The cabinet on Tuesday discussed the four remedies to curb capital inflows and rein in the baht proposed by the Bank of Thailand, said a member of parliament who attended the cabinet meeting.
The strongest proposal is a mandatory hedging for foreign capital inflows to discourage them from gaining from currency exchange, together with a foreign capital reserve similar to the 30% imposed by former finance minister MR Pridiyathorn Devakula in 2006.
The mildest proposal prohibits foreigners from buying central bank bonds, while another sets a minimum of three or six months for foreigners to hold Finance Ministry bonds. The final option is to impose a fee on foreigners investing in the debt market if the investment gains.
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