Foreign Capital Begins To Flow Into Thailand, Says BoT

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Foreign capital begins to flow into Thailand, says BoT

BANGKOK (TNA) -- Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn on Thursday said that foreign capital had begun to flow into the

country through the stock market and the bond market.

Mr Bandid said the central bank needs to monitor factors that can encourage the foreign capital inflow in the second half of this year. In the first half of the year, the capital had flowed into the country in a small amount when compared with other countries in Asia.

Although the Thai economy had recovered satisfactorily, its growth could be affected by many risk factors including a confidence shortage in the market.

However, it is expected the economy would recover more clearly in the second half of the year and the country’s political turmoil will ease.

“In the past few weeks, foreign capital has flowed back more clearly as can be witnessed by a continued rally in the Stock Exchange of Thailand’s

composite index and the increased investment in the bond market by foreign investors,” he said.

On the United States Federal Reserve’s forecast that the global and US economies would recover partially, Mr. Bandid said it was not much different

from what the central bank expected earlier.

Though the global economy is likely to continue recovering in the second half of this year, many issues need to be monitored closely as they could

affect global economic resilience.

They include the high unemployment rate in the US, more constraints many countries are experiencing in adopting fiscal policy to stimulate their economies, lending by overseas financial institutions, and the debt crisis in Europe. (TNA)

-- TNA 2010-07-30