BoT reports capital outflows due to political turmoil

BANGKOK, 16 May 2010 (NNT) – The Bank of Thailand (BoT) has reported some capital outflows, saying foreign investors have started selling Thai baht and buying more US dollars due to growing concern over the domestic political turmoil.

As explained by BoT Assistant Governor for Financial Market Operations Group, Suchada Kirakul, the capital outflow is obviously seen following the political unrest; however, the amount of money transferred out of the country is still insubstantial while the capital inflow also becomes less.

The baht currency is also reported to be depreciating in line with the falling euro and a more intense political situation.

Ms Suchada however confirmed that the BoT would not interfere with or make any special currency control for the time being because the baht fluctuation is still in the manageable level.

Thai baht on 14 May was reported to depreciate continuously following the domestic political impasse and depreciating Euro.