Pattaya Daily News

15 July 2007 :: 12:07:58 pm 22982

Bank Of Thailand To Ease Offshore Investment Regulations

BANGKOK, July 14 – In a concerted attempt to slow the appreciation of the baht,The Bank of Thailand is preparing guidelines to ease rules governing direct investment abroad.
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Bank of Thailand governor Tarisa Watanagase pledged on Friday the new guidelines under consideration will be “most flexible and versatile,” in the hope that they would help ease the continuing upward pressure on the baht.

The unit has appreciated by seven per cent since the beginning of this year, following a 12 per cent gain last year.

Mrs. Achana Waiquamdee, Deputy BoT governor for Monetary Stability, said after a meeting between the central bank and the Securities Exchange Commission (SEC) that the Bank is compiling data for a proposed package that offers maximum flexibility and multiple possibilities.

Currently the central bank caps offshore investment by corporations and individuals at a maximum of US$50 million per case per year. The same cap is applied for asset management firms, mutual funds and pension funds.

Patra Securities managing director for research Dr. Supavut Saichua commended the move by the Bank of Thailand, saying that the move will help to ease the pressure on the baht to appreciate.

However, he cautioned that such a move should be sustained on a regular basis, rather than as an ad hoc solution to be applied whenever currency pressure threatens the baht.

Reporter : PDN staff   Photo : Internet   Category : Business News

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