More people allowed to invest overseas

More people allowed to invest overseas

The central bank said on Thursday it has eased rules to allow more retail investors to directly invest in overseas securities, a move that comes as it tries to slow the strengthening of the baht currency.

Individuals with assets of at least 50 million baht ($1.6 million) but less than 100 million baht can now invest in securities abroad for up to $1 million a year, the Bank of Thailand (BOT) said.

Vachira Arromdee, an assistant governor, told reporters the relaxation was not aimed at weakening the baht, but to facilitate doing business and to make it easier for retail investors to invest abroad.

She said the central bank will continue to ease foreign exchange rules in line with a previously announced reform.

In 2016, the central bank allowed investors with assets of at least 100 million baht to directly invest in overseas securities, up to $5 million a year.

Regulators are treading carefully after tough capital controls imposed in late 2006 triggered a plunge in the stock market. Those were quickly lifted, and authorities now are focused on encouraging capital outflows to hold down the baht.

On Thursday, the baht reached 31.34 per dollar, its highest level since November 2013. It is Asia's best- performing currency this year, strengthening about 4% against the greenback.

Despite the strengthening, exports -- a key growth driver -- are expected to rise more than the central bank's forecast of 4% this year, Don Nakornthab, a BoT senior director told a seminar.

A more broad-based recovery in the global economy is making the central bank's export estimate "too low", he said, adding a central bank study showed the economies of trading partners were 10 times important than exchange rates.

Last year, exports jumped nearly 10% despite the baht rising 9% against the dollar.

Mr Don said the baht could strengthen further this year, driven by a weaker dollar and the high current account surplus stemming from stronger exports and tourism.

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