Thai Authorities Implement Urgent Measures to Tackle Baht Surge

Thailand’s financial regulators are taxing and regulating online gold trading to address the Thai Baht’s rapid appreciation, aiming to stabilize the economy amid record gold prices and currency volatility.

Key Points

• Regulatory Response: Thailand’s financial regulators are implementing a three-pronged strategy to tax and regulate the booming online gold trade to stabilize the appreciating Thai Baht, which has strengthened 9.4% against the US Dollar since early 2025.
• Economic Impact: The Baht’s sharp rise, driven by a weakening US Dollar and soaring gold prices, threatens economic stability. Local gold firms’ foreign currency sales significantly contribute to this volatility.
• Market Dynamics: Daily gold trading volumes now rival the Stock Exchange of Thailand’s, with peak periods indicating that gold companies’ net US Dollar sales make up 50% of the nation’s total, exerting upward pressure on the Baht.

Thai Authorities Implement Emergency Measures Against Baht Surge

BANGKOK, Thailand — In response to a significant appreciation of the Thai baht, authorities announced on Wednesday a series of emergency measures aimed at stabilizing the national currency. The sudden surge, which has risen nearly 10% against the US dollar in recent months, poses potential threats to exports and overall economic growth.

The Bank of Thailand (BoT) revealed that the central bank will introduce measures including increased foreign exchange interventions and preparedness to adjust interest rates if the currency’s upward trend continues. “A stronger baht is creating competitive challenges for our exporters, while also impacting tourism, a vital sector for our economy,” said BoT Governor Sethaput Suthiwartnarueput in a press briefing.

The emergency measures reflect the government’s urgency to support the economy amidst fluctuating currency dynamics as they seek to maintain competitiveness in the global market.

Sources: Bank of Thailand, Reuters, The Economist