It also discusses the central bank’s experiences with undertaking foreign exchange operations under an inflation targeting regime, as well as considerations on capital flow management measures with regard to their effectiveness. In addition, the paper addresses the implications of the FX intervention and sterilization on the economy, the financial system and the Bank of Thailand’s balance sheet. Keywords: Bank of Thailand, exchange rate policy, foreign exchange market, intervention, sterilization, instruments JEL classification: O24, G23