How exactly does exchange rates work for tourism?

[Paddy]

I spend a lot of time back an forth to the Czech Republic. I’ve done a deal with a local privately owed exchange bureaux. No commission and using a much closer rate nearer commercial. 3% better than the ATMs and 6% better than the other local bureaux.

[datestamp]

MF, are you still buying a lot of furniture overseas for your shop, especially in Thailand?

There are a variety of tactics you can use to battle the exchange rate.

You can talk to your UK bank about a Foreign Exchange Facility. (No I'm not recommending that bank. I'm just showing you their explanation).

Or you can sit in your office, a few days before your trip, getting quotes here and in Thailand.

Or you can open a Thai Baht bank account in Thailand, plus a Sterling account. You can then send out Sterling funds from the UK, and have them converted over at a moment when the exchange rate is good.

Or you can help UK banks get rich.

There probably are one or two other dodges you could use, but let's keep it simple for starters.

Or you could attempt to open a "Sharia compliant current bank account" in the UK for various transactions.

[Jesus]

Get a Nationwide account and draw out of cashmachine in Thailand, comms free, charges free and very close to the money market rate.

[Mailman]

This happens because the Government has allowed these scum to get away with telling fibs about 0% commission when its a well known fact that they claw this back by offering sh1t exchange rates when selling to you...and even worse when buying back!

Mailman

[_V_]

It occurs because high street banks wish to make HUGE profits, which they do because Mr & Mrs Chav are willing to pay high charges, accept piss poor rates and generally be screwed over in exchange for a branch in their Chavvy town centre.

HTH

[MarillionFan]

I've handed some advice out before concerning buying currency abroad as opposed to the uk as you can get a better deal in Thailand than buying it in the UK. But actually the difference is huge.

At Natwest £1 will buy you 65.18 Thai Baht. If you have some to sell they will buy them back at 77.94 baht - almost a 20% swing!!!!!!!!!!!!!

If you wait until you arrive in Bangkok, the Bank of Thailand will buy £1 off you and give you 70.53 (commission is almost 0 at high transfer rates). That over 8% more if you buy when you arrive.

How does this occur?