Financial Times FT.com

Draconian controls imposed to help baht

By Amy Kazmin in Bangkok

Published: December 18 2006 19:25 | Last updated: December 18 2006 19:25

Thailand’s central bank imposed draconian capital controls to try to stem rapid appreciation of the baht yesterday, forcing offshore investors to keep their money in the country for at least a year or face stiff penalties for early withdrawal.

As from Tuesday, 30 per cent of all foreign currency inflows of more than $20,000 will be held on deposit – interest free – by the central bank, unless it relates to a trade in goods or services.

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