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| Version 1 | Version 2 |
|---|---|
| Thai stocks down after bank move | Thai stocks down after bank move |
| (about 1 hour later) | |
| Thai stocks fell to their lowest in two years as foreign investors led selling in response to Bank of Thailand moves designed to halt currency speculation. | Thai stocks fell to their lowest in two years as foreign investors led selling in response to Bank of Thailand moves designed to halt currency speculation. |
| The moves mean 30% of non-trade related foreign exchange sold for local baht currency must be deposited interest free with the central bank for a year. | The moves mean 30% of non-trade related foreign exchange sold for local baht currency must be deposited interest free with the central bank for a year. |
| The idea is to deter speculators from flooding the market and prevent further rises in the value of the Thai baht. | The idea is to deter speculators from flooding the market and prevent further rises in the value of the Thai baht. |
| The rising currency had threatened the country's export industries. | The rising currency had threatened the country's export industries. |
| Historic fall | Historic fall |
| The SET stock market index ended morning trading 11.76% down. It had earlier been suspended for half an hour after falling 10%. | The SET stock market index ended morning trading 11.76% down. It had earlier been suspended for half an hour after falling 10%. |
| The bank is to meet brokers and asset management firms to discuss its moves, which also include a rule that requires all new foreign investments over $20,000 to stay in the country for at least a year. | |
| The SET fall of 85.89 points was the biggest one day drop in its 31-year-history. | The SET fall of 85.89 points was the biggest one day drop in its 31-year-history. |
| The central bank's decision is its third recent attempt to stop currency speculation. | The central bank's decision is its third recent attempt to stop currency speculation. |
| The authorities have felt vulnerable at so much overseas money circulating in the economy as investors have looked to speculate on the markets or baht. | The authorities have felt vulnerable at so much overseas money circulating in the economy as investors have looked to speculate on the markets or baht. |
| Central bank figures showed that up to $950m of foreign capital came into Thailand in the first week of December, up from the average of $300m a week in November. | Central bank figures showed that up to $950m of foreign capital came into Thailand in the first week of December, up from the average of $300m a week in November. |
| Heavy selling | Heavy selling |
| The Stock Exchange of Thailand is to ask the bank to review the measure, but the Bank of Thailand said it was too soon to reconsider its move. | The Stock Exchange of Thailand is to ask the bank to review the measure, but the Bank of Thailand said it was too soon to reconsider its move. |
| Bank assistant-governor Nitaya Pibulratanagit said the fall was due to foreign selling, and that overseas investors should not panic. | Bank assistant-governor Nitaya Pibulratanagit said the fall was due to foreign selling, and that overseas investors should not panic. |
| Meanwhile, Bank of Thailand deputy-governor Atchana Waiquamdee said it was possible that the money would return to the Thai stock market after the heavy foreign selling. | Meanwhile, Bank of Thailand deputy-governor Atchana Waiquamdee said it was possible that the money would return to the Thai stock market after the heavy foreign selling. |
| Dramatic outflows of foreign funds ten years ago led to the Asian financial meltdown which started in Thailand. | |
| The baht, which hit a nine-year high of 35.09 against the US dollar on Monday, weakened to 36.17 early on Tuesday in reaction to the bank moves, but then rose to 35.69 by midday. | |
| The baht, and Thai economy, had been under pressure following September's military coup in the country, but the authorities had moved to reassure markets and investors. | The baht, and Thai economy, had been under pressure following September's military coup in the country, but the authorities had moved to reassure markets and investors. |