Thai central bank head warns of financial system risk from ultra-low rates

Given a surge in the past decade of capital flows driven by global investors seeking "speculative returns, " emerging economies have become more vulnerable to exchange-rate volatility that hurt their companies, Veerachai (pic) said.

WASHINGTON: Huge global capital flows and prolonged ultra-low interest rate policies of advanced nations have made it harder for emerging economies to protect their financial system, Bank of Thailand Governor Veerathai Santiprabhob said on Sunday.

Given a surge in the past decade of capital flows driven by global investors seeking "speculative returns," emerging economies have become more vulnerable to exchange-rate volatility that hurt their companies, he said.