http://etna.mcot.net/query.php?nid=27475
Central bank chief denies planning to end capital controls soon
BANGKOK, Jan 24 (TNA) - Bank of Thailand Governor Tarisa Watanagase on
Tuesday denied rumours that the central bank might end the 30 per cent reserve
requirement soon, saying she could not tell exactly when the measure would be
scrapped.
She said the central bank had closely monitored the baht movement
following the imposition of the capital controls on December 18.
She conceded the bank did not intend to see the measure last long and was
ready to adjust it.
However, any adjustment must not make the baht fluctuate or change so
rapidly that exporters and the overall economy are affected.
She reiterated the bank would attempt to the utmost to prevent the baht
speculation hidden in a daily inflow and outflow of money for business
transactions.
The Dec 18 rule requires financial institutions to withhold 30 per cent
of foreign inflows interest-free with the central bank. Funds will be returned
after one year, with a 10 per cent penalty imposed if money is withdrawn before
one year is up.(TNA)-E005
