Tag Archives: baht

BoT Governor Dismisses Trump’s Claims of Currency Manipulation

The Bank of Thailand has defended itself from Trump’s accusation of currency manipulation. The central bank’s governor, Veerathai Santiprabhob said in an announcement that there is no evidence implicating any of its officials of currency manipulation to illegally boost exports.

Veerathai released the response after the US decided to carry out an investigation on Southeast Asian nations for potential trade abuse.

According to sources, it’s a common act of central banks to get involved in foreign-exchange matters in times of need such as inflationary environment and geopolitical crises. In an interview with Haslinda Amin of Bloomberg Television, Veerathai dismissed Trump’s allegations.

He said, “I don’t think anyone has evidence that Thailand has manipulated the currency to gain an unfair competitive advantage. Thailand has not adopted any exchange-rate policies to gain an unfair competitive advantage in trade.”

Veerathai defended Thailand saying that the central bank’s foreign-exchange interventions were mostly caused by capital inflows which “have been coming in in a short period of time that could create adverse consequences.” He continued, “At times, we might have to intervene in the foreign-exchange market but that’s largely because of the intense capital inflows that we are on the receiving end of.”

US President Donald Trump has recently released an executive order that will probe 16 countries which have the biggest bilateral trade deficits with the world’s largest economy. Thailand is one of the countries on the receiving end of the order and is expected to be hit greatly because of the country’s dependency on exports. Currently, BoT is buffing up foreign-exchange reserves since the end of 2016 after inflows sharply increased. This move capped the baht’s advances.

Veerathai added that foreign-exchange intervention is normal. He explained, “Foreign-exchange intervention is definitely a measure that all central banks need to have on the menu list but there are also other policy measures that one can look at, from market-based measures to the likes of capital-flow management measures.”

Thailand have one of the largest trading surplus with the US. It is at 11th place.

Everything You Need to Know About Thailand’s Baht

Thailand is a Southeast Asian country known for its rich culture, famous delicacies, breathtaking festivals, cheap goodies, and friendly citizens. It’s no wonder it’s one of the hottest tourist spots in Asia. If you ever plan on conquering this country, you have to know it’s money.

The Baht
The official currency of Thailand is the Thai Baht. It is equivalent to 100 satang. At the time of writing, it matches the dollar at an estimated 35 Thai Baht for every dollar. You can use a currency converter online to know its current exchange rate.

Coins are denominated according to the following: 1 baht, 2 baht, 5 baht, 10 baht, 25 satang and, 50 satang. It is worth noting that 25 and 50 satang are small values that are now rare in circulation. The 1, 2, and 5 baht coins are made of silver while the 10 baht coin is made brass with a silver ring around it. The 25 and 50 satang are made of brass.

Banknotes or bills are denominated according to the following: 20, 50, 100, 500, and 1000 baht. The bills differ in both color and size. The 20 baht bill is the smallest is colored green. Next is the 50 baht bill which is blue. Still bigger is the 100 baht bill colored red. The 500 baht bill us purple. The biggest is the white 1000 baht bill.

Both coins and bills are printed with the picture of King Bhumibol Adulyadej in the front. The back features various iconic landmarks and people of the country.

Credit Cards and ATMs
Thailand is a market hub full of shops that carry all kinds of goods at affordable prices. Many tourists come to the country to shop. The good news is that most outlets carry credit cards. Visa, MasterCard, American Express, and other cards are accepted. However, the interest charge might be costly due to international transactions being tacked a 2% to 5% charge by credit card companies. Even worse, there are a lot of shops that will charge you on top of the international transaction fee. These surcharges are typically added at 3% for Visa or Mastercard and 5% for American Express.

You might think that using the ATM will be better but it has its own disadvantages. Acquiring cash overseas might charge you more because of conversion fees. What’s more is that Thai banks now charge 200 baht for using foreign ATM cards.

Here’s How To Keep Your Baht Safe From ATM Hacks

Earlier last week, Thailand suffered a major ATM hack that lost the nation a little over 12 million baht or an estimated $350,000. The attack was traced back to an Eastern European gang after analyzing hacks that hit 21 ATMs from Bangkok and five other provinces.

According to authorities, the foreign group got help from locals and initiated the attack on the night of July 29. The people involved should’ve been nearby or was at the airport. They used a malware that worked by inserting a card in the ATM which will render it useless and dispensing cash.The withdrawal cap was also hacked to increase from 20,000 baht to 40,000 baht.

The group illegally entered Thailand’s Government Saving Bank, prompting the Central Bank of Thailand (BoT) to issue warnings across the country’s commercial banks which covers approximately 10,000 ATMs.

Making sure that this never happens again is something that the Thai government is currently getting worked up with. So while investigations are being carried out, what you can do in your part as a citizen and ATM owner, is to find ways to increase your security from hackings such as this.

