Thailand Intervenes to Curb Baht’s Surge, Probes Gold Exports to Cambodia
After baht strengthens eight percent this year, central bank considers measures including tax on gold trading; anomaly in exports to Cambodia triggers investigation
Thailand’s central bank has stepped in to slow the baht’s sharp appreciation, which has reached its strongest level in around four years, citing threats to key economic sectors like exports and tourism.
Assistant Governor Chayawadee Chai-anant said the bank is “closely monitoring and managing” currency moves, referencing rising foreign reserves as evidence of intervention.
The baht stood near thirty-one point eight seven per U.S. dollar and has gained about eight percent since the start of the year.
The new government under Prime Minister Anutin Charnvirakul is collaborating with the central bank to scrutinize both capital inflows and gold-trading activity for any irregularities.
Finance Minister Ekniti Nitithanprapas emphasised that while the baht’s strength is driven by a weak U.S. dollar, current account surpluses, and gold trade, there is no firm plan yet to impose a gold tax—though that option remains under discussion.
Gold exports form a growing part of concern: in the first seven months of 2025, Thailand’s gold shipments rose by about eighty-two percent year-on-year to approximately seven point six billion U.S. dollars, including nearly two point one billion exported to Cambodia.
This surge has drawn scrutiny from government, industry groups, and customs officials.
Prime Minister Anutin has ordered an investigation into the unusually high gold exports to Cambodia.
He tasked Finance Minister Ekniti with leading the probe and pledged that if any illegal activity is uncovered, legal action will follow.
Across the private sector, industrial sentiment has tumbled to its lowest level in more than three years in August, reflecting worries that the baht’s strength, rising U.S. tariffs, and political uncertainty may undermine competitiveness.
Key export sectors are said to be at risk if the baht continues to hamper pricing in global markets and reduce appeal for tourists.
The Bank of Thailand is evaluating several tools to stabilize the currency besides a gold tax.
These include promoting gold transactions denominated in U.S. dollars and enhancing oversight of inflows.
Incoming central bank governor Vitai Ratanakorn, beginning October first, may play a crucial role in shaping enduring policy responses as the government seeks to protect economic stability amid global headwinds and regional currency volatility.
Assistant Governor Chayawadee Chai-anant said the bank is “closely monitoring and managing” currency moves, referencing rising foreign reserves as evidence of intervention.
The baht stood near thirty-one point eight seven per U.S. dollar and has gained about eight percent since the start of the year.
The new government under Prime Minister Anutin Charnvirakul is collaborating with the central bank to scrutinize both capital inflows and gold-trading activity for any irregularities.
Finance Minister Ekniti Nitithanprapas emphasised that while the baht’s strength is driven by a weak U.S. dollar, current account surpluses, and gold trade, there is no firm plan yet to impose a gold tax—though that option remains under discussion.
Gold exports form a growing part of concern: in the first seven months of 2025, Thailand’s gold shipments rose by about eighty-two percent year-on-year to approximately seven point six billion U.S. dollars, including nearly two point one billion exported to Cambodia.
This surge has drawn scrutiny from government, industry groups, and customs officials.
Prime Minister Anutin has ordered an investigation into the unusually high gold exports to Cambodia.
He tasked Finance Minister Ekniti with leading the probe and pledged that if any illegal activity is uncovered, legal action will follow.
Across the private sector, industrial sentiment has tumbled to its lowest level in more than three years in August, reflecting worries that the baht’s strength, rising U.S. tariffs, and political uncertainty may undermine competitiveness.
Key export sectors are said to be at risk if the baht continues to hamper pricing in global markets and reduce appeal for tourists.
The Bank of Thailand is evaluating several tools to stabilize the currency besides a gold tax.
These include promoting gold transactions denominated in U.S. dollars and enhancing oversight of inflows.
Incoming central bank governor Vitai Ratanakorn, beginning October first, may play a crucial role in shaping enduring policy responses as the government seeks to protect economic stability amid global headwinds and regional currency volatility.
