The exchange
rate of the Baht towards other currencies floats and may
change daily. Since November 1984, the Thai Baht has been pegged
to a basket of currencies including the US Dollar, the
Pound Sterling, the Deutsche Mark, the French Franc, the Japanese
Yen, the Hong Kong Dollar and the Singapore Dollar. The US
Dollar carries the largest weight in the basket, possibly
even up to 80%.
The result
of this is that the Thai Baht is fairly stable in its exchange
rate towards the US Dollar (around 40 Baht per US Dollar) but
changes its parity to other currencies almost to the extent as
those other currencies change their values in comparison to the
US Dollar. Therefore, a weak US Dollar usually means that
for visitors from countries whose currencies have gained against
the US Dollar, Thailand is good value. For visitors from countries
with currencies pegged to the US Dollar (like Hong Kong) the fluctuations
typically have no bearing.
Money can
be exchanged at commercial banks, at currency exchange
services of these banks and at authorized money changers.
Rates vary slightly from bank to bank. The currency exchange services
are often box offices in front of bank branches. On Sukhumvit
Road, a number of currency exchange services are accommodated
in transformed caravan trailers.
Many hotels
double as authorized money changers though their rates are usually
not as advantageous as those of banks or independent authorized
money changers. A small number of independent authorized
money changers offer better rates than banks.
