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Offshore Banks Seek to Bypass Bank of Thailand's Curbs on Speculation.

Bangkok Post (Bangkok, Thailand)

| November 05, 2003 | COPYRIGHT 2003 Bangkok Post. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Darana Chudasri

Nov. 5--Offshore banks are looking to set up a non-deliverable forward market for the Thai baht to help bypass capital controls imposed by the Bank of Thailand to curb speculative trades.

In a non-deliverable forward (NDF) market, no actual exchange of baht currency would be made. Instead, counterparties would net the difference based on baht rates at the settlement date.

Paritat Lerngutai, senior vice-president and treasury head at Kasikornbank, said overseas markets were already discussing the possibility of setting up an offshore market for NDFs.

Many other Asian currencies, including the Taiwanese dollar, the ...

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Source: HighBeam Research, Offshore Banks Seek to Bypass Bank of Thailand's Curbs on Speculation.

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