Thailand may lift its capital controls after acknowledging that they have failed to slow the appreciation of the baht against the dollar, according to Bank of Thailand Governor Tarisa Watanagase. Tarisa said that capital inflows into Asia had caused the baht to appreciate 4.3 percent against the dollar this year, after gaining more than 8 percent against the currncy in 2006. She said the central bank was considering lifting the 30 percent capital reserve requirement put in place at the end of last year, in an effort to stem speculation on the baht. Some worry that the strong baht will have an impact on the country's export sector, which has become more important to the Thai economy as investments and consumer spending have both declined of late.
DPA