Baht defense strategy likely to affect current account
Article Abstract:
Thailand's use of capital controls to stem attacks on the baht may scare off foreign investors and leave the country with a large current account deficit. Thailand needs an average of $1.24 billion in foreign capital monthly in 1996 to finance its current account deficit, and for 1997, with the imposition of capital controls, the country needs $800 million. Although the controls have minimized the attacks on the baht, trading in Thailand's financial market has been marked by minimal activity, due in part to the two-tiered interest system.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Central Bank bars baht repatriation from stock sales
Article Abstract:
Thailand's central bank is disallowing foreign stock investors to repatriate funds in baht in a stepped up effort to defend the local currency from speculators. The move is intended to prevent profit-taking by arbitragers stemming from the bank's order to commercial banks to stop supplying baht to foreign investors without a legitimate commercial purpose. The ban resulted in a higher baht value in foreign markets, which encouraged arbitragers to liquidate their stockholdings in baht.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
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