

While the TT rate among the main banks varies as much as 6-7 satangs, what's strange is how the one who's offering the best today can be among the worst tomorrow.

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1 hour ago, The Fat Controller said:

My last 2 transfers required FET forms to be signed as well, that was done in the Ubon branch.

Can't speak for all banks, but on one occasion i had to do an FET, when they said I should go to the branch, I told them: "I am busy, I don't have time to go to the branch. Can we do it via e-mail?". And they agreed. Print, complete, sign, scan, send back via e-mail.

 

For whoever is lazy to go to the home branch or the branch happens to be in a different region.

 

Might work at any branch other than the home branch this FET these days, not sure about that.

Edited by lkv

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Currently the bank note buying rate of Bangkok bank is 31.01 THB and the selling rate 31.61 THB

So let's assume the "real" value is in the middle of these two, which means at 31.31 THB

Their current TT buying rate for USD is 31.28 THB

So currently they earn 0.03 THB per USD when you transfer money to Thailand

If you transfer 15k USD dollar the bank earns 450 THB from the currency conversion.

Do you think the bank manager will negotiate a special deal with so that you can save 100 THB? 😉

As somebody said before, if you would transfer 15 million USD you might get his attention, but not for 15k

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7 hours ago, jackdd said:

Currently the bank note buying rate of Bangkok bank is 31.01 THB and the selling rate 31.61 THB

So let's assume the "real" value is in the middle of these two, which means at 31.31 THB

Their current TT buying rate for USD is 31.28 THB

So currently they earn 0.03 THB per USD when you transfer money to Thailand

If you transfer 15k USD dollar the bank earns 450 THB from the currency conversion.

Do you think the bank manager will negotiate a special deal with so that you can save 100 THB? 😉

As somebody said before, if you would transfer 15 million USD you might get his attention, but not for 15k

The mid-market rate is almost never in the middle between the cash buy and sell rates. If a bank buys a lot of USD cash and sells considerably less, they would have to send the surplus cash to the U.S. (or another net buyer) to "cash in". That's an expensive process, and the bank would want to be compensated for it by charging a large spread when buying cash. On the other hand, since they have a surplus of USD cash they want to get rid of, the bank's spread when selling USD cash would be quite small.

 

A better assumption would be that the mid-market rate would lie midway between the bank's TT buy and sell rates. For Bangkok Bank those are currently 31.28/31.58, so the estimated mid-market rate would be 31.43. That means that Bangkok Bank is making a profit of 0.15 THB per USD, which does leave room for negotiation (maybe not for USD 15k, but it doesn't have to be millions).

 

Sophon

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Quote

Is $15K not meaningful enough,

it is not.

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