Aside from the steepest plunge ever in the stock exchange on Tuesday, the central bank was heavily attacked when it had to reverse part of the measure. Now that a week has passed, we are left with an interesting question: why did the central bank believe that December 19 was the perfect time to launch the measure?

Right now we know - at least we think we do - why the central bank came up with such an austere measure. The inflows were too huge to handle, as foreigners believed the baht would strengthen against the US dollar, in line with the strengthening of other East Asian countries. Given the small size of our economy, Thailand has fallen prey to foreign predators who must be punished for their evil intent.

And punished they are, but why on December 19?

Central bankers may have thought that a huge lot of foreign capital inflows was destined for Thailand last week, given that many countries take a long holiday ahead of Christmas. If speculators were to be punished, that was the perfect timing.

Another possibility is that central bankers may have thought that with foreign fund managers already on their long holidays the measure would not raise many complaints.

I kind of believe the second scenario is the more likely. In any year, business activities are thin in the penultimate week of the year, as decision makers prepare to breathe in the New Year's fresh air. Even Bank of Thailand Governor Tarisa Watanagase was preparing to take some days off after finishing her assignment in Chiang Mai.

Too bad that this assumption proved wrong. Foreign investors were still around last week, and they cried foul over the measure. That not only forced Tarisa to get back to work here in Bangkok but also forced many decision makers to forget the New Year's fresh air.

Many in the stock exchange believe now that the January boom effect is just a dream, with foreign investors spooked, and Tarisa must be scratching her head about what to do to regain credibility. She is lucky to have strong backup from Deputy Prime Minister and Finance Minister MR Pridiyathorn Devakula.

In any case, things are unlikely to turn in their favour this week. Both should perhaps go and seek advice from pious Prime Minister Surayud Chulanont, not about how to field criticism, but about the best place to meditate and recoup their strength before the New Year is upon them.

achara_d@nationgroup.com