February 13, 2008
BANGKOK - Thailand will keep the controversial currency controls for now, according to Finance Minister.
"There is no decision about the fate of the currency controls yet. We need to get more information from the Bank of Thailand," Surapong Suebwonglee told a news conference after a meeting with Central Bank Governor Tarisa Watanagase.
Surapong and Tarisa discussed economic measures, including whether to lift the capital controls to curb the baht's rise against the dollar, according to AFP.
After their lengthy meeting, the two decided to keep the stringent currency measures for now.
Surapong, one of the closet allies of ousted premier Thaksin Shinawatra, took office last week. Tarisa declined to talk to reporters.
Investors and business leaders warned that lifting the currency controls could further strengthen the baht and hurt the exporters.
The baht is already at 10-year highs against the dollar.
Exports are a key engine of the Thai economy, accounting for more than 60 percent of Thailand's gross domestic product.
The capital controls required 30 percent of all incoming investment to be held by financial institutions for up to one year.
