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Panicked Thai market selling prompts emergency meetings (Update 1)
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.
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.
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