Asia Plus Securities (ASP) expects foreign capital to continue to flow into the Thai stock market in the medium to long term despite concerns over additional currency controls that will be announced by the Bank of Thailand on Dec 9.
In November, the central bank already implemented three measures to stimulate baht outflows in the medium to long term, such as the relaxation of regulations to boost overseas investments by Thai investors and requiring foreign traders to pre-register before investing in debentures.
To curb the strengthening baht, the central bank is preparing to introduce additional measures next week that are expected to be less restrictive.
ASP believes the central bank will announce three measures.
First is the use of international currency reserves to stabilise the currency.
Second is restrictions on the volume of foreign financial institutions’…
