Central bank tightens gold-trading controls to curb baht strength
Thailand’s monetary authorities are preparing tougher supervision of gold trading after data flagged it as a key source of upward pressure on currency, while related steps are being rolled out to address factors behind recent baht appreciation.
- Thailand's central bank is tightening controls over gold trading to address the strengthening of the nation's currency, the baht.
- The Bank of Thailand (BOT) has already issued one notification requiring the reporting of gold-trading activity.
- A second, stricter measure to increase oversight of gold trading is currently being prepared by the central bank.
- These actions are being taken because gold trading has been identified as a key factor putting upward pressure on the baht's value.
Finance Minister Ekniti Nitithanprapas has given an update on measures to address the strengthening the baht, after parts of the private sector raised concerns that the currency has appreciated beyond what Thailand’s economic fundamentals can support.
He said the Bank of Thailand (BOT) has already issued one notification focused on reporting gold-trading activity on platforms, and is preparing a further, stricter measure to tighten oversight of gold trading.
The move follows reporting that points to gold trading as a key factor behind upward pressure on the baht.
On the fiscal side, Ekniti said the Ministry of Finance has already rolled out related measures and is working closely with relevant agencies.
The steps are intended to tackle factors affecting the exchange rate, to keep baht movements at an appropriate level.
Ekniti also referred to planned updates to the Comptroller General’s Department (CGD) regulations, which would require a new announcement to be signed before it takes effect.
The goal is to reduce risks and prevent accidents in state construction projects, including the introduction of a “contractor record book” system.
Providing a progress report, Patricia Mongkhonvanit, Director-General of the Comptroller General’s Department, said the revised regulation is expected to take effect no later than early February.
She said the key areas covered include rules for construction projects worth 5 million baht or more, building construction projects, and projects under agency contracts valued at THB1 billion or more.
All related items are currently being submitted for consideration ahead of signing and formal implementation.
