The Bank of Thailand has recently cut its benchmark interest rate again.
Down by a quarter-percentage point, the key rate is now at 1.25%.
It was the country's second cut in three months to rein in the stronger Baht, which has gained more than 8% again the US dollar in the past year.
The stronger Baht had an impact on exports and the country’s economy. Starting today, the following measures will be effective:
- Exporters with proceeds below US $200,000 per bill of lading (versus the previous US$50,000) will be allowed to keep proceeds abroad without a time limit.
- Retail investors will be allowed to invest up to $200,000 a year in foreign securities, without being required to invest via a Thai intermediary institution.
- There is no restriction on outward transfers, with the exception for a few specific purposes.
- Thai investors can trade gold in foreign currencies. They were required to do so in Baht before.
Whether or not these measures are effective is not clear, but Thailand has little room to to take actions to curb its surging currency because it’s at risk of being named a currency manipulator in a forthcoming US report.
In addition, the US said recently that it’ll suspend US$1.3 billion in trade benefits to the country.