One of the concerns for foreign investors in any country is the ability to repatriate their investments (Capital Repatriation) after the investment is completed. However, a potential issue is that the government of that country may not have sufficient foreign exchange reserves (Foreign Exchange Reserves) to allow investors to convert from the local currency to an international currency for repatriation.

          A variable that can serve as an indicator of the risk that a country may or may not have enough foreign exchange reserves for investors to repatriate is the amount of foreign exchange reserves that must 1) increase steadily and 2) remain stable.

          Here, we use the amount of foreign exchange reserves expressed in terms of months of imports, which serves as an indicator of the size of that country's economy. This is because some countries may have large reserves but also high expenditures. The results are presented in a graph to compare the potential of Thailand, Indonesia, Cambodia, Myanmar, and Vietnam.

          The graph shows that Myanmar and Vietnam have a high risk that investors may not be able to repatriate their investments due to the volatility of their foreign exchange reserves compared to the foreign currency needed. This may manifest in the form of 1) insufficient reserves, 2) restrictions on capital outflow due to a shortage of reserves, and 3) depreciation of the local currency. Therefore, investors should carefully consider these issues before making an investment.

Thank you for the information from www.supalai.com