February 5, 2008
BANGKOK - Thailand further relaxed its foreign currency controls, making it easier for individuals and corporations to invest overseas, according to the Central Bank.
The military junta imposed tough currency controls in December 2006 in a bid to a halt the baht's rapid rise against the dollar.
The controls spooked foreign investors and caused the biggest one-day drop in the Thai stock market in late 2006, with losses worth 23 billion dollars, according to AFP.
Many exemptions have since been made to the currency rules, but the general policy remains in place.
In the latest shift, corporations can now invest or lend up to 100 million dollars a year to its overseas subsidiaries. Thai subsidiaries can also invest or lend up to 100 million dollars to parent companies overseas, the Bank of Thailand said.
Corporations listed on the Stock Exchange of Thailand will have no limits on overseas investments or lending with subsidiaries, it added.
The Central Bank also relaxed rules for companies and individuals buying property overseas, allowing real estate investments of up to five million dollars, up from one million dollars.
Thailand's economy has been hit by sluggish consumption and weak business confidence since the coup. The economy grew by 4.5 percent last year, among the slowest rates in Southeast Asia.
Investors are hopeful that the country's new government under Prime Minister Samak Sundaravej, who is set to unveil his cabinet Wednesday, would implement economic stimulus measures.
