The central bank next week will unveil measures for further liberalisation of the foreign-exchange market, facilitating greater outflows to help ease pressure on the baht.”2009 was a challenging year …

Risks persist, though, on fragile global economic recovery,” Bank of Thailand Governor Tarisa Watanagase told a BOT-sponsored conference yesterday.”Capital flows will be more volatile this year. Funds will flow to countries that witness fast recovery. We saw the signals that pressured the baht late last year.

Thailand currency
BOT to ease control on foreign exchange

Excessive inflows can lead to asset bubbles if we’re not careful.”Aside from liberalisation, which will also support Thai companies’ relocation of labour-intensive activities elsewhere, currency-hedging tools will be offered to entrepreneurs, in order to ensure reasonable cost.Last year, Thailand welcomed net capital inflows of US$22.6 billion Bt748 billion: $20 billion as trade surplus, $1.5 billion through the bond market and $1.1 billion through the stock market. Inflows boosted foreign reserves, which stood at $134.7 billion as of last November, up from $85.1 billion at the end of 2007.

via BOT further liberalises forex market .

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

SEC tightens regulations on digital assets to enhance investor protection

In case of a withdrawal or transfer of fiat money at an amount from 2 million baht to not exceeding 50 million baht, digital asset business operators shall seek approval from two authorized persons.

UOB Thailand outlook changed to negative after acquisition of Citi

United Overseas Bank (Thai) Public Co Ltd, headquartered in Bangkok, reported total assets of THB725 billion as of 31 December 2021. The outlook was changed to negative from stable because the acquisition will result in a significant decrease in UOBT’s core capital ratio.

Citi to Sell Consumer Bank in Indonesia, Malaysia, Thailand and Vietnam to UOB Group

The agreement covers all related Citi staff, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon close of the proposed transaction.