The Incompetent Bank of Thailand  

Oleh:

Likitkijsomboon, Pichit

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: Far Eastern Economic Review vol. 170 no. 01 (2007), page 22-25.
Topik: Foreign investment; Regulation; Control; Central banks; Monetary policy

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: FF21.19 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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The Bank of Thailand's (BOT) recent botched attempt to control the inflow of foreign funds into the country underlines the institution's perennial distrust of markets and its strong desire to exert control. The events of last month have been well documented by local and international media. On the evening of Dec 18, 2006, the Bank of Thailand announced draconian capital-control measures on the inflow of foreign funds. The BOT's new measures required interest-free 30% foreign-exchange reserves for all new foreign-currency purchases by financial institutions, with the exception of those with real underlying transactions. Not surprisingly, the markets reacted strongly and swiftly to the regulations. The BOT's draconian measures and its subsequent about-face brought about criticisms and incredulity in international and domestic investment communities and put the BOT's professionalism and expertise into the spotlight. The incident reflects the BOT's lack of understanding of investors' sentiments and the way in which international investors form expectations and react to various control measures.

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