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| KBank Helps Clients Manage Risk After Central Bank Relaxes Rules on Investment in Foreign Countries |
| UPDATE : 3 February 2010 |
The Kasikorn Bank President believes that the relaxed regulations on investment in foreign countries approved by the Bank of Thailand will help stabilize the value of Thai baht, while the capital inflows will require close observation.
Kasikorn Bank President Prasarn Trairatvorakul said the relaxed rules on currency exchange and more freedom for Thai individuals and corporations to directly invest in foreign countries and buy more foreign securities will result in a better balance between the inflows and the outflows of capital and will help reduce factors that could increase the value of Thai baht.
Prasarn added that the capital inflows to Thailand still requires close observation.
However, he commented that the exact extent of effect of the relaxed rules on stabilizing the value of Thai baht remain unknown, as it will depend on the fundamentals of the Thai economy as well.
As for plans to invest outside the country, Prasarn said Kasikorn Bank has taken various factors into consideration.
He added that a good number of clients have already invested in foreign countries and his bank plans to help them manage their investments as well as risks.
Kasikorn bank has set a goal for new credit growth at seven to nine percent. Last year the bank set a goal of 3.5 to four percent.
Political instability remains the most pressing concern as it could deter private sector investment.
KBank Executive Vice President Pakorn Partanapat said that although the Bank of Thailand has relaxed some regulations, Thai exporters should brace themselves for the volatility of currency exchange by employing precautionary measures like trading currency futures with a commercial bank, so exporters can have more control over managing their costs.
Pakorn added that Thai exports will improve in the second and the third quarters of this year. The Thai GDP will grow by 2.5 to 3.5 percent this year. Last year, the Thai GDP dropped by 3 percent.
Pakorn said that political instability remains an important factor that could hinder the recovery of Thai economy.
He urged the Thai government to reinforce the confidence of tourists in Thailand, and give them assurances that there would be no future violence.
On Tuesday, Kasikorn Bank, in cooperation with Work Point Entertainment, launched a new TV game show to promote Thai SMEs, aimed at educating viewers about SME business and marketing strategy.
The game show is the brainchild of Kasikorn Bank, which has continuously promoted SMEs, as the bank considers them to be the main force propelling the Thai economy forward, especially in the tourism industry.
Every year no less than 100,000 new SMEs are set up, but less than half of them succeed.
Kasikorn Bank is confident that this show will provide business know-how to entrepreneurs and help expand the success of SMEs in Thailand.
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