Thailand’s central bank will impose limits on online gold trading by January 29 to reduce upward pressure on the baht, which has strengthened significantly against the dollar.
Key Details:
- Daily online gold trading will be capped at 50-100 million baht per account
- The baht has gained 1.2% against the dollar this year, following a 9% rise in 2025
- Gold trading and foreign fund inflows have driven the baht’s sharp appreciation over recent days
- The central bank raised the foreign income repatriation threshold from $1 million to $10 million per transaction
- Governor Vitai Ratanakorn noted the bank’s intervention capacity is limited to the onshore market, which represents only 40% of total forex transactions
- A specific business tax on gold trading may be considered after assessing the impact of these measures
Why It Matters:
The baht’s strength threatens Thailand’s export competitiveness and tourism sector, prompting the central bank to implement multiple measures to weaken the currency and align it with economic fundamentals.
