The Bank of Thailand (BoT) has no plan to provide new measures to contain the stronger baht since it believes it is premature to do that, according to Siri Karncharoendee, a member of the Monetary Policy Committee (MPC).
Speaking after a special MPC meeting Tuesday, he said the committee discussed the continued baht appreciation and monitored progress on implementing government measures to curb the currency surge.
“The MPC must wait and see how effective previous state measures can rein in the continued baht rise. The panel believes that it is too early for the central bank to issue new measures to cope with the currency appreciation,†he said.
Amphon Kitti-amphon, another MPC member, said the Cabinet-endorsed measure proposed by the Finance Ministry to remove the exemption of the 15 per cent withholding tax on capital gains for fixed income investments for foreign investors as part of its effort to ease the stronger baht was justified as it could give both local and foreign investors equal and fair treatment in terms of tax collection.
In theory, he believed the move would be able to curb foreign capital influx to some extent, but it takes time to monitor whether the measure is effective.
Currently, he said, the baht is not the most extreme performer in the region, but had strengthened at a lower level than the Malaysian ringgit and the Indonesian rupiah. (PNA/TNA)
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