ID :
143963
Tue, 09/28/2010 - 10:07
Auther :
Shortlink :
http://m.oananews.org//node/143963
The shortlink copeid
More measures expected to contain capital inflow, says fund manager
BANGKOK, Sept 28 – TheThai government should impose added measures to control the foreign capital influx, or the current financial uncertainties will continue unabated, according to a top fund manager.
Pichit Akrathit, Executive Director and President of MFC Asset Management Pcl, said Bt160 billion in foreign capital had flowed into Thailand since early this year, resulting in the continued appreciation of the baht.
He said that foreign capital had overwhelmed Asia since the United States adopted a low interest policy in the hope of reviving its ailing economy. The move caused capital to flow into the region, particularly Thailand.
Mr Pichit conceded the interest hike could help slow the foreign capital inflow, but the Bank of Thailand remained hesitant to do that because it is concerned about rising inflation.
He warned that monetary policy alone is unable to contain the volatility of the currency exchange rate and inflation rates, and that the government must adopt a fiscal policy to oversee the fluctuations as well.
This could be seen in the government’s measures to encourage Thai investors to expand their investment overseas, and manufacturers to accelerate buying raw materials for production for export.
Given the continued capital inflow, Mr Pichit believed the government would issue more measures to control it. But they would be as severe as those in the past. One possible measure is to raise the tax on remittances, he said. (MCOT online news)
Pichit Akrathit, Executive Director and President of MFC Asset Management Pcl, said Bt160 billion in foreign capital had flowed into Thailand since early this year, resulting in the continued appreciation of the baht.
He said that foreign capital had overwhelmed Asia since the United States adopted a low interest policy in the hope of reviving its ailing economy. The move caused capital to flow into the region, particularly Thailand.
Mr Pichit conceded the interest hike could help slow the foreign capital inflow, but the Bank of Thailand remained hesitant to do that because it is concerned about rising inflation.
He warned that monetary policy alone is unable to contain the volatility of the currency exchange rate and inflation rates, and that the government must adopt a fiscal policy to oversee the fluctuations as well.
This could be seen in the government’s measures to encourage Thai investors to expand their investment overseas, and manufacturers to accelerate buying raw materials for production for export.
Given the continued capital inflow, Mr Pichit believed the government would issue more measures to control it. But they would be as severe as those in the past. One possible measure is to raise the tax on remittances, he said. (MCOT online news)
