The currency of Thailand is the Thai Baht. At present (April 2008) 1 US$ is worth between 31 and 32 Thai Baht. The value of the Thai bath has appreciated considerably from 2006 onwards. During 2004 and 2005 one dollar valued consistently between 39 and 42 baht. Compared to that level, the Thai baht has appreciated by about 25%. There seems to be a 'weak currency' policy (though ineffectual) in that, as soon as the Baht strengthens some more, a lot of people start worrying about the effect on exports.

1 Baht (Bt) = 100 satang. Notes are in denominations of Bt 1000 (grey), 500 (purple), 100 (red), 50 (blue) and 20 (green), 10 (brown).
Coins are in denominations of Bt10, 5 and 1, and 50 and 25 satangs.

It is important to try to have small change (and notes of 20 baht) with you for small purchases and taxi fares.

You can convert major currencies to Baht at all banks and exchange booths. Banking hours are between 8.30 A.M. and 3.30 P.M. There are many exchange boots around Bangkok (in the tourist areas), that stay open until the evening. The rate of exchange at these does not vary with the rate you get at the banks, most exchange boots are actually run by banks.
Current Exchange Rates (Siam Commercial Bank)

Banks, most exchange boots will also change Travellers' Cheques and accept credit cards. Take your passport with you! Bangkok is also well provided with ATM (Automatic Teller Machine) where you can get cash (at a price) with your credit card. Look for the Mastercard or Visa signs. Western Union also provides services in Bangkok (at some post offices, department stores)
Some banks allow you to open an account, some don't (unless you have a work permit or so). With an account (if you are a frequent visitor to the country), money handling becomes much more convenient.

• Tipping : Tipping is not a usual practice in Thailand although it is becoming more common. Most hotels and restaurants add a 10% service charge to the bill. Taxi drivers do not require a tip, but the gesture is appreciated.

• Bargaining : Fixed prices are the norm in department stores, but at most other places bargaining is to be expected. Generally, you can obtain a final figure of between 10-40% lower than the original asking price. Much depends on your skills and the shopkeeper's mood. But remember, Thais appreciate good manners and a sense of humor. With patience and a broad smile, you will not only get a better price, you will also enjoy shopping as an art.

Spending money depends on a person's wealth status (rich or poor), characteristics (frugal or debt-prone) and circumstances (single, with family, retired, young, old etc.) So when I give a personal assessment of the cost of living in Thailand, it will not be applicable to all readers.

Thailand is a developing country, and this shows also in the wide discrepancies in available income for various groups of its population. Lots of people still work and have salaries in the 5,000 baht a month range. I doubt foreigners from the West could ever adapt to having only that amount of money to spend, even when 'going local'. On the other hand, there are some seriously rich people around, with money that most of us visitors will never come close to owing. So shops, services in Thailand cater to both groups of customers. As a result, it is possible to get some really dirtcheap deals as well as spending extravagantly.

Generally speaking daily necessities are very cheap. Imported goods (including a lot of cars) are expensive. Housing costs vary substantially.

Housing :
One can rent a well equipped (TV, airconditioning, installed kitchen, washing machine etc) 2-bedroom apartment or condominium for 25-40,000 baht. This will also include facilities such as a swimming pool, sauna, exercise room. Electricity costs (includes airconditioning on in one room most of the time) about 3,000-4,000 baht a month. Single rooms with airconditioning are available in the 5,000-8,000 range, but will not appeal to all.
Alternatively one can live in a medium class hotel or boutique hotel at 500-800 baht a day. Of course one will have to accept having only one room (not a lot of stuff can be stored), and sometimes less than attractive surroundings, but it does come with maid service, attached restaurants etc. Usually a discount can be obtained if staying for a few months or longer.

Living in condo, centrally located,
between 25,000-40,000 baht.

Cars :
It puzzles me who would want to use a car in Bangkok, but apparently many people do. Locally assembled cars (Japanese brands mainly) can be had in the 400,000-600,000 range. Imported cars (mainly European) are taxed heavily. Petrol sells at something more than 30 baht a litre, insurance costs around 20,000 baht a year, but does not cover as well as it should (especially for health related costs).
Taxis are really cheap to use. Even when taking 5-10 taxirides a day, it will be cheaper than using a private car. Buses even more so, but not always comfortable. Train transport and airline tickets inside the country are easily affordable. Please consider that driving a car poses a real risk, in view of the number of car accidents in Thailand. Driving behaviour is really below standards and traffic rules are often not enforced.

