ID :
150171
Wed, 11/17/2010 - 09:54
Auther :
Shortlink :
http://m.oananews.org//node/150171
The shortlink copeid
Central bank mulls pros and cons of tougher measure to curb inflows
BANGKOK, Nov 17 – Bank of Thailand (BoT) Deputy Governor Atchana Waiquamdee Tuesday conceded the central bank is considering pros and cons if it decides to take tougher action to contain foreign capital inflows.
She said the bank needed to take into account impacts of the measure on the country in the long run.
The bank had not spared any effort to make local interest rate move as it should be, she said. BoT is worried that the actual interest rate remains negative at present because it could have a long term negative impact.
She said Thailand, like many other countries, was pondering issuing a strict measure to control foreign capital inflows. One option is to impose taxation on foreign capital flowing into the country.
However, the bank must consider with great caution advantages and disadvantages the country would derive from the measure.
“There is no evidence that [any] measure to control the capital inflows can reduce the capital inflows efficiently. As long as people attempt to seek legal loopholes, it is hard to contain the inflows.
“The strict measure to control the capital inflows, if taken, could [negatively] affect the economy in the long run,” said Mrs Atchana.
The deputy BoT chief said the central bank prepared many measures to supervise the capital influx. How tough the measures are depends on the situation in a particular time. (MCOT online news)
She said the bank needed to take into account impacts of the measure on the country in the long run.
The bank had not spared any effort to make local interest rate move as it should be, she said. BoT is worried that the actual interest rate remains negative at present because it could have a long term negative impact.
She said Thailand, like many other countries, was pondering issuing a strict measure to control foreign capital inflows. One option is to impose taxation on foreign capital flowing into the country.
However, the bank must consider with great caution advantages and disadvantages the country would derive from the measure.
“There is no evidence that [any] measure to control the capital inflows can reduce the capital inflows efficiently. As long as people attempt to seek legal loopholes, it is hard to contain the inflows.
“The strict measure to control the capital inflows, if taken, could [negatively] affect the economy in the long run,” said Mrs Atchana.
The deputy BoT chief said the central bank prepared many measures to supervise the capital influx. How tough the measures are depends on the situation in a particular time. (MCOT online news)
