Investment rules clarified
The Bank of Thailand yesterday announced further clarifications to its controls on short-term capital inflows to serve as a reference for financial institutions in following the 30-per-cent reserve requirement.
Included in the exemptions from the reserve requirement are investments in real estate such as land and condominiums, but not real-estate mutual funds; travellers' cheques and bank notes; donations, funds to foreign embassies and government agencies' borrowings. Subject to the reserve requirement are investments in debt securities transacted from December 19 onwards, foreign-currency borrowings transacted from the same date onwards and all other foreign inflows. The central bank also clarified that balances in excess of Bt300 million in non-resident baht accounts would be allowed only until January 8. From January 8 onwards, balances in the special non-resident baht accounts for securities (SNS), which are opened for investment in the stock and futures exchanges will not be allowed to exceed Bt300 million. The central bank said it would continue to review this limit.
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