Communications and computers :
Fixed telephone lines are really cheap. Monthly subscription is 100 baht (!) and phone calls, whatever the duration of the call, cost 3 baht. At present, international phone calls have become cheap to. Phoning to Europe, USA is now at about 10 baht per minute or less.
Mobile phones used to be quite expensive, but now it is possible to buy a entry level phone in the 3,000-5,000 price range. Calls are much more expensive than when using fixed lines, at 1-5 baht per minute and more sometimes if calling long distance in the country. However, the market has become more competitive lately, and rates are dropping. Prepaid calling cards are the most popular option. Unfortunately, you are obliged to add value to your card every month, which basically means you have to pay a subscription fee of at least 300 baht a month (which you can use to make calls).
Computer prices are similar to those in the West. I have used local brand computers for years now without problems and with good services if necessary. Standard modem access to internet costs around 7-10 baht an hour (+telephone cost at 3 baht per call). Lately broadband services have become very appealing. For about 1200 baht a month (with True company, which has cornered 90% of the broadband market) you can have ADSL 2,5 Mbps download speed (lower rates apply for lower download speeds)
Computer original software is really overpriced (much more expensive than in U.S. or Europe), except for games software. Original games prices are in the 400-600 price range, usually coming with a Thai language manual, but otherwise the interface is English-language based. Pirated software used to be widely available (Pantip Plaza, Fortune Tower etc.) at hundreds of shops, nowadays you can still find it at the same locations as before, but with many less providers. Occasionally there is a total crackdown, and pirated software will disappear for a few weeks, only the reemerge later.
Music CD's cost usually less than 400 baht (imported stuff). Movies in VCD format (not available worldwide) are usually priced at 100-200 baht. However, the VCD format unfortunately is slowly disappearing. Original DVDs cost up to 800 baht, but possibly prices will go down. DVDs are seriously overpriced in our opinion, costing about 5 times the price of movie theatre viewing.

Daily necessities :
When locally produced, invariably cheap. Imported expensive foods are available at even smaller supermarkets. There seems to be a market for expensive imported strawberries, cherries and the like. But if you stick to local produce, it is a bargain.

Some examples :
Coke, Pepsi can : 13-14 baht.
Beer can : 20-35 baht.
Beef, chicked, pork : 80-120 baht per kilo.
Electricity : 2-4 baht per KiloWatt.
Movie ticket : 100-140 baht. Unfortunately movie theaters basically show only real blockbusters. The theaters are really fancy, much better comfort than in most places in the West.
Taxi fare : 40 baht for a regular trip (up to 3 km), thereafter slowly increasing by taximeter.

Food and restaurants :
Lots of local people eat outside, so cheap food is readily available at streetside foodstalls. We would not recommend eating on the side of the road though.. Just imagine all the car exhaust products you also ingest together with the food. A two plates meal at a Thai-style non-aircontioned restaurant will cost around 50-70 baht. Similar food in the restaurant of a medium class hotel will be 100-150 baht. A meal at McDonald's (medium French fries, hamburger and cheeseburger together) costs around 90 baht! Subway sells its footlong sandwiches at about 170 baht in Bangkok (some locations on Sukhumvit Road)

If you like upmarket restaurants, there are plenty available around Bangkok. Even with gournet food, it will be difficult to spend more than 1000 baht (25 US$) unless you accompany the food with expensive imported wines.
Drinks at entertainment venues are more expensive than expected. Most venues will charge around 100-125 baht for a drink.

Medical facilities :

For minor illness (colds, bruises etc.) we can recommend Bangkok Christian Hospital, close to the Silom BTS (skytrain) station, where service is good, specialist consultants are also available during weekdays. You will see a qualified physician there for 300-400 baht.

Hospital treatments are less expensive than in the West (if you are fully insured, it may not matter maybe). However bills can still become quite high in places like Bumrungrad hospital (soi 3 Sukhumvit Road). Nursing costs, room costs are really cheap. For a few thousand baht, you will get a very nice room, at a price that actually is lower than at most luxury hotels! Costs for the physicians and surgeons vary widely, but in case of a major event, you will be told in advance how much is will most likely cost (and you will have to pay it actually most of the time in advance, unless you manage to have your insurance company take care of it from the onset). As a benchmark, you can have an outpatient visit at Bumrungrad hospital with a specialist doctor at about 800-1000 baht (prices have increased by about 20-25% in 2007). One of our friends had arthroscopic surgery of one knee and was admitted for the procedure for one day, which set him back about 100,000 baht. No idea how much it would cost in Europe, but still looks like a lot of money. On the other hand, if you need mainly medical treatment, costs should be around 10,000-12,000 baht a day (this is just a randow approximate number) including room and nursing costs, food, medicine, (mostly short) visit by the physician once a day.

My personal assessment is that you need to consider monthly expenses in the 50,000-70,000 baht range, if you want live in a comfortable apartment and enjoy most of the facilities (not all are available) you are used to in the West. If you buy a brand new car, this will add of course substantially to the above estimate.