What Is the Thai Baht?

What currency is the baht?

If you’re planning a trip to Thailand, working with Thai suppliers, or sending money internationally, understanding the baht is essential. This article is designed for travellers, digital nomads, investors, and importers seeking clear guidance on how Thailand’s currency works, who uses it, and how to manage it efficiently. We’ll also cover exchange rates, practical tips, and common pitfalls to avoid.

What is the Thai Baht (THB)?

The Thai Baht is the official currency of Thailand. It is abbreviated as THB and symbolised by ฿. The baht has been Thailand’s legal tender for over a century and remains the only accepted currency throughout the country.

One baht is divided into 100 satang, although satang coins are rarely used in practice outside of formal banking or government transactions. In everyday use, you’ll most commonly encounter baht coins and banknotes.

Coins and notes in circulation include:

• Coins: 1, 2, 5, and 10 baht

• Banknotes: ฿20, ฿50, ฿100, ฿500, and ฿1,000

Each note features images of Thai royalty, and most coins are commonly accepted across all payment settings, from street food vendors to department stores.

Who uses the baht and where?

The baht is used exclusively in Thailand. It is the required currency for all purchases, services, contracts, and salaries within the country. While Thailand borders several countries—such as Cambodia, Laos, and Myanmar—the baht is not legal tender outside Thailand. Some businesses in border towns or tourist hotspots may accept foreign currencies informally, but this is the exception, not the rule.

If you are visiting Thailand, whether on holiday or for business, you will need to convert your home currency into baht to make purchases. Cards are accepted in many areas, but cash remains essential for small businesses, taxis, markets, and rural regions.

How the Thai baht works

Thailand uses a managed float exchange rate system. This means that the value of the baht is determined by market supply and demand but is sometimes adjusted by the Bank of Thailand to prevent excessive volatility.

As of 2024, typical exchange rates hover between:

• ฿35 to ฿38 per US Dollar

• ฿43 to ฿46 per British Pound

However, rates fluctuate depending on global economic conditions, Thai tourism demand, and trade balances. It’s worth monitoring rates before converting large sums or committing to major purchases in Thailand.

Benefits and drawbacks of using the baht

Benefits:

• Stable and credible: The baht is a long-established currency supported by a strong central bank.

• Widely accepted: You can use it anywhere in Thailand, from luxury resorts to street vendors.

• Flexible options: Cash, card, and mobile payment systems are all available in urban areas.

Drawbacks:

• Not accepted outside Thailand: You must convert it before or after your visit if you're returning home.

• Counterfeit risk: Larger notes, especially ฿1,000, are occasionally targeted by counterfeiters.

• Exchange rates vary: Rates offered at tourist kiosks and hotels are often worse than bank rates.

Common misconceptions about the baht

One frequent misunderstanding is that the US Dollar or British Pound is widely accepted in Thailand. This is not the case. While some hotels may accept foreign currencies, nearly all transactions in shops, taxis, and restaurants require Thai baht.

Another myth is that card payments are universal. In reality, many businesses in rural areas only accept cash, and even in cities, small shops or vendors may not have card machines. Visitors should always carry some baht in smaller denominations.

Tips for managing money in Thailand

• Withdraw baht from local ATMs to access fair exchange rates. Major banks include Bangkok Bank, Krungthai Bank, and Siam Commercial Bank.

• Avoid exchanging money at airports, where rates are often inflated.

• Use travel-friendly cards that waive foreign transaction fees and ATM charges.

• Always pay in baht when using a card—declining “pay in your own currency” helps avoid poor exchange rates.

• Carry small change for street vendors, taxis, and tipping, as larger notes may not be accepted in some places.

FAQs

Can I use other currencies in Thailand?
No. While some tourist-focused places may accept USD or EUR, the Thai baht is the only legal tender and required for most transactions.

Should I bring baht from home or exchange on arrival?
Exchange rates are usually better in Thailand. Withdrawing baht from local ATMs using a debit card with no international fees is often the most cost-effective method.

Are credit cards accepted in Thailand?
Yes, particularly in hotels, malls, and major restaurants. However, many everyday purchases are still made with cash.

Is tipping expected?
Not required, but appreciated. Rounding up or leaving 10–20 baht at a restaurant or in a taxi is common practice.

Real-life example

A couple from the UK visits Bangkok with £600. They exchange £100 before travel for immediate expenses and withdraw the rest using a fee-free travel debit card at a Bangkok Bank ATM. They receive around ฿26,000 in total and use cash for local transport, food markets, and tours. At their hotel and shopping mall, they use a credit card. By withdrawing cash locally and paying in baht instead of pounds, they save on fees and get a fair exchange rate.