Bank Of Thailand Approves Dollar Accounts From Today

[george]

Dollar accounts approved

BANGKOK: -- The Bank of Thailand said Thursday it would allow the public to open US dollar bank accounts of up to $100,000 in a bid to take some of the US currency out of circulation.

Officials hope the accounts could help to curb the strong baht, which has remained at 10-year highs against the greenback.

Under the measure, ordinary Thais can own domestic bank deposits worth up to $100,000, central bank governor Tarisa Watanagase said, adding the scheme was part of a package aimed at pressuring the baht.

The central bank, under pressure from the army-backed government over the volatile baht, will present the package to Prime Minister Surayud Chulanont's cabinet for approval on Tuesday.

Under current rules, Thai firms can hold dollar-denominated bank accounts here but the public was not allowed to do so.

On Wednesday, the central bank slashed its key interest rate by 25 basis points to 3.25 percent, the fifth consecutive rate cut this year, amid growing pressure to rein in the rising baht.

The strong baht has put pressure on exports, the key driver of the economy, as it makes Thai goods less competitive abroad and cuts the value of repatriated profits.

The rate cut had little impact on the baht, as the Thai currency was quoted at 33.49-51 to the dollar in morning trade Thursday, compared to Wednesday's close of 33.46-48.

In the offshore market, the baht stood at 30.15-25 to the dollar, and Mrs Tarisa said she hoped the exchange rate gap between the onshore and offshore markets would narrow soon.

--Agencies 2007-07-19

[sibeymai]

If you want to bet on a Thia economy meltdown like 1997 then a USD account is a good thing. But in the short term, with continued baht appreciation and USD devaluation predicted who's gonna take the long odds ?

[richard10365]

Dollar accounts approved

BANGKOK: -- The Bank of Thailand said Thursday it would allow the public to open US dollar bank accounts of up to $100,000 ................................

Under the measure, ordinary Thais can own domestic bank deposits worth up to $100,000,

I don't know of many ordinary Thai's who have $100,000 to put in a bank account. This sounds more like a scheme for the rich to legally pocket money because of the inflated baht.

I'm probably wrong. I don't know how all of this really works. It's just a gut feeling.

[sibeymai]

Dollar accounts approved

BANGKOK: -- The Bank of Thailand said Thursday it would allow the public to open US dollar bank accounts of up to $100,000 ................................

Under the measure, ordinary Thais can own domestic bank deposits worth up to $100,000,

I don't know of many ordinary Thai's who have $100,000 to put in a bank account. This sounds more like a scheme for the rich to legally pocket money because of the inflated baht.

I'm probably wrong. I don't know how all of this really works. It's just a gut feeling.

I think you answered my question. Those "long odds" will be very much shortened for certain people with connections.

[darkside]

Which banks are offering these $ accounts then????

[Khun Bob]

Yep - krungsri are doing it :

http://www.krungsri.com/eng/pic/foreign.jpg

Looks easy to open the account as well - good opportunity for expats that want to hold their money in currency they may receive it in - then again I'd want to receive and convert to baht as soon as poss as if the Yuan is adjusted the Baht and many other asian currencies are likely to appreciate as well (well except a few...)

[sfokevin]

What kind of interest will one get?

Can these accounts be used to hold the 800,000 baht needed on deposit for retirement visa purposes

Edited July 20, 2007 by sfokevin

[seanwg]

there are allot of people in the country with $100K us to spare....

i used to laugh at my father. he used to say oh indias population has 1% with a million bucks.. 1 billon * 0.01 = ... fill in the blank.

Thailand is at 66 million. For arguments sake lets say its 3%. Pretty sizable portion of the population. Most of these people will never tell you they have those kind of assets...

From my math, 1.98 Million people have $1 million in the bank.

Edited July 21, 2007 by seanwg