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Thailand Targets Gold-Fueled Baht Surge With Tax Study and Trading Caps

Officials say heavy online gold flows have pushed the currency beyond fundamentals.

Overview

  • The baht has risen about 10% this year to its strongest level since mid-2021, topping Asia’s currency rankings.
  • The Finance Ministry will have the revenue department study a specific business tax on online gold trading and consider limits on trade volumes.
  • Central bank governor Vitai Ratanakorn said gains stem from huge gold transactions and plans to manage online platforms with maximum volumes for major traders.
  • The Bank of Thailand has ordered tighter scrutiny of FX transactions tied to gold and told commercial banks to closely monitor foreign currency inflows.
  • A joint briefing by the central bank, finance ministry, and securities regulator was scheduled Tuesday as gold hovers near record highs and Thailand’s gold exports jumped 52% to $11.6 billion through October.