We’ve been receiving updates from our international custodian regarding the moves made by the BOT and this is the latest. What do we think the impact may be? Perhaps it will reign in some of the strength in the THB but by

BOT is concerned about the rapid appreciation of the Thai Baht which could lead to unfavourable macroeconomic repercussions and has decided to implement the following enhanced measures to mitigate impact of short-term speculative flows and increase the reporting requirements for non-residents’ holdings of debt securities:-

  1. Measures to Prevent Thai Baht Speculation
    The day end balances limit in each Non-resident Baht Account (NRBA) and Non-resident Baht Account for Securities (NRBS) accounts belonging to non-residents will be reduced from THB300 Million to THB200 Million with effect from 22 July 2019.
  2. Enhanced Reporting Requirements for Non-resident Holdings of Debt Securities
    The names of end beneficiaries of Thailand debt securities held by non-residents will need to be reported to BOT with effect from July 2019 reporting period. This measure will help to enhance BOT’s surveillance of non-residents’ investment behaviors.

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