Bot 'to Be Asked To Drop Its 30% Control Measure'

[Mid]

Ministry wants a target set

Published on August 20, 2007

BOT 'to be asked to drop its 30% control measure'

The Finance Ministry plans to ask the central bank today to abandon its unpopular capital-control measures and instead adopt an exchange-rate target for the baht that mirrors regional currencies.

Bank of Thailand Governor Tarisa Watanagase has invited Finance Minister Chalongphob Sussangkarn, Deputy Finance Minister Sommai Phasee, well-known economists including Ammar Siamwalla and Olarn Chaipravat, academics, industrialists and businessmen to discuss foreign-exchange management strategy at the central-bank head office today.

Tarisa said on Friday that the central bank would ask the economists for suggestions on sharpening forex policy-making to cope with the recent baht volatility and possible global spill-over from the US mortgage-securities turmoil in the medium term.

"We are open to ideas from them," she said.

nationmultimedia.com

[Irene]

Ministry wants a target set

Published on August 20, 2007

BOT 'to be asked to drop its 30% control measure'

The Finance Ministry plans to ask the central bank today to abandon its unpopular capital-control measures and instead adopt an exchange-rate target for the baht that mirrors regional currencies.

Bank of Thailand Governor Tarisa Watanagase has invited Finance Minister Chalongphob Sussangkarn, Deputy Finance Minister Sommai Phasee, well-known economists including Ammar Siamwalla and Olarn Chaipravat, academics, industrialists and businessmen to discuss foreign-exchange management strategy at the central-bank head office today.

Tarisa said on Friday that the central bank would ask the economists for suggestions on sharpening forex policy-making to cope with the recent baht volatility and possible global spill-over from the US mortgage-securities turmoil in the medium term.

"We are open to ideas from them," she said.

nationmultimedia.com

If BOT accepts the advices, it would be the best news for Thailand and the current weakening of the baht even to 38 is likely. Our competitiveness would be at par with our neighbouring countries.

[JimsKnight]

Agreed, a good day for Thailand when the barnpot 30% rule is revoked, forever!

I look forward (like many others do) to the days of 72+ baht to the £.

[bangkoksingapore]

does this mean a fixed rate?

[highdiver]

that will be very agressive move with hedging.