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July 25th, 2012, 07:41 AM   #1
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Need to calculate real exchange rate

Hi there,

I would like to calculate the real exchange rate between the Thai Baht and the Euro. ECB reference rates are currently 38.453 Baht to one Euro. See: http://www.ecb.int/stats/exchange/eurof ... hb.en.html

However, withdrawing local currency from an ATM anywhere in Thailand incurs a fee amounting to 150 Baht regardless of the amount withdrawn. In addition, the Dutch bank (I live in the Netherlands) levies a 1% fee of the total amount to cover fluctuations in the exchange rate.

So could somebody please advise me what the real exchange rate is taking into account the above mentioned factors?

Many thanks in advance.
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July 25th, 2012, 07:36 PM   #2
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Re: Need to calculate real exchange rate

Quote:
Originally Posted by Xircal
I would like to calculate the real exchange rate between the Thai Baht and the Euro. ECB reference rates are currently 38.453 Baht to one Euro. See: http://www.ecb.int/stats/exchange/eurof ... hb.en.html

However, withdrawing local currency from an ATM anywhere in Thailand incurs a fee amounting to 150 Baht regardless of the amount withdrawn. In addition, the Dutch bank (I live in the Netherlands) levies a 1% fee of the total amount to cover fluctuations in the exchange rate.

So could somebody please advise me what the real exchange rate is taking into account the above mentioned factors?
Why give us that link?

If you withdraw 50 Baht, your account is dinged for 200 Baht?! You're really taken for a Bath

Just the fact that there is a fixed fee regardless of amount makes "a real exchange rate" variable:
in other words, different for each amount withdrawn...
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July 25th, 2012, 07:57 PM   #3
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Re: Need to calculate real exchange rate

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Originally Posted by Denis
If you withdraw 50 Baht . . .
That's about $1.60 CAD.
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July 26th, 2012, 12:04 AM   #4
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Re: Need to calculate real exchange rate

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Originally Posted by greg1313
Quote:
Originally Posted by Denis
If you withdraw 50 Baht . . .
That's about $1.60 CAD.
Hmmm... perhaps I didn't explain myself properly.

Thai banks levy a withdrawal fee of 150 Baht regardless of the amount withdrawn. Dutch banks charge 1% of the total sum withdrawn to cover exchange rate fluctuations. Advertised exchange rates for cash are currently 37.87 per Euro.

Another factor to take into account is the maximum amount Thai banks allow you to withdraw. This varies per bank with some banks such as Kasikorn Bank, TMB, SCB and Ayudhya limiting the amount to 15,000 Baht. Bangkok Bank limits the sum to 20,000 Baht per withdrawal. So if you want to withdraw 40,000 Baht, it's going to cost you another 150 Baht.

So is it cheaper to take cash, or withdraw funds from an ATM? The latter is supposed to be cheaper, but taking into account the fees, is that really the case?

Let's take that maximum figure of 20.000 Baht as an example. That would cost me 528.12 if I used cash. How much does it cost me if I withdraw that sum from an ATM?
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July 26th, 2012, 04:36 AM   #5
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Re: Need to calculate real exchange rate

Say you have three alternatives:

1. You withdraw the funds needed from a Dutch bank and take that amount with you. Cost: 1% of the amount you withdraw.

2. You go to Thailand and withdraw the funds needed from a Thai bank. Cost: 150 bhat per 20,000 bhat (at Bangkok Bank); that's 0.75% of the withdrawal, provided you withdraw in multiples of 20,000 bhat.

3. You go to Thailand and withdraw funds as needed from a Thai ATM. Cost: ? (you didn't mention what the fees are for a withdrawal from a Thai ATM).

For alternative 1, you might save money: if you withdraw 25,000 bhat from a Dutch bank you pay 250 bhat; from a Thai bank, a withdrawal of 25,000 bhat would cost 300 bhat (assuming the fee is 150 bhat per 20,000 bhat or any part thereof).

Alternative 2 is cheaper according to the information you've given, but I don't think the banks are under any obligation to divulge all fees unless asked, so be careful. As well, I think you'd have to withdraw in multiples of 20,000 bhat to realize the savings, as I previously mentioned.

