How Much Did Thailand Lose In 24 Hours?

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Dec 20 2006
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It’s as expected that the Thailand military appointed government has no other choice but to reverse their earlier decision to impose restrictions on foreign investments to curb speculation on the country’s baht currency. The problem here is the inability of the new government to understand the Basic-101 of economic management – by imposing such a sudden and drastic move, the government was only asking for trouble or committing suicide as foreign investors are very sensitive and hate such immature measure.

But just how much did Thailand lose with such an announcement? Bangkok’s The Nation newspaper headlined an estimated 820 Billion Baht or US$22.9 billion (euro17.3 billion) being wiped out from the SET plunge.

“It was really a big mistake on the part of authorities. It was a policy error. With the interim government, people are wondering what will happen,” said Hak Bin Chua, economist at Citigroup in Singapore, of the decision to stem foreign capital inflows.

It’ll be interesting to see if Thailand equity market can return back to its’ pre-mini-crisis bullishness now the investors have some sort of idea how the country’s economic is being administered.

#TIP : If you have close connection or know of insider news prior to such announcement in future, remember to SHORT the currency or stock market – you can be sure of tons of profit.

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