A reexamination of capital controls' effectiveness: Recent experience of Thailand

► We investigate the impact of the capital control (URR) in Thailand. ► We find that it was incompletely effective in stabilizing the Thai currency. ► The reductions in total amount and altering its composition of capital inflows. ► Limited impact on the stock market as foreign equity investment was exempted from the measure. ► Adverse effects: a wider spread between onshore and offshore rates, a bearish market sentiment, an obstacle to the debt market development, and a negative effect on the credibility of the Monetary Authority.