No irregular capital outflow after Japan quake

BANGKOK, 15 March 2011 (NNT) – The Bank of Thailand (BoT) has reported that there has been no sign of capital outflow from the Asian region after Japan was struck by one of the most severe earthquakes plus several aftershocks and a deadly tsunami on Friday afternoon.

BoT Assistant Governor for Financial Markets Operations Group Pongpen Ruengvirayudh reported that the BoT has not seen any sign that investors are shifting their capitals away from the Asian region to avert risk to other assets with more safety.

Ms Pongpen reasoned that capital transfers are not expected because the deadly natural disaster ravaged only Japan while no other countries are affected.

As for movement of the Japanese yen currency, the assistant governor stated that the yen’s activities do not have much relationship with the Thai baht, unlike in the past.

Many sides are worrying that Japan will slow down its foreign investment in order to save its funds to rehabilitate itself before considering investment abroad.