Thailand withdraws restrictions on capital inflows

Following yesterday's announcement by the Bank of Thailand of restrictions on capital inflows, the Thai authorities have today removed the restrictions after a sharp sell-off of Thai stocks.

Mike Hanbury-Williams , Head of Pacific Equities at F&C Asset Management in London, comments: "Today's decision to withdraw the restrictions provides some comfort for international equity investors. However, it is unsettling to see policy introduced and amended within such a time frame.

We are not in favour of restrictions on the free flow of capital and remain concerned that yesterday's move heralded a more protectionist policy stance by the new government."