Thailand's currency war

The Thai finance ministry has slapped a tax on foreign bond investors in a bid to defend its currency.

Thailand is sensitive about its currency. Ever since the baht crisis matured into the Asian financial crisis in 1997, it has been paranoid about falling into the same trap, which has prompted it on several occasions to take bold action to protect its currency.

In mid-October, it did so. The finance minister, Korn Chatikavanij, made it more expensive for foreign investors to buy Thai government bonds in a vain bid to curb the baht’s relentless appreciation. Effective immediately, the...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Print Edition

FinanceAsia Print Edition