Money is very essential for survival anywhere in the world. But imagine, you have all the money with you, yet, you are unable to use it. Won’t it be a scary scenario for you? This can happen with Expats in Thailand if they are unable to convert their native currency to the Thai one. This article will provide comprehensive information on foreign exchange protocols for expats in Thailand.
The Thai Baht is Thailand’s official currency. The symbol for it is THB. The Bank of Thailand is in charge of the country’s monetary policy.
Under the Exchange Control Act (B.E. 2485) and Ministerial Regulation No. 13, Thailand imposes some exchange regulations (B.E. 2497). While Thailand’s exchange controls are hardly the most stringent in the world, they can be a bitter pill for foreigners.
If you are traveling from China, Vietnam, Malaysia, or Myanmar, you should consider if it is better to exchange money in Thailand or in your home country.
Exchange controls
Only agencies with authorization from the Revenue Department can conduct foreign exchange transactions. Expats can obtain foreign currency through agents with legal approval if there is a compelling reason. This may include the following for expats in Thailand:
- Educational expenses abroad
- Travel expenses
- Payment of any debt in documentation in foreign currency – proof of inward remittance into Thailand is mandatory for loan repayments
- Direct investment abroad, i.e. where the participation is 10% or more – this can be an equity investment or a loan
- Share purchases abroad under an employee share scheme (up to USD1m per year)
- Overseas property investment up to USD10m per year.
Unless the investment happens in Myanmar, Laos, Cambodia, Malaysia, or Vietnam, direct foreign investment can only be made in foreign currency. However, one can invest only mutual funds with the Thai Securities and Exchange Commission approval in a portfolio abroad.
Remitting foreign currency into Thailand
The quantity of foreign currency you can bring into Thailand is unrestricted. The Foreign Exchange Regulations, on the other hand, state that “any individual obtaining foreign currencies from overseas must immediately repatriate such funds.”
Remittance can be made by exchanging your foreign cash into Thai Baht through a licensed agent or transferring it to a foreign currency account at a licensed bank. Within 360 days after receipt, the remittance must be made.
There is no requirement to repatriate foreign currency for the following individuals:
- Foreign nationals staying in Thailand for less than three months.
- Diplomatic staff.
- Thai emigrants who are permanent residents or working abroad.
Thai monetary policy
Inflation targeting is at the heart of the Bank of Thailand’s monetary policy. Since the year 2000, this has been the situation. Thailand’s monetary policy was centered on an exchange rate goal against the US dollar until the late 1990s.
Although the Bank of Thailand has the authority to set its inflation target, it hasn’t altered much since inflation targeting was implemented. The Bank of Thailand currently tries to keep inflation between 0.5 percent and 3 percent.
Most central banks throughout the world have recently adopted dovish monetary policies. This is frequently justified in an inflation-targeting framework by the need to:
- Provide monetary stimulus and boost the economy
- Reduce deflationary risks.
Above all, Foreign Exchange Regulations in Thailand is having multiple relevances with the legal framework of the nation as well. Moreover, as an expat in Thailand, you may find difficulty in the process of the currency exchange. In that case, Feel free to consult us by writing us at [email protected].
