Currency trading keep on gaining popularity among successful economists all over the world. Crisis in Euro-zone caused a lot of issues, so now experts recommend to pay attention to the South-East Asia. And there is one huge reason for this – democracy does not work in proper way. Most of countries of the SEA-region are ruled by single party or by dictators, but still they grow economically. This states clearly understand the importance of foreign money and they can give the most acceptable terms for investors. But we would like to take a closer look on the advantages of Thai financial system in particular.
Don’t bite the hand that feeds you
Most of you may here about the collapse of Thai baht that took place in the 2015. It was caused by new regulations for foreign investors – they get an ability to withdraw their money from the country without any consequences. The experts were sure that such an event will support the capital outflow, but it was a mistake. Shareholders and other people who had invested in Thai currency prefer to save their investments in 70% of cases.
This historical decision had one serious advantage – investors and sponsors could not get the money itself, they may only transfer it to another country as trading investments, not as direct payments. It means that country and government still play important role in the process, they can control the economic flow and benefit from such operations because of the role of broke. It’s smart move, isn’t it?
It was not the first, and, of course, not the last step forward. Thailand is prosperous country and government does not need to worry about the national currency. Two month ago foreign citizens got the special tax terms in case of purchase of real estate. The amount of the deposit in dollars or yen was increased too. But still, Thai baht remains the best option for the financial operations on the domestic market.
The death of the King in 2016 should become another test for the currency. News about his health had dropped Thai baht for about 2%. Central Bank of Thailand underlined that government is ready for currency fluctuations, so investors should not worry about the situation. The word was kept: in five days Thai baht showed 0,5% growth, in 25 days it got 1,2% advantage over the previous course.
We would like to recommend Thailand as the best country for direct currency trading investments in South-East Asia. But before the start you should ensure that you understand all the risks of shareholding.