BANGKOK, Thailand – European retirees transferring pensions to Thailand are seeing a temporary boost from a weaker baht, but rising living costs are eroding the gains.
What the Current Exchange Rate Means for Euro Recipients
On May 4, 2026, the Bangkok Bank offered 38.56 baht per euro, up from about 37.80 baht a month earlier. A typical German pension of 1,500 euros now converts to roughly 57,840 baht, compared to 56,700 baht last month – a gain of around 1,100 baht solely from the exchange rate.
The international mid-market rate stood at 38.36 baht per euro at 11:19 UTC on the same day, according to xe.com. That rate is not available to individual customers but indicates the market trend.
What Fuel and Electricity Cost the Exchange Gain
Since May 1, diesel has cost 40.80 baht per liter and gasohol 95 petrol 43.30 baht – increases of 60 and 85 satang respectively, according to PTT and Bangchak. For someone using 60 liters monthly, that adds about 45 baht in extra fuel costs.
The electricity tariff rose from 3.88 to 3.95 baht per kilowatt-hour in May, as reported by the Energy Regulatory Commission. A household consuming 300 kWh per month now pays roughly 21 baht more. From June, the government plans a tiered rate: those using under 200 kWh will pay a maximum of 3.00 baht, while those exceeding 400 kWh will pay over 5.00 baht.
What Really Remains at the End of the Month
A concrete calculation: the 1,100 baht exchange gain is offset by about 66 baht in higher fuel and electricity costs. Additionally, major consumer goods producers including Unilever, Saha, and Nestlé have announced price increases for April and May due to rising energy and raw material costs, according to Thairath.
Roughly half of the 1,100 baht gain may remain after accounting for fuel, power, and groceries – less if energy prices continue to climb. The exchange rate benefit is real, but it does not fully compensate for cost increases.
Why the Baht Is Weakening Now
Three factors are simultaneously pressuring the baht. The Bank of Thailand has kept its key interest rate at 1.00 percent – a historic low. Investors seeking higher returns are moving capital to the United States, reducing demand for the baht. A government stimulus package worth 400 billion baht is also injecting liquidity into the economy.
The second factor is the oil price. Thailand imports nearly all its oil, and rising global prices – driven by tensions around the Strait of Hormuz – drain foreign reserves and weaken the baht. The third factor is high US interest rates: the Federal Reserve has signaled no immediate cuts, keeping the dollar attractive and the baht under pressure.
What to Consider When Exchanging Money Now
Exchange rates among different banks can vary by 20 to 40 satang per euro on a single day. For a 2,000 euro transfer, that difference amounts to up to 800 baht. It pays to compare rates at Bangkok Bank, Kasikornbank, and SCB before transferring. Exchange booths in tourist areas typically offer worse conditions than main branches of major banks.
Those with flexibility can split monthly transfers: send a fixed base amount at the beginning of the month and the remainder on days when the rate is more favorable. This requires a small buffer in a European account but can pay off as long as the baht remains volatile.
Editorial Notes
Exchange rates change daily. The figures cited are as of May 4, 2026, and are for orientation only. This article does not constitute financial advice.