Bank of Thailand places constraints on capital inflows

Bank of Thailand (BOT) announced that 30% of all capital inflows into the country for the purpose of investments would have to be kept in reserve with the central bank.

Bank of Thailand (BOT) announced that 30% of all capital inflows into the country for the purpose of investments would have to be kept in reserve with the central bank. The funds would be released on providing proof of investment of the balance funds. Funds withheld by BOT can be taken outside the country only after a one-year lock-in period. If the funds would have to be taken out under the one-year lock in period; BOT only two-thirds of the amount withheld will be returned to investors. BOT has taken this step as a measure to curb inflow of funds which has resulted in a strong Baht.