ID :
142167
Wed, 09/15/2010 - 10:10
Auther :
Shortlink :
http://m.oananews.org//node/142167
The shortlink copeid
Government likely to impose measure to control capital inflow soon
BANGKOK, Sept 15 – The Thai government will soon likely present a measure to control foreign capital inflows in an effort to slow the strengthening of the baht, according to a leading economist.
Speaking at a seminar on “Economy in 2010: Prosperity or Slump,” Phatra Securities Managing Director Supavud Saicheua said the current sharp baht rise had begun to impact the real economic sector.
Consequently, he believed the government must respond with a definite measure to control the foreign capital influx to prevent the baht from appreciating too rapidly.
However, he said, the measure adopted by the government is aimed to help the real economic sector adjust itself in a timely manner amid the strengthening of the baht.
Mr Supavud said the current baht rise was attributed partly by the capital inflow from Europe to seek investment returns as governments of European countries turned to adopt the monetary policy to stimulate the economy.
Kim Eng Securities Chief Executive Officer Montri Sornpaisarn said currencies of many Asian countries, including Thailand, had strengthened due to their strong fiscal positions, sound capital reserves, and stable financial institutions.
He predicted the Thai economy this year would grow by 7-8 per cent instead of the 4 per cent expected earlier with public debt staying at 50 per cent or below and unemployment lower than 1 per cent.
Mr Montri conceded the interest hike could be adopted to ease the economic heating, but he expected the interest rate would not rise significantly from now on. (MCOT online news)
Speaking at a seminar on “Economy in 2010: Prosperity or Slump,” Phatra Securities Managing Director Supavud Saicheua said the current sharp baht rise had begun to impact the real economic sector.
Consequently, he believed the government must respond with a definite measure to control the foreign capital influx to prevent the baht from appreciating too rapidly.
However, he said, the measure adopted by the government is aimed to help the real economic sector adjust itself in a timely manner amid the strengthening of the baht.
Mr Supavud said the current baht rise was attributed partly by the capital inflow from Europe to seek investment returns as governments of European countries turned to adopt the monetary policy to stimulate the economy.
Kim Eng Securities Chief Executive Officer Montri Sornpaisarn said currencies of many Asian countries, including Thailand, had strengthened due to their strong fiscal positions, sound capital reserves, and stable financial institutions.
He predicted the Thai economy this year would grow by 7-8 per cent instead of the 4 per cent expected earlier with public debt staying at 50 per cent or below and unemployment lower than 1 per cent.
Mr Montri conceded the interest hike could be adopted to ease the economic heating, but he expected the interest rate would not rise significantly from now on. (MCOT online news)
