What Does The ‘Foreign Exchange Rate’ Mean and How Does This Affect The Cost of My Surgery in Thailand?
FX Rate = ‘Foreign Exchange Rate’ is the rate at which one country’s currency will be exchanged for another. It is also regarded as the value of one country’s currency in relation to another currency.
THB = ‘Thai Baht’, the currency of Thailand.
AUD = ‘Australian Dollar’, the currency of Australia.
Unfortunately over the past several years there has been a very significant decline in the AUD vs the THB translating into higher surgery and accommodation costs for CosMediTour Thailand clients. The AUD dropped by 10.5% against the THB over the 1 year period from FEB 2018 to FEB 2019 alone (01/02/18 1 AUD = 23.96 THB to 01/02/19 1 AUD = 21.44 THB per Westpac Foreign Exchange Historical Rates).
Foreign Exchange Rates vary on a daily basis and are affected by world economic activities, the local demand for foreign currencies and their local supply, country’s trade balance, strength of its economy, and other such factors which are out of the control of CosMediTour. We aim to be as transparent as possible about this as we understand dealing in foreign currency can be very confusing for our clients.
How Does The Fluctuation in Exchange Rate Affect Me?
All of our surgical procedures and package prices are based on prices denominated in THB (as determined by the hospitals and hotels/resorts). We then advertise and convert these prices to AUD for ease of understanding for our clients. Payment of a Deposit locks in the Package Price but not the Exchange Rate. The Exchange Rate is confirmed at the time when your final payment is made (at least 6 weeks prior to travel). And in some cases an adjustment (surcharge) is required.
You can find the Exchange Rate in which we have calculated your package on our website and also on your final invoice.
How Do We Determine The Current Exchange Rate?
The exchange rate we use is based on the International Telegraphic Transfer (ITT) rate set by our bank, Westpac. These are published and updated continuously throughout the day. Please refer to the Westpac International Telegraphic Transfer Bank Selling Rate which can be found here: www.westpac.com.au/business-banking/services/foreign-exchange-rates/
It is important to note when searching exchange rates you will often see what is called the ‘wholesale’ or ‘spot rate’. For example what is shown in a Google search of AUD / THB. This is the ‘market rate’ at which significant amounts of currency are traded. Unless you are buying and selling very substantial amounts of currency, you will not be able to buy currency at these rates.
We Allow Our Clients To Lock in The Exchange Rate
Clients may lock in the exchange rate by paying their invoice in full at any time after the invoice has been received by you. This prevents any additional costs/surcharges due to a declining AUD / THB rate.
Once the final invoice amount has been paid, we make International Telegraphic Transfers (ITTs) to pay our suppliers in Thailand.
We do not pay our suppliers until final payment is received, and therefore the package and procedure prices are subject to exchange rate fluctuations until this is complete.
Tips For Avoiding Additional Exchange Rate Costs
We understand it is frustrating to incur additional costs relating to exchange rate fluctuations. We encourage clients to keep an eye on the current exchange rates (linked above) to decide when they want to lock in and pay in full. Clients who want to make final payment should contact CosMediTour to have their invoice updated to reflect the current exchange rate to enable payment.
The final invoice is typically sent 6 weeks or more prior to the surgery date. Please let us know if you would like your invoice earlier to make final payment.
If at any stage in the process you are wanting to know the FX Rate or have any questions, please contact your Client Manager to discuss in further detail.