While it is the first major ATM attack in Thailand, the rest of the world has been enduring mobile scams since the dawn of technology. Because of this, they have already developed security measures that deflect attacks such as this. As an account holder, one of the things you can do is implement better security systems.

The Solution: Your Fingerprint
The thing that hackers most commonly do is steal identity. By obtaining personal information from you such as full name and date of birth, it’s just a matter of hacking a username and password and they’ll have instant access to your money. The fault in this system is just that, it relies solely on information that is available from an ID. The solution that was developed to solve this is to use something beyond personal information: a fingerprint.

The National Broadcasting Telecommunications Commission (NBTC) has developed a 7 million baht software application that will incorporate fingerprint scanning to existing registration systems. By doing this, users are given another layer of security.

Hopefully, it will be enough to fend off future hackers.

More Things You Need to Know About Thailand’s Baht

Previously, we talked about Thailand’s baht. (See: Everything You Need to Know About Thailand’s Baht) Here are more things you need to know about the Thai Currency.

The biggest banks in Thailand in order are Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Kasikorn Bank. All these banks are relatively easy access anywhere in Thailand. Siam Commercial Bank and Kasikorn Bank have bank outlets at airport with rates that are generally lower than other banks in the country. For these reasons, we recommend that you exchange money in Thailand because it mostly offer lower rates.

Exchanging money in Thailand is relatively easy. Independent money changers are spread across the country with Super Rich and Value Plus being the most dominating ones. They offer the best rates in Thailand. They are also convenient as most of them operate 24/7, especially at airports. There are also Forex booths and kiosks available in key points of the city.

Respecting the Baht
The Thai currency is considered as a sacred piece in the country due to it bearing the portrait of His Majesty King Bhumibol Adulyadej or a deceased relative. Because of this, the baht comes effectively under the lèse majesté law which is strictly enforced. The lèse majesté law prohibits any action including verbal, physical, or written act that disrespects the royal family.

Therefore, the following is NOT allowed to be done to the baht:
1. Stepping on the coin or bill. You may get the urge to step on the money if example a coin rolls away or a bill flies away. This could earn you a penalty.
2. Mishandling the baht. If, for example, you are angry or careless and you throw a bill or a coin at someone, it is a form of disrespect and could merit you a time in jail.
3. Deface or tear or burn the bill or coin. Defacing the baht will earn you the highest offense not only to the royal family but also to the people of Thailand.

What 3,500 Thai Baht Can Buy You Around the World

3,500 Thai Baht is roughly equivalent to 100 US dollars and while it seems like a steep price, it can afford a lot of things across the world at varying levels. This is because while 3,500 baht is equivalent to 100 US dollars, it has a different purchasing power depending on where you are. That’s even if you do remember to check on the exchange rates, it might still surprise you that what costs as cheap here could be so expensive abroad. So what can your 3,500 buy you? Check them out below.

3,500 Baht in Thailand
Let’s start, of course, in Thailand itself. 3,500 baht can get you about 6 pieces of real Thai silk. This is because each piece can price up to 600 baht. Real Thai silk is a commodity famous to tourists as it is made from high quality silk and created using a meticulous process. For 3,500 baht, foreigners can go on a full day of activities including tuk-tuk rides, a try at exotic food, an authentic Thai massage, and a visit to macaque monkeys.

3,500 Baht in India (6,786 Indian rupees)
Thailand’s co-Southeast Asian country, India, is a nation famous for their local bazaars. The home of rich textiles and fine jewelry, it is where your 3,500 baht can go the farthest. Go to a nearby bazaar in the city and hone your haggling skills. For 3,500 baht, you can already get a bunch of clothes, jewelry, pashmina shawls, shoes, books, scented products, and a taste of their unique cuisine.

3,500 Baht in Paris (90 Euros)
The city of love is also the city of culture and fine dining. Spending your 3,500 baht here won’t get you much stuff but at least you can immerse in their rich history and get a taste of their popular pastries. A Paris Museum pass is valid for six days and will get you in front of the line of the most famous museums in the world including Notre Dame Cathedral, Arc de Triomphe, Palace of Versailles, Orsay Museum, and Louvre Museum will cost you approximately 2,700 baht. The rest of your money, you can use for buying all kinds of pastries during that six-day stay.

3,500 Baht in Dubai (371 United Arab Emirates Dirham)
Dubai has recently boost into top of the world to become one of the most expensive city in the world. Your 3,500 baht can only afford you one of the following items: a pair of pants, a pair of shoes, and a dinner date meal. While it’s relatively expensive here, you can still survive by cooking meals at home and refraining from buying any unnecessary items.

The value of money is always changing that’s why, as much as possible, you have to appreciate the things in life that are free.