Thai Baht: Currency of Thailand

The Thai Baht (THB) is the official currency of Thailand and holds a significant place in the country's economic and cultural history. This article provides an in-depth look at the Thai Baht, covering its history during the pre-decimal era and also the decimal currency system of the Baht.

History of the Thai Baht

The origins of the Thai Baht can be traced back to ancient times when various forms of currency were used in the region. Before the advent of modern banknotes and coins, Thailand utilized different mediums of exchange, including shells, beads, and metals.

One of the earliest forms of currency in Thailand was the "Pod Duang" or "bullet money," used during the Ayutthaya period (13th to 18th centuries). These were small, bullet-shaped silver bars that served as a means of exchange. The value of Pod Duang was determined by weight, and they were widely accepted in trade.

Tical and Baht were used to refer to a unit of weight, which eventually became synonymous with the currency itself. The Tical was used during the Kingdom of Ayutthaya and continued to be in use during the early Rattanakosin period (18th to 19th centuries). Baht was originally known to foreigners by the term Tical.

Thai Units of Weight

Like the British Pound, the Thai Baht originated from a traditional unit of mass.

Before Thailand adopted the metric weight system on 17 December 1923, the traditional system of units was used. The weight unit of Salung or Salueng, Baht, Tamlung or Tamlueng, Chang, and Haab were as follows:

Salung or Salueng: 3.75 grams
Baht: 15 grams
Tamlung or Tamlueng: 60 grams
Chang: 1,200 grams
Haab: 60 kilograms

Today, Salung or Salueng and Baht are still used as a unit of measurement in gold trading. In gold trading, one baht of 96.5% gold bullion is equivalent to 15.16 grams, and not 15 grams.

Pre-Decimal Thai Baht

Before the introduction of decimalized coinage in 1897, the Thai Baht was divided into various units, each representing different values. Even though the simple formal division of the Thai Baht was 1 Baht = 8 Fuang and 1 Fuang = 8 Att, each unit itself had names. Here is a closer look at these pre-decimal units:

Bia

Bia, meaning cowry, the shell which was used for trade, is the smallest unit of currency. It was equivalent to 1/100 Att or 1/6400 Baht.

Solot

Solot means sixteen. The unit is equivalent to one-sixteenth of a Fuang. 1 Solot = 1/2 Att = 1/4 Siao = 1/8 Seek = 1/16 Fuang = 1/32 Salung = 1/128 Baht.

Att

Att means eight. The unit is equivalent to one eight of a Fuang. 1 Att = 1/2 Siao = 1/4 Seek = 1/8 Fuang = 1/16 Salung = 1/64 Baht.

Siao

Siao means quarter. The unit is equivalent to one-quarter of a Fuang. 1 Siao = 1/2 Seek = 1/4 Fuang = 1/8 Salung = 1/32 Baht.

Seek

Seek means half. The unit is equivalent to one-half of a Fuang. 1 Seek = 1/2 Fuang = 1/4 Salung = 1/16 Baht.

Fuang or Fueang

Fuang is the formal standard unit which is equivalent to 1/8 of a Baht. 1 Fuang = 1/2 Salung = 1/8 Baht.

Salung or Salueng

Salung is equivalent to 1/4 of a Baht. The name is also similar to the Cambodian Salong. It was a traditional unit of weight in the region. Salung can be considered the Thai version of the mace, a traditional Chinese measurement of approximately 3.75 grams.

Baht

The Baht is the main unit of currency. Its alternative name is Tical. The name is also similar to the Cambodian Baat. One Baht weight measurement is equivalent to 15.244 grams.

Tamlung or Tamlueng

Tamlung is equivalent to 4 Baht.

Chang

Chang is equivalent to 20 Tamlung or 80 Baht.

Haab or Hap

Haab was the largest unit of currency and weight before decimalization. It is equivalent to 80 Chang or 6400 Baht.

Interesting Pre-Decimal Banknotes

In 1853, during the reign of King Rama IV, the Royal Siamese Treasury issued a warrant with the lowest value of one Fuang. Warrants with various denominations, including, Salung, Tical or Baht, 4 Tamlungs, and 80 Ticals (Chang). Royal reward issues with various denominations, including, 4 Tamlungs, 10 Tamlungs, and 1 Chang, were also issued. In 1874, during the reign of King Rama V, 1 Att note was introduced due to a shortage of low-value coins made of tin and copper. In 1892, the Siamese Treasury ordered Giesecke & Devrient in Germany to print paper money in various denominations. The denomination in English is “TICAL”, but the denomination in Thai is Baht. This proves that Tical was used interchangeably with Baht.

