Thailand will not resort to capital controls to stem the outflow of hot money from its economy, even as the prospect of a scale-back in U.S. monetary stimulus looms ever larger, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong told CNBC.
Thai markets, together with emerging-market peers, have been left on tenterhooks since May when Federal Reserve Chairman Ben Bernanke first mooted the idea of reducing the central bank’s $85 billion-a-month bond-buying program, which investors fear could trigger a massive outflow of funds from risk assets.
According to official estimates reported by local media, foreign equity investors have pulled out a net $3.9 billion dollars from the country so far this year. The selling in recent weeks was exacerbated by widespread protest over an amnesty bill that has stoked concerns over political instability.
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