BANGKOK, Nov 21 (NNN-TNA) – In a bold move, designed to balance capital flows, the Bank of Thailand (BoT) announced new measures, allowing Thais to freely deposit and transfer funds in foreign currency deposit (FCD) accounts, and to directly invest more in foreign securities.
The move came, after the central bank warned, the strengthening of the Thai baht may affect the fragile recovery of the Thai economy.
The measures will enable exporters to effectively manage liquidity and foreign exchange risk, BoT assistant governor, Vachira Arromdee, said yesterday.
The BoT closely monitored and intervened in the market as necessary, to limit excessive currency volatility, Vachira said.
The BoT relaxed regulations regarding investment in foreign securities. These include increasing investment limits and expanding eligible financial products, in order to expand investment options for residents, and enhance portfolio diversification.
The investment limit for retail investors has been increased from 200,000 U.S. dollars per year, to five million U.S. dollars per year.
Also, there is no investment limit in foreign securities through local financial institutions, such as brokerage firms and asset management companies.
There is also no investment limit in foreign assets for investors, regulated under the Securities Exchange Commission (SEC), Vachira said.– NNN-TNA
