Thailand Considers Measures on Gold Trading as Baht Surges to Four-Year High

Post by : Saif Nasser

Thailand’s finance ministry is exploring new measures to manage online gold trading after the baht currency surged to its highest level against the U.S. dollar in more than four years. Officials said that unusually large trading volumes of gold are driving the baht’s rapid rise, which is not fully aligned with the country’s economic fundamentals.

Senior finance ministry official Lavaron Sangsnit said the Revenue Department would study the possible imposition of a specific business tax on gold trading conducted through online platforms. Authorities are also considering ways to limit the volume of gold trading to prevent excessive market influence.

Central Bank Governor Vitai Ratanakorn explained that the baht’s gains have been fueled by “huge” gold trading volumes. He added that the central bank would manage online gold transactions and set maximum trading limits for major traders to control the rapid currency appreciation.

The central bank has already taken steps to contain the baht’s rise. It has ordered stricter scrutiny of foreign exchange transactions linked to gold trading and instructed commercial banks to closely monitor foreign currency inflows. These actions aim to stabilize the baht and prevent further distortions in the financial market.

Finance Minister Ekniti Nitithanprapas highlighted that the strong baht is harming Thailand’s economy. A rapidly appreciating currency can make Thai exports more expensive for overseas buyers, reduce tourism spending, and affect overall economic growth.

By controlling online gold trading and monitoring large transactions, Thailand hopes to stabilize the baht while ensuring that the currency reflects the country’s economic realities. Officials emphasized that these measures are meant to protect the economy and maintain financial stability, without restricting normal market activity.

The situation underscores how digital platforms and speculative trading can influence national currencies. Authorities in Thailand are acting quickly to manage the situation and prevent long-term economic imbalances.