The Bank of Thailand (BOT) holds a personal grudge against arch hedge fund speculator George Soros and is trying to make him pay a US$4 billion price for attacking the country's currency last month, Thai banking sources say.
A confidential report by a local commercial bank reveals the central bank is maintaining a US$4 billion stranglehold over the multi-billionaire in a bid to exact a punishing financial revenge.
Mr Soros' hedge funds moved into Thailand in the middle of last month when the country was experiencing severe political and economic uncertainty and rumours of a currency devaluation were gathering pace.
It is understood Mr Soros took a US$4 billion three-month forward position on the baht as part of moves to force the BOT to devalue the currency.
The bank reacted by cutting off Mr Soros's access to the currency by closing down the swap market and deliberately creating a two-tier baht exchange system - one onshore and one offshore.
'The main reason the Bank of Thailand closed down the swap market to create a two-tier baht system is to cut off his [Mr Soros's] baht supply until then. They are out to destroy him,' one unnamed source told The Nation .