News Bank of Thailand implements capital controls to "stop short term speculation"

The Governor of the Bank of Thailand, Dr. Tarisa Watanagase, has announced restrictions on short-term capital inflows to limit "Thai baht speculation".

Mark Williams, Citywire AA-rated manager of the F&C Pacific Growth Fund, comments: "At this stage it is unclear whether these restrictions will be applied to equity investments. The lack of clarity in this announcement is in itself a negative.

However, we do not approve of restrictions on the free flow of capital and this move raises questions over the long term management of the Thai economy.

This measure will unsettle international investors, indicating a more protectionist management of the economy following the recent coup. This might affect the country's ability to attract long term international investment."