Foreign Capital controls to end today

[wowpow]

Foreign capital controls 'to end today'
Bangkok Post Breaking News
(Agencies)
Thailand will lift its remaining controls on capital inflows today, after the finance minister who was their chief supporter announced his resignation.

Bank of Thailand Governor Tarisa Watanagase told the Foreign Bankers' Association on Wednesday night that the controls would be lifted on Thursday, more than two months after the measures were introduced.

"Tomorrow (Thursday), the central bank will have a final review on the measures regarding capital inflows," she said.

"Fully hedged bonds, mutual funds and property funds will be exempted from the 30 percent reserve requirement."

Reserve requirements imposed in mid-December effectively lock up for a year 30 percent of any fund inflows coming into Thailand for financial investment.

The day after the announcement the Thai stock market nosedived 15 per cent, the biggest one-day drop by value in the 31-year history of the bourse, due to panic selling over the currency rules imposed to curb the Thai baht's rise.

The bank was forced to make an abrupt U-turn on some of the requirements, and eased others in the following weeks.

Tarisa's announcement that the remaining requirements would be lifted came just hours after Finance Minister Pridiyathorn Devakula announced his resignation.

Pridiyathorn had defended the reserve rules as a way of helping exporters by trying to weaken the baht, which has gained sharply against the dollar, making Thai products more expensive overseas.

Bangkok Post

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[travelerjim]

The Nation reports:

Foreign investors will be able to skirt Thailand's tough capital control rules
by hedging their investments against future currency fluctuations,
the Bank of Thailand (BoT) announced Thursday.

However, the move fell short of expectations, after the BoT indicated
it would drop a December ruling mandating that 30 percent of all incoming
investment would be held by financial institutions for up to one year.

http://www.nationmultimedia.com/breakin ... d=30028239 .

__________________________

This means the 30% rule will still be policy...be careful when you bring into
Thailand by bank SWIFT or wire transfer large amounts of currency.

Be sure to note on the transfer the funds are "for living expenses"
or "for purchase of real estate" if you are doing so with the funds.

Ask your bank about the policy and the amount you
are transferring to Thailand before you do so.

From readings on www.thaivisa.com on this subject -
it appears that up to US$20,000 is OK to wire or SWIFT transfer
to your bank account with note that the funds are
"for living expenses"....larger amounts - I suggest you ask your bank.

Also it appears you can transfer smaller amounts under $20,000
in several transfers and not face the 30% rule.

I transferred two times last week from my CitiBank bank account in USA to
Bangkok Bank - New York for deposit into my Bangkok Bank Pattaya Savings Account...
"for living expenses" in Thailand.

I went on-line on Wednesday Feb 20th and directed my bank to do the transfer
and Bangkok Bank showed my transferred balance in my account the evening of
the next day Thursday Feb 21st...great service.

Did the same thing on Thursday Feb 21st ...and the transferred amount appeared in my Bangkok Bank
Savings Account the next day Friday Feb 22nd.

Cost for each transfer was US $18.75 charged by CitiBank ...US $5.00 charged by Bangkok Bank New York...
and 500 baht charged by Bangkok Bank Pattaya.

Thank you CitiBank...and Bangkok Bank :-)

But again, I encourage you to be sure to check with your bank to protect yourself.
It would be a shame to have 30% of the amount you transfer
to Thailand be held as unavailable for withdrawal for 12 months.

TJ