KBank chief supports 4 baht measures
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Kasikorn Bank president Predee Daochai extended his support to the 4 measures to tackle the baht appreciation, saying that these measures would render a good result without scaring investors.
He said that the measures are apparently a result of cooperation between the Finance Ministry and Bank of Thailand. A policy mix is favourable, he added.
He added that as long as Thailand is an open economy, where capital flows are not limited, the measures would not create harsh impacts on foreign investment.
The longer bond-holding period requirement would limit volatility in the exchange rate movement, he said.
The 4 options
1. Bar foreign purchases of BOT bonds or set minimum holding period
2. Bar foreign purchases of short-term government bonds or state enterprise bonds, with 3-6 months of maturity
3. Levy a charge on foreign bond purchases
4. Impose compulsory hedging to limit foreign investors' gain in exchange rate movement
