Guest wowpow Posted December 20, 2006 Share Posted December 20, 2006 Curbs lifted as market crashes Red faces as B800bn wiped off share values POST REPORTERS Authorities were forced to make an embarrassing U-turn yesterday and eased stringent currency controls on foreign investors one day after the Stock Exchange of Thailand lost 800 billion baht in value _ the largest one-day drop in its 31-year history. Effective today, stock and foreign direct investment will be waived from the new Bank of Thailand rule requiring a 30% reserve on currency transactions. M.R. Pridiyathorn Devakula, the finance minister and deputy prime minister, acknowledged that authorities had ''underestimated'' the impact that the controls would have on the market. He met yesterday evening with market regulators, securities brokers and banks to discuss the fallout from the measures. Local stocks plunged 14.84% yesterday in a broad selloff that saw the Stock Exchange of Thailand index close at a three-year low at 622.14 points, down 108.41, on heavy trade worth 72.1 billion baht. Local and foreign investors alike sharply criticised the capital controls as ill-conceived and heavy-handed. But M.R. Pridiyathorn defended the measures as needed to relieve pressure on the baht, which has gained 14% against the US dollar this year thanks to steady capital inflows and strong exports. ''This was not a mistake. The central bank tried to address the problems. Without action, the baht would already have broken through 35 to the dollar,'' he said. ''We don't need to discuss who to blame. Our priority is on fixing the problems.'' The baht yesterday weakened slightly to around 35.9 to the dollar, compared with 35.5 on Monday. Full article http://www.bangkokpost.net/News/20Dec2006_news01.php Quote Link to comment Share on other sites More sharing options...
Guest wowpow Posted December 20, 2006 Share Posted December 20, 2006 South-East Asia hit as Black Tuesday engulfs Thailand Andrew Drummond in Bangkok # Shares collapse forces bank U-turn # Further fears for battered exports The Thai Finance Minister last night reversed a draconian capital control policy after the country Quote Link to comment Share on other sites More sharing options...
