Financial regulators move to tax and regulate online gold trading as the Thai currency outpaces regional rivals, threatening economic stability.
Thailand’s financial authorities have staged a dramatic intervention to halt the relentless appreciation of the Thai Baht, unveiling a three-pronged strategy aimed squarely at the nation’s booming online gold trade.
The emergency measures were announced during a joint press conference on Tuesday afternoon following an urgent meeting between the Ministry of Finance, the Bank of Thailand (BOT), and the Securities and Exchange Commission (SEC).
The move comes as the Baht outshines its regional peers, fuelled by a weakening US Dollar and record-breaking surges in gold prices.
Ministy of Finance revealed that since the start of 2025, the Baht has strengthened by a staggering 9.4 per cent against the US Dollar.
A primary driver of this volatility is Thailand’s unique relationship with gold.
As gold prices hit historic highs, local gold firms have engaged in massive sales of foreign currency.
The daily volume of gold trading has reached such significant levels that it now rivals the total trading volume of the Stock Exchange of Thailand.
During peak periods, net US Dollar sales from gold companies have accounted for up to 50 per cent of the nation’s total net sales, placing immense upward pressure on the Baht.