Bank of Thailand tries to slow strengthening baht
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Bank of Thailand tries to slow strengthening baht
Haverá coisa mais bonita que a honestidade? 
Pena não ser assim com todas as pessoas... ou Bancos.
__________
Bank of Thailand tries to slow strengthening baht
segunda-feira, 4 de Dezembro de 2006 10:29:29
BANGKOK (XFN-ASIA) - The Bank of Thailand asked financial institutions in Thailand to curb short-term capital inflow in a bid to stop speculation in the Thai currency, which is trading at a nine-year high.
BoT governor Tarisa Watanagase said the baht's rapid rise was partly due to the dollar's weakness, but also because of overseas investors making short-term transactions, especially in debt instruments.
'These measures aim at lessening the volatility in the foreign exchange market while minimizing the adverse impacts on the bond and other debt securities markets,' the bank said in a statement.
In a statement, BoT asked banks and other financial institutions to cooperate in overseeing short-term investments by non-residents.
It asked financial institutions to stop selling and buying debt securities through sell-and-buy back transactions for all maturities.
The central bank said financial institutions would be allowed to sell and buy foreign currency with non-residents for settlements of government bonds, treasury bills or BoT bonds only if the investments are for longer than three months.
The BoT also barred borrowing from non-residents, including through sell-buy swap transactions where there is no underlying trading, for investments in Thailand of maturity of less than six months -- three months longer than the previous measure.
'We have extended it to six months, meaning that they cannot sell-buy swap every three months, which is pretty quick and makes the baht fluctuate,' Tarisa said.
A currency trader at Kasikorn Bank said the investors have expected such measures from the central bank, so the baht only weakened slightly to 35.94 to one dollar from 35.92 in opening trade.
The Thai currency reached a nine-year high of 35.72 baht to one dollar on Friday, representing a 14.4-pct gain from early this year.
Finance Minister Pridiyathorn Devakula expressed confidence in the BoT measures and said that exporters would not require any extra measures.
'We didn't have to do anything to help exporters because the Bank of Thailand was about to issue these measures to stop the baht's fluctuation,' he told reporters.
Pena não ser assim com todas as pessoas... ou Bancos.
__________
Bank of Thailand tries to slow strengthening baht
segunda-feira, 4 de Dezembro de 2006 10:29:29
BANGKOK (XFN-ASIA) - The Bank of Thailand asked financial institutions in Thailand to curb short-term capital inflow in a bid to stop speculation in the Thai currency, which is trading at a nine-year high.
BoT governor Tarisa Watanagase said the baht's rapid rise was partly due to the dollar's weakness, but also because of overseas investors making short-term transactions, especially in debt instruments.
'These measures aim at lessening the volatility in the foreign exchange market while minimizing the adverse impacts on the bond and other debt securities markets,' the bank said in a statement.
In a statement, BoT asked banks and other financial institutions to cooperate in overseeing short-term investments by non-residents.
It asked financial institutions to stop selling and buying debt securities through sell-and-buy back transactions for all maturities.
The central bank said financial institutions would be allowed to sell and buy foreign currency with non-residents for settlements of government bonds, treasury bills or BoT bonds only if the investments are for longer than three months.
The BoT also barred borrowing from non-residents, including through sell-buy swap transactions where there is no underlying trading, for investments in Thailand of maturity of less than six months -- three months longer than the previous measure.
'We have extended it to six months, meaning that they cannot sell-buy swap every three months, which is pretty quick and makes the baht fluctuate,' Tarisa said.
A currency trader at Kasikorn Bank said the investors have expected such measures from the central bank, so the baht only weakened slightly to 35.94 to one dollar from 35.92 in opening trade.
The Thai currency reached a nine-year high of 35.72 baht to one dollar on Friday, representing a 14.4-pct gain from early this year.
Finance Minister Pridiyathorn Devakula expressed confidence in the BoT measures and said that exporters would not require any extra measures.
'We didn't have to do anything to help exporters because the Bank of Thailand was about to issue these measures to stop the baht's fluctuation,' he told reporters.
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