After a weak first half of October, the euro has regained some ground against the Thai baht. The European Central Bank’s (ECB) official reference rate rose from 37.574 baht on October 9 to 37.821 baht on Monday, October 26. The ECB is set to meet in Frankfurt on Thursday, October 29, to discuss monetary policy. The decision will be announced at 2:15 PM Central European Time, followed by a press conference.
Euro slowly climbs from October low
The recovery has been modest so far. At the beginning of October, the euro stood at 38.023 baht, before falling to 37.574 baht on October 9. Since then, the currency has gradually climbed back up; the ECB recorded a rate of 37.811 baht on October 22 and 37.821 baht on October 26.
For those living in Thailand who receive income, a pension, or hold savings in euros, such a difference has a direct impact on purchasing power. At a theoretical exchange rate of 37.821, €2,000 would yield approximately 75,642 baht. On July 22, the ECB reference rate was 38.570 baht; at that time, the same amount would have been worth approximately 77,140 baht—a difference of nearly 1,500 baht.
Actual exchange rates are usually lower
The ECB rate is a reference rate, not the rate you will automatically receive at a bank or currency exchange office. For this reason, the Bank of Thailand also publishes the average exchange rates actually applied by Thai commercial banks. On October 22, for example, the average buying rate for a euro transfer at Thai banks was 37.4268 baht. On October 14, it was 37.2598 baht.
Fees and the exchange rate applied by your own bank or payment service provider may further affect the final amount.
The market looks to the ECB on Thursday
The next key date is Thursday, October 29. At 2:15 PM, the ECB will announce its latest interest rate decision. The central bank’s decision is not officially determined in advance; therefore, it is best to avoid stating as a fact that interest rates will remain unchanged.
Sources: European Central Bank, euro reference exchange rate for the Thai baht; European Central Bank, meeting agenda for October 29; Bank of Thailand, daily exchange rates
Source: Thailandblog
