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BoT may give free rein to invest abroad

By on Sep 27, 2012 in Property News

The Bank of Thailand is preparing to allow listed companies the ability to freely invest abroad, says Suthasinee Nimitkul, director of the central bank’s Foreign Exchange Administration and Policy Department.

Previously, only companies with assets of at least 5 billion baht were given leeway to invest abroad.

The central bank is also considering lifting restrictions on foreign portfolio investment by institutional and individual investors. Institutional investors are restricted to foreign portfolio investment of US$50 million, with individual investors limited to $20 million.
The deregulation policy is expected to be finalised next year for review by the Finance Ministry and incorporated into changes in the country’s Exchange Control Act.
“Easing overseas investment regulations will give greater opportunities to local businesses and is in line with the move to deregulate with the creation of the Asean Economic Community [in 2015],” said Mrs Suthasinee.

The central bank has maintained overseas investment rules over the past several years in a bid to control capital flows that could affect the baht.

But sluggish economic growth in the US and Europe has led major central banks to ease monetary policies sharply, prompting concerns among Asian regulators of new capital inflows that could result in currency volatility or appreciation, in turn affecting the region’s export-dependent economies.

Mrs Suthasinee said the central bank plans to allow Thai companies to maintain deposits of Asean currencies to assist trade and investment activity within the region. Firms would still have to comply with reporting requirements to allow the central bank to track capital flows.

For the full article, please visit http://www.bangkokpost.com/business/economics/313872/bot-may-give-free-rein-to-invest-abroad

Source : Bangkok Post 25 September 2012

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