Thailand Tightens Gold Trading Oversight, Mandates Reporting to Central Bank for Major Dealers
Bank of Thailand requires gold traders with large annual turnover to report transactions and retain records as part of efforts to manage baht strength
Thailand’s central bank has introduced new regulatory requirements for large gold traders, mandating that dealers with average annual transactions of at least ten billion baht over the past five years report their trading activity to the Bank of Thailand and retain detailed records for a minimum of three years.
The directive, published in the official Royal Gazette and effective immediately, forms part of a broader strategy to address the rapid appreciation of the Thai baht, which authorities have linked in part to substantial flows in the gold market and online trading platforms.
Thailand’s currency has strengthened significantly against the US dollar, gaining around one per cent this year following a nine per cent increase in 2025, prompting concern that a strong baht could undermine export competitiveness and weigh on key sectors such as tourism.
Bank of Thailand Governor Vitai Ratanakorn has signalled complementary measures to complement the reporting requirements, including planned caps on daily trading volumes conducted through digital platforms, likely set between fifty million and one hundred million baht.
The central bank has also engaged with the Ministry of Finance and gold industry stakeholders to clarify the new guidelines and the purposes of enhanced oversight.
Officials emphasise that the reporting regime will enable better assessment of capital flows tied to gold trading and support broader monetary and financial stability objectives.
Commercial banks and trading platforms are expected to assist in implementing the guidelines, which align with concurrent policy efforts to monitor unusual foreign exchange transactions and strengthen transparency across financial markets.
Traders subject to the new rules must provide comprehensive transaction data to the central bank upon request and ensure compliance with recordkeeping obligations, subject to regulatory inspection.
Meanwhile, market participants have expressed concerns about the impact of tightened controls on trading liquidity and business costs, even as regulators stress the necessity of such steps to sustain the baht’s stability and protect Thailand’s export-oriented economy.
The directive, published in the official Royal Gazette and effective immediately, forms part of a broader strategy to address the rapid appreciation of the Thai baht, which authorities have linked in part to substantial flows in the gold market and online trading platforms.
Thailand’s currency has strengthened significantly against the US dollar, gaining around one per cent this year following a nine per cent increase in 2025, prompting concern that a strong baht could undermine export competitiveness and weigh on key sectors such as tourism.
Bank of Thailand Governor Vitai Ratanakorn has signalled complementary measures to complement the reporting requirements, including planned caps on daily trading volumes conducted through digital platforms, likely set between fifty million and one hundred million baht.
The central bank has also engaged with the Ministry of Finance and gold industry stakeholders to clarify the new guidelines and the purposes of enhanced oversight.
Officials emphasise that the reporting regime will enable better assessment of capital flows tied to gold trading and support broader monetary and financial stability objectives.
Commercial banks and trading platforms are expected to assist in implementing the guidelines, which align with concurrent policy efforts to monitor unusual foreign exchange transactions and strengthen transparency across financial markets.
Traders subject to the new rules must provide comprehensive transaction data to the central bank upon request and ensure compliance with recordkeeping obligations, subject to regulatory inspection.
Meanwhile, market participants have expressed concerns about the impact of tightened controls on trading liquidity and business costs, even as regulators stress the necessity of such steps to sustain the baht’s stability and protect Thailand’s export-oriented economy.
