Bank of Thailand kicks off new rules to 'protect' currency

Companies will be listed in the local stock market to purchase overseas securities and derivatives.

According to BBVA Research, the Bank of Thailand (BOT) announced today it will ease overseas investment rules in order to facilitate capital outflows, a sign that the central bank may be concerned about currency appreciation in light of strong global liquidity.

Here's more from BBVA Research:

The new rules include allowing companies listed in the local stock market to purchase overseas securities and derivatives, while Thai residents will be able to buy foreign-currency bonds issued in Thailand. The new rules will take effect this Thursday.

Today’s announcement follows a surprise cut in interest rates by the BOT last week, and should help ease appreciation pressures on the baht.