PDA

View Full Version : Panicked Thai market selling prompts emergency meetings



FRED
12-19-06, 07:20 AM
Panicked Thai market selling prompts emergency meetings (Update 1) (http://www.abc.net.au/news/newsitems/200612/s1815068.htm)
December 19, 2006 (ABC News Online)

Thailand's most senior financial figures are holding emergency meetings with foreign investment firms after panic selling at one stage forced the stock exchange down almost 14 per cent.

So far today, more than $200 million in value has been lost at the Stock Exchange of Thailand after foreign investors pulled out of the equities market.

They were reacting to limitations place on currency trading yesterday by the Bank of Thailand.

The central bank has threatened to fine investors 30 per cent of their currency holdings unless they keep their funds in Thailand for more than a year.

The measures are designed to control the flow of international capital, in order to prevent further speculation on the baht which has risen more than 10 per cent in value against the US dollar this year.

The events of the past day are a stark reminder of the 1997 Asian Economic Crisis which was blamed on currency speculators playing the baht and other regional currencies.

AntiSpin: Financial market crisis usually start at the periphery of the system. We'll track this story closely today.

spunky
12-19-06, 07:42 AM
Oh , how I miss Pattaya Beach . Damn weak dollar and strong pound to many drunk brits running the streets now :D

jk
12-19-06, 10:27 AM
The events of the past day are a stark reminder of the 1997 Asian Economic Crisis which was blamed on currency speculators playing the baht and other regional currencies.

1997 was a little different: then it was the baht that was going down. now they're intervening to prevent it from rising too much against the dollar.


Financial market crisis usually start at the periphery of the system.

in 1997 the crisis indeed started at the periphery, with weakness in baht. it's a bit odd to say this, now, is a crisis at the periphery, since the problem is weakness in the u.s. dollar. i guess we can say the the symptoms of the dollar's weakness are popping up in this relatively remote corner of the financial system.

sparki
12-20-06, 02:33 AM
http://www.bloomberg.com/apps/news?pid=20601087&sid=atJ7nkqTz9c0&refer=home

Thailand Abandons Limits on Foreign Stock Investments (yesterday)

http://www.bloomberg.com/apps/news?pid=20601087&sid=au3cdzhFQhWA&refer=home

Thai SET Rebounds From Yesterday's Slump: World's Biggest Mover (today)

stocks up today around 10%