Thailand May Lift Capital Controls, RBS Report Says (Update1)
Bloomberg - By Yumi Teso


Nov. 26 (Bloomberg) -- Thailand's central bank may lift its capital controls after national elections on Dec. 23, a move that may boost the currency by about 16 percent next year, Royal Bank of Scotland Plc said in a report.
The Bank of Thailand imposed restrictions in December on foreign investment to curb currency gains, causing the baht to trade at a higher exchange rate overseas than in Thailand. Elections will help revive consumer confidence that has dropped to a five-year low following a military coup in September 2006.
``When they imposed the controls, there was a little bit of political turbulence, and now they are going to elect the new democratic government,'' said Chia Woon Khien, a local markets strategist for non-Japan Asia in Hong Kong at RBS. ``The currency will continue to improve.''
The baht was little changed at 33.82 onshore against the dollar as of 12:02 p.m. in Bangkok, while the currency gained 0.5 percent to 31.18 offshore, according to data compiled by Bloomberg......

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