BOT revokes capital control measure
BANGKOK: — The Bank of Thailand eventually decides to scrap the 30 per cent capital reserve requirement, effective on Monday.
The measure has been in place since December 18, 2006.
Ahead of the press conference at 4pm, Amara Sriphayak, senior director of the bank’s domestic economy department, on Friday said that many factors support the removal.
“There are many factors supporting the removal of the capital controls but we need to wait and see how to remove them and when,” she said.
– The Nation 2008-02-29
From this morning:
Baht hits new high as market readies for capital controls end
BANGKOK, Feb 29 (TNA) – The Thai baht hit a new high again in Thursday’s trading session because there is an expectation in the market that the central bank will scrap the 30 per cent reserve requirement, according to Bank of Thailand Governor Tarisa Watanagase.
She said the baht strengthened and broke through 31.99 to the US dollar compared with a range of 32.085-32.105 to the dollar on Wednesday, it’s strongest level in 10 and a half years.
Mrs. Tarisa attributed the continued baht rise to the market expectation that BoT would call off the reserve withholding measure.
However, she said, the local currency had strengthened in conjunction with other regional markets.
The previous government imposed currency controls in December 2006 in an attempt to halt the baht’s rapid rise against the dollar. The measure caused the biggest single-day drop in the Thai stock market in late 2006, with losses worth 203 billion dollars. Relaxations have since been made to the currency rules.
Mrs. Tarisa said should anyone want to know whether the central bank had intervened in the baht movement for now, they could see data on the country’s international reserve through the website of the bank.
She reiterated the bank’s supervision and management policies would remain unchanged.
Regarding a comment by the Securities and Exchange Commission (SEC) that the BoT is indecisive and uncertain in the scrapping of the capital controls, she said it is a difference of perspectives.
However, she reasserted that what the central bank would do must benefit all parties.
– TNA 2008-02-29
Related link:
Thai Baht Exchange Rates:
http://baht.thaivisa.com
taken from http://www.thaivisa.com
Tags: baht, Bank of Thailand, bot