How to Save When Exchanging Money in Thailand

Where and when to change their money are questions that travellers always grapple with. To get the best rates, should you change your money before your flight, at the destination airport, or should you check into your hotel first and then sort it out later?

There are a number of ways you can get hold of Thai baht in Thailand. The cost savings vary among these methods but no matter which one you use, the exchange rate that you get is the factor that determines how much you save while changing money.

Things to Take Note When Changing Money

Make sure that:

• The notes that you have with you are in good condition i.e. clean, not crumpled, not torn, without any marks or writing on them. This is because if they are not in good condition, they can be refused.
• You have your passport with you. The moneychanger needs it for their records.
• Always check the receipt that is given to you for errors in the amount to be changed (in your home currency), exchange rate, and the final amount given (in Thai baht).
• Always check for counting errors by counting your money at the counter before walking away.

Transaction Fees & Commissions

The moneychanger usually does not charge any commission on the transaction. Some might even advertise this fact prominently at their establishments. However, make no mistake about this, changing money is not and never free. These people are in business for profit and while they do not list their fee separately, you can be sure that it has already been included in the exchange rate given to you.

So be wary of people who try to charge you an extra fee for changing money and always scrutinise the rate that you are given carefully. 

The Current Exchange Rate

You can get info on this before leaving for Thailand or if you have internet access, right in Thailand itself. To do this, just do a search on Google or Yahoo Finance (e.g. search for ‘USD THB exchange rate’).

While the exchange rate you get in Thailand will always be lower than what the rates provided by these sources (the difference is the profit taken by the moneychangers), you can use it as a gauge to see whether what you are getting is reasonable or not.

Where to Exchange Money

Here are some methods and places where you can change money, with their pros and cons.

In Your Home Country

While it is convenient, never change your money in your home country (including at the airport) - you will always get a low rate if you do so. Instead, bring your cash with you and change it in Thailand.

At the Airport

You can also change your money at the tiny moneychanging booths within the airports in Thailand. These booths are operated by Thai banks, are open 24 hours a day, and are often located both before and after immigration. 

Again, while convenient, changing money at the airport means that you may be getting a poor deal as the rates here are often lower than those elsewhere in Thailand, even when you are comparing rates across different branches within the same bank.

At the Hotel

Hotels and other places providing accommodation often provide moneychanging services. Again, while convenient, the rates that they give are usually low as compared to those at banks and moneychangers outside.

At the Banks

Banks can offer pretty good exchange rates, depending on which one you go to. As different banks offer different rates, the easiest way of comparing them is to go to a major shopping mall, where the various banks will often have branches located close together, and look for the electronic display board near the entrance of each bank. The current rates of the bank will be displayed on it.

Do note that the rates offered by a bank will be the same across all of its branches (with the exception of branches at the airport where the rates can be lower).

At the Moneychangers

These are easily found in shopping centres, tourist areas, as well on the streets. Many of them display their rates on electronic display boards as well and their rates can sometimes be even better than those offered by the banks.

Dynamic Currency Conversion (DCC)

Sometimes, a store or hotel may give you the option of paying for your purchases in your home currency instead of in Thai baht. This is offered for the convenience of those who wish to make a purchase on the spot but yet do not have local currency.

While these retailers do not offer moneychanging services per se, the fact that they have this option means that they are effectively changing money as well, but not for everybody, just for their customers. And like the hotels, the rates they give are often poor.

Therefore, always insist on paying in Thai baht in these situations, even when you are using your credit card.  

Conclusion

You will always lose some money when exchanging it; the more you change, the more you lose.

Differences in exchange rates are not a big deal if you are changing just a small amount for immediate use, e.g. taxis, food, initial expenses etc. But if you are changing a large amount, it is best that you go to the banks and moneychangers as they give the best rates among all of the available options. And even so, be sure to check the prevailing exchange rates often as they fluctuate from day to day.