Interesting Pre-Decimal Bullet Coins

In 1880, to commemorate King Chulalongkorn's age of 28 which was equal to that of his mother, Deb Sirindhra, at the time of her passing, bullet coins consisting of 6 denominations were issued. The denominations issued were Chang (80 Baht or 20 Tamlung) weighting 1,210.40 grams, 1/2 Change (40 Baht or 10 Tamlung) weighing 603.90 grams, 5 Tamlung (20 Baht) weighing 303.07 grams, 2 1/2 Tamlung (10 Baht) weighing 151.21 grams, Tamlung (4 Baht) weighing 60.71 grams, and 1/2 Tamlung (2 Baht) weighing 30.33 grams.

Interesting Pre-Decimal Stamps

In 1883, Thailand issued its first set of stamps with the values of one solot, one att, one sio, one sik, and one salung. In 1885, the one solot stamp which was rarely used due to its low value was overprinted “one tical” which is equivalent to “one baht”.

Decimal Thai Baht

The year 1897 marked a significant turning point in the history of Thailand's currency system with the introduction of the modern Baht. Under the reign of King Chulalongkorn (King Rama V), Thailand embarked on a series of reforms aimed at modernizing the country’s economy and aligning it with international standards. This transformation was part of a broader effort to consolidate Thailand's sovereignty and promote economic development in the face of colonial pressures in Southeast Asia.

One of a series of reforms aimed at modernizing Thailand's economy and aligning it with Western standards is the decimalization of the Thai Baht, simplifying the currency system. The decimalized Thai Baht consisted of the main unit, Baht, and its subunit, Satang with 1 Baht = 100 Satang. This decimal system was devised by Prince Jayanta Mongkol, half-brother of King Chulalongkorn. This move mirrored global trends towards decimal-based currency systems, making Thailand's economy more compatible with international trade practices.

The new currency system was aimed to replace other traditional forms of money with standardized coins. The modernization process involved the minting of standardized coins with the value of 2 1/2 satang, 5 satang, 10 satang, and 20 satang dated RS 116 which is equivalent to the year 1897 with the inscription “Siam Anachak” translated as “Siam Kingdom” was issued. Even though Thailand decimalized its currency in 1897, coins with the Fuang value were issued until 1908. King Rama VI coins bearing the value Salung were also issued until 1925. In addition, even though Salung is no longer officially used, in everyday usage in Thailand, 25 Satang is still regularly referred to as Salung.

Baht

The Baht remained the main unit of currency, just as it was in the pre-decimal system. One Baht is divided into 100 Satang.

When the Government of Siam issued the 1st Series of banknotes in 1902, even though the denomination used in the Thai language was “Baht” the denomination used in the English language was “Tical”.

The current regular coin series has denominations of 1 baht, 2 baht, 5 baht, and 10 baht. These coins are widely used for everyday purchases. The current regular banknote series has denominations of 20 baht, 50 baht, 100 baht, 500 baht, and 1000 baht.

As of December 2023, Thai Baht is ranked by SWIFT as the 10th most frequently used world payment currency.

Satang

The Satang became the subunit of the Baht. It is equivalent to 1/100 Baht.

The current coin series has denominations of 1 satang, 5 satang, 10 satang, 25 satang and 50 satang. The three smallest denominations are not in circulation and are only used in banking and financial transactions for cleaning decimal amounts only. In addition, due to their low value, 25 satang and 50 satang coins are also rarely used. In the past, during the World War II period and early King Rama IX period, banknotes with the denomination of 50 Satang were also issued.

Baht Currency Symbol

The symbol used for Baht is B with a single vertical stroke ฿. This should not be confused with the Bitcoin symbol. Not to be confused with the Baht symbol which uses a single vertical stroke but Bitcoin uses a Latin B with two vertical strokes.

Conclusion

The Thai Baht has undergone significant changes throughout its history. From the pre-decimal system with various units representing different values to the decimalized Baht and Satang, the currency has evolved to meet the needs of modern commerce. Understanding the history and evolution of the Thai Baht provides valuable insights into the cultural and economic development of Thailand.