Thailand will not resort to capital controls to stem the outflow of hot money from its economy, even as the prospect of a scale-back in U.S. monetary stimulus looms ever larger, Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong told CNBC.
Thai markets, together with emerging-market peers, have been left on tenterhooks since May when Federal Reserve Chairman Ben Bernanke first mooted the idea of reducing the central bank's $85 billion-a-month bond-buying program, which investors fear could trigger a massive outflow of funds from risk assets.
According to official estimates reported by local media, foreign equity investors have pulled out a net $3.9 billion dollars from the country so far this year. The selling in recent weeks was exacerbated by widespread protest over an amnesty bill that has stoked concerns over political instability.
Kittiratt said he was not overly concerned about the exodus of funds.