Thailand is preparing to introduce a series of measures aimed at regulating its burgeoning gold trading market amid a sharp appreciation of the Thai baht that officials say is out of step with underlying economic fundamentals.

Policy makers from the Finance Ministry and the Bank of Thailand have publicly discussed the need for greater oversight of gold transactions after the baht strengthened by around ten per cent against the U.S. dollar this year, reaching its highest level in more than four years.

Authorities attribute much of this currency rally to unusually large volumes of gold trading, particularly in baht-settled trades, which can create significant foreign exchange flows that affect the broader economy.

The finance ministry said it will study the potential imposition of a specific business tax on online gold trading and consider measures to limit transaction volumes conducted via digital platforms.

Central Bank Governor Vitai Ratanakorn emphasised that unusually high gold trading activity has been a primary driver of baht volatility and that new limits on large gold dealers’ operations are under consideration, with the central bank stepping up scrutiny of related foreign exchange transactions.

Officials have also called for enhanced reporting requirements for traders, with strengthened monitoring of forward foreign exchange dealings tied to gold sales.

The moves form part of a wider effort to balance currency stability with economic growth, as Thailand’s export and tourism sectors face pressure from the baht’s strength, prompting calls for tighter coordination between fiscal and monetary authorities and more structured oversight of gold-linked capital flows.