Outflow inflation derivative

BANGKOK, 28 June 2011 (NNT)-The Bank of Thailand (BoT) has forbidden every commercial bank to provide a service to any investors who could be depositing their money tying to a derivative which is said to help mitigate the effect of potentially large inflations.

The BoT has enforced a new rule preventing investors from resorting to this approach, although the BoT still allows these banks to provide loans with inflation derivatives as long as their services are in accordance with the old principle.