Central bank governor Tarisa Watanagase said that the lift will be effective from Monday.

"The central bank decided to lift the capital controls because of the improving economic situation," she said.

The controls were imposed during the Surayud Chulanont administration in an attempt to control the appreciation of the baht against the dollar.

The controls required 30% of all incoming investments to be held by financial institutions for up to one year.

BOT revokes capital control measure

The Bank of Thailand eventually decides to scrap the 30 per cent capital reserve requirement, effective on Monday.

The measure has been in place since December 18, 2006.

Ahead of the press conference at 4pm, Amara Sriphayak, senior director of the bank's domestic economy department, on Friday said that many factors support the removal.

"There are many factors supporting the removal of the capital controls but we need to wait and see how to remove them and when," she said.