This is a form of 'arbitrage', the practice of exploiting a price differential between two or more currencies.Originally posted by Andy22:
... The question I have is to anyone out there who understands the financial markets would it be better to convert my money to dollars and then exchange the dollars to Baht in Thailand ? for the dollar seems to be stable in Thailand.
The problem with that Andy is that the dear old British Pound has taken a pounding (no pun intended!) in recent weeks - especially so against the US$. A few months ago it was $2.00 to the £1.00, this morning it is just over $1.50 to the £1.00.
Where will these currencies be in a few months time? Impossible to say, if anyone knew the answer to that then they would be very rich indeed.
What would I do? I'd keep my poor GBP in my pocket and take pot-luck when it's time to exchange. The markets are in turmoil at the moment and have not settled, will GBP get weaker, perhaps - will it strengthen again? Perhaps
There is a risk in whatever you decide to do, the Political uncertainty in Thailand may cause problems in the Thai markets, the US Presidential elections may cause the US$ to weaken or strengthen, some more Eurozone Banks may get in to trouble causing the Euro to fall ... and Gordon Brown may get lessons from Paul Daniels to fix the UK's financial crisis!