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  1. #1
    Thailand Expat
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    Is this a quick way to make 10k?

    If I buy Dollars ($ss) for Baht (THB) at today's rate of 33.3 and then sell the Dollars for Baht @ 36 - would I be making around 10k (Baht) per every 100k (Baht) profit - or am I missing something?

    Looks like this might be a good way to get a quick 10% return on my money, but I'm not too good at speculating

  2. #2
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    ^ and how you would accomplish this ? have you heard about the 30% tax to stop speculation of the THB, basically cutting the THB supply between local and offshore banks ?


  3. #3
    Thailand Expat
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    30% only applies on sums over US20k though - doesn't it? So long as I change less than 20k each day, I should be fine?

  4. #4
    Thailand Expat
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    what may screw me though is the commission - anyone know what sort of commission Thai banks charge on fx transactions?

  5. #5
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    you can't connect the offshore market and the onshore market, that's the problem. If it was connected, do you think you would be the first one with this idea ?

    The rate difference would have disappeared long ago if that was possible, and since it didn't, it means not feasible.

    Maybe a big international bank could pull it off, but I am sure their compliance department would be screaming if that was the case.

  6. #6
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    tell us how you would think of doing it in details ? you will see holes very quickly

  7. #7
    Thailand Expat
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    ^so, not doable. There was me thinking how fucking clever I was too

    Now you see why I don't speculate

  8. #8
    Thailand Expat
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    Quote Originally Posted by Butterfly View Post
    tell us how you would think of doing it in details ? you will see holes very quickly
    Basically was thinking of going into a bank today and changing a couple of hundred thou into Dollars. Wait a week or two and change dollars back to Baht.

    I really believe the rate has to weaken - it cannot stay like this. It's killing us.

    So why not make a little bit on the side

  9. #9
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    ^ speculating is never a good idea, above all in the FX market.

    FX is speculative by definition, and very dangerous. It's much more volatile than stocks, which is not a speculative market by definition, but a source of funds for corporations. Very different objectives.

    Bonds are also highly speculative because of their sensitivity to rates and monetary policies. You can make more money speculating in bonds than stocks, and the pricing model is "public", which makes it easier (or harder in some cases) to take a trading decision.

  10. #10
    I am in Jail
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    Quote Originally Posted by William
    Basically was thinking of going into a bank today and changing a couple of hundred thou into Dollars. Wait a week or two and change dollars back to Baht.
    Ohh, if you are doing buy and hold, that's something different, yes you can do it. But arbitrage between offshore and onshore is not feasible.

  11. #11
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    ^^^ So you're expecting the baht to drop to 36 to the dollar in two weeks time ?

  12. #12
    Thailand Expat
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    ^to be entiely honest, I'm not expecting anything. I read the article below in today's Bangkok Post and thought... hmm, that would give me roughly a 10% return on my money... *and probably the reason why people like me shouldn't think *

    Economists call on BoT to rethink baht strategy

    Experts: failing to act could cause a crisis

    WICHIT CHANTANUSORNSIRI The Bank of Thailand needs to rethink its currency management strategy and intervene to stem the baht's rapid rise to ward off a new economic crisis, say two leading economists. Virabongsa Ramangkura, a former deputy prime minister, said the central bank should intervene to push the baht down to 36 to the US dollar.

    Bangkok Post : Business news

  13. #13
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    Seems to me they already tried that with the obviously poorly thought out currrency controls a few months back. These had the opposite effect from those planned. Maybe the central bank should try to increase the value of the baht thjat's bound to cause it to slide.

  14. #14
    watterinja
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    I wonder where this Baht slide is going to end? Industry is beginning to take a hammering, despite all the rhetoric to the contrary.

    Some manufacturers are beginning to raise product prices to offshore clients by as much as 30% in some cases. This will surely make them uncompetitive in the long run. The rate of slide is interesting, especially when compared to the rapid rate of rise of the SET.

    What is the mechansim at work?

  15. #15
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    William - you could do it and it could work.

    but, you've used that special phrase in Asia that negates everything....

    I really believe and have to ....

    if it was a completely free market .. yes. but can you really predict what the clowns in charge are going to do??

  16. #16
    Not again! machangezi's Avatar
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    IMO anyone can make quick bucks given that they spot out the timing of when Bank of Thailand is going to intervene with its contractionary monetary policy.

    *Got to be by mid of next month*

  17. #17
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    look I wouldnt bet on anything with these clowns,

    can anyone spell the word demonetisation.... ?



  18. #18
    watterinja
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    Thai clown has anagram


    Antic howl

  19. #19
    Rhubarb, rhubarb, rhubarb
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    And watterinja has an anagram

    TIE RANT JAW

    A good instruction IMO.

  20. #20
    watterinja
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    ^

  21. #21
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    Quote Originally Posted by Sir Burr View Post
    And watterinja has an anagram

    TIE RANT JAW

    A good instruction IMO.
    great stuff, juz tried to green u but gotta wait.

  22. #22
    ding ding ding
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    When I first moved to Thailand I bought a house for 2.25 million baht.
    Exchange rate was 75 to the pound.
    I lived in the house for 10 months and then decided to sell because it was too big. The developer agreed to give me 2.2million back for it.
    I sent the money back to England and the rate had changed to 68 to the pound.

    Profit was 160,000 baht, which was nice. Not to mention 10 months rent free living

  23. #23
    Bounced
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    Once, I found 4000 baht in a book. Great feeling.

  24. #24
    I am in Jail
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    I found 1000 THB in a bar

  25. #25
    Thailand Expat
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    ^ I lost a 1,000 Baht to a girl named Noi playing Connect 4 - sure it wasn't mine?

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