Alternative 3 is questionable. Here in Canada I pay $3 (a little over 2 euros) per withdrawal if the ATM is not owned by my bank, and that is per every $140. Thus its my guess this would be the most expensive of the three alternatives.
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July 26th, 2012, 05:44 AM   #6
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Re: Need to calculate real exchange rate

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Originally Posted by greg1313
Alternative 3 is questionable. Here in Canada I pay $3 (a little over 2 euros) per withdrawal if the ATM is not owned by my bank, and that is per every $140. Thus its my guess this would be the most expensive of the three alternatives.
Instead, why don't you get "cash back" when paying your grocery bill with your debit card?

Anyhow, to me, it's all in the eye of the beeRholder:
I know "smart?" people who spend ~$5 getting to next store in order to pay ~$3 less for a certain item....
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July 26th, 2012, 05:48 AM   #7
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Re: Need to calculate real exchange rate

Quote:
Originally Posted by greg1313
Say you have three alternatives:

1. You withdraw the funds needed from a Dutch bank and take that amount with you. Cost: 1% of the amount you withdraw.
Dutch banks don't charge withdrawal fees regardless of whether the bank in question is your own or not.

Quote:
Originally Posted by greg1313
2. You go to Thailand and withdraw the funds needed from a Thai bank. Cost: 150 bhat per 20,000 bhat (at Bangkok Bank); that's 0.75% of the withdrawal, provided you withdraw in multiples of 20,000 bhat.
Presumably, you're suggesting I open a Thai bank account? That's out of the question unfortunately since I'm not resident, just a frequent visitor. If I were able to, no charges to withdraw cash would apply. However, all banks charge 300 Baht to receive funds in another currency while the outbound transaction incurs a fee of 5.00.

Quote:
Originally Posted by greg1313
3. You go to Thailand and withdraw funds as needed from a Thai ATM. Cost: ? (you didn't mention what the fees are for a withdrawal from a Thai ATM).
Withdrawal fee is 150 Baht per transaction.

Quote:
Originally Posted by greg1313
For alternative 1, you might save money: if you withdraw 25,000 bhat from a Dutch bank you pay 250 bhat; from a Thai bank, a withdrawal of 25,000 bhat would cost 300 bhat (assuming the fee is 150 bhat per 20,000 bhat or any part thereof).
Charges for holding an account in a currency other than the Euro are punitive in the Netherlands and isn't even worth considering even.

Quote:
Originally Posted by greg1313
Alternative 2 is cheaper according to the information you've given, but I don't think the banks are under any obligation to divulge all fees unless asked, so be careful. As well, I think you'd have to withdraw in multiples of 20,000 bhat to realize the savings, as I previously mentioned.
Banks publish fees on their sites in the Netherlands, so it's easy enough to track that info down. Thai banks lap up their 150 Baht withdrawal fee with glee. If you ever go to Thailand, you'll find banks of ATMs bunched together like sardines in a tin. Phuket is absolutely festooned with them. I've never seen so many in one place before.

At the end of the day though, I calculate that the saving amounts to a little over than 85 Eurocents per transaction between exchanging Euros at a Thai bank and withdrawing funds from a Thai ATM provided I withdraw the maximum amount each time. This is only problematical if you arrive at an international Thai airport (either Bangkok Suvarnabhumi, or Phuket International) since both TMB and the SCB bank have a monopoly and exchange rates are considerably lower than at other banks. Also, both of them limit withdrawals to a maximum 15,000 Baht. The ATM withdrawal fee remains the same though at 150 Baht.

Anyway, thanks for your time.
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January 9th, 2014, 03:48 AM   #8
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Re: Need to calculate real exchange rate

hmm its not that much diffcult to calculate ..
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January 9th, 2014, 09:12 AM   #9
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Re: Need to calculate real exchange rate

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Originally Posted by junaid
hmm its not that much diffcult to calculate ..
WHAT is your point, Junaid?
This thread is almost 2 years old...
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January 13th, 2014, 02:33 AM   #10
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Re: Need to calculate real exchange rate

I know it's almost 2 year old..

currency rate in Pakistan
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