Thailand not lifting curbs on overseas investments
The Business Times 18 October 2007)
(BANGKOK) Thailand's central bank has no immediate plans to remove curbs placed last December on overseas investments, said a central bank official. The currency has strengthened because foreign investors are buying Thai stocks, Pongpen Ruengvirayudh, director of the Bank of Thailand's financial markets and reserve management department, said in Bangkok. The baht hasn't 'strengthened much compared to other currencies,' she said. 'This is partly because of our reserve requirements. The measures are still useful. We will have to make sure the removal has no adverse impact before we decide to do it.' The baht's rise beyond 36 to the dollar last year prompted the central bank in December to impose restrictions on foreign investments to cool the currency's gains after exporters said it threatened sales abroad. Consumer confidence has sunk to a five-year low since the September 2006 coup and exports, comprising 60 per cent of the economy, are the main driver of growth. The currency controls triggered the Thai stock market's steepest slide in 16 years and prompting a reversal of the rules for equity investors within 24 hours. Most curbs were removed in March for overseas investors taking hedging measures to avoid profiting from baht fluctuations. -- Bloomberg
The Business Times 18 October 2007)
(BANGKOK) Thailand's central bank has no immediate plans to remove curbs placed last December on overseas investments, said a central bank official. The currency has strengthened because foreign investors are buying Thai stocks, Pongpen Ruengvirayudh, director of the Bank of Thailand's financial markets and reserve management department, said in Bangkok. The baht hasn't 'strengthened much compared to other currencies,' she said. 'This is partly because of our reserve requirements. The measures are still useful. We will have to make sure the removal has no adverse impact before we decide to do it.' The baht's rise beyond 36 to the dollar last year prompted the central bank in December to impose restrictions on foreign investments to cool the currency's gains after exporters said it threatened sales abroad. Consumer confidence has sunk to a five-year low since the September 2006 coup and exports, comprising 60 per cent of the economy, are the main driver of growth. The currency controls triggered the Thai stock market's steepest slide in 16 years and prompting a reversal of the rules for equity investors within 24 hours. Most curbs were removed in March for overseas investors taking hedging measures to avoid profiting from baht fluctuations. -- Bloomberg
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