SEC wants mild baht measures
- Published: 25/04/2013 at 11:47 AM
- Online news:
The central bank should go carefully in implementing measures to curb the strength of the baht currency to avoid possible negative consequences, Worapol Sokatiyanuruk, secretary general of the Securities and Exchange Commission (SEC), said on Thursday.
Any steps taken must not severely affect foreign investment inflow, otherwise foreign capital would flow out and this would create a bad impression on foreign investors. No country has used measures to block capital inflow before, he said.
Mr Worapol said the ongoing massive capital inflow derived from two giant countries’ injection of money into the economic system, substantially increasing global liquidity.
Apart from that, foreign investors were looking for attractive countries to invest inand Thailand is one of those places on the back of its strong economic fundamentals, having a low investment risk with good rate of return, he said.
The SEC secretary general said he expected that the US would soon tune down its quantitative easing measure as there were signals of good business performance of US firms and an increase in employment.
Such a movement would lead to an outflow of part of the foreign direct investment from Thailand, he added.
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