A brief Financial Times blog post worth checking out: Thai capital controls: more to come:
The Thai government’s attempts to relieve the upward pressure on the baht by reinstating a 15 per cent withholding tax on foreign bond holders has had little intended effect so far. On Tuesday the baht continued its inexorable climb hitting Bt29.82 after opening at Bt29.92, an increase of 0.3 per cent on the day.
Now, it looks as though government officials may be considering an additional tax on short-term fund flows, following the lead of their Brazilian counterparts.
The baht has appreciated by nearly 11 per cent against the dollar so far this year, rattling the exporters who account for 65 per cent of GDP.