Thailand has imposed stiff penalties on anybody putting foreign currency into Thailand, and then taking it back out of Thailand within a certain period of time. This would mean that if you put US$50,000 into the Thai stock market, you can't snatch it back out immediately.Apparently it is considered by most to be a rather severe effort:
Sriyan Pietersz, head of research at JP Morgan, said: “It’s like hitting an ant with a sledgehammer. It will probably be helpful in achieving their goal, like getting pressure off of the baht, but it’s a very broad instrument because you are pounding equity investors as well.”Indeed. Well, I hate to say it, but maybe it will work too well, and the Baht will collapse, making me once again a rich man here. (I get paid in dollars, and with the baht having gone from 42 to the dollar to 35 to the dollar, my income — as measured in baht, which is what I spend — has gone down considerably as well.)
UPDATE:
The Thai stock market dropped 12% in morning trading. Investors must have been reading ThaiVisa.com, where people are debating whether or not ATMs are going to be spitting out 30% less cash because of the new currency laws. (Smarter people obviously know the answer to that.)
Trading has been suspended for the day, although if the policy set forth regarding cash investments in Thai currency continues tomorrow, more drops should be expected. Today, so far, the baht has gone from 35.1 per dollar to 35.9 to the dollar. That's a 2.2% pay raise in 1 day for me. I wonder what tomorrow will bring? Right before payday this coming Friday as well.
C'mon Thailand! Screw it up REAL good! Baby needs a new pair of shoes! Booyah.
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