Triple Threat: Thai Authorities Launch Emergency Measures to Curb Surge in Baht
Financial regulators move to tax and regulate online gold trading as the Thai currency outpaces regional rivals, threatening economic stability
- Thai financial authorities have launched a three-pronged strategy to stop the Baht's rapid appreciation, which they have identified as being primarily driven by the country's booming online gold trade.
- The emergency measures include requiring online gold platforms to submit transaction data, evaluating a new tax on online gold sales, and considering a "ceiling" on trading volumes.
- The currency's surge is caused by gold companies selling massive amounts of US dollars, while regulators clarified that digital assets and stablecoins were not a significant factor.
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.
The Three-Point Intervention
To decouple the gold market’s volatility from the national currency, regulators have agreed on the following mandates:
Mandatory Data Transparency: The Revenue Department will now require online gold investment platforms to submit comprehensive transaction data. This brings the sector in line with existing electronic platforms for goods and services, allowing for stricter oversight of capital flows.
Specific Business Tax (SBT): Authorities are evaluating the implementation of a Specific Business Tax on the sale of gold bullion via online platforms. This fiscal measure is designed to cool speculative trading that often triggers sudden currency spikes.
Volume Ceilings: The Bank of Thailand is considering a regulatory "ceiling" on gold transaction volumes. By limiting the scale of trades on online platforms, the BOT aims to prevent concentrated bursts of dollar-selling from destabilising the Baht.
Clarification on Digital Assets
Amidst the intervention, the SEC moved to dispel rumours that stablecoin trading was contributing to the currency's strength.
Officials clarified that USDT transactions account for a mere 1.22 per cent of total foreign exchange inflows, and the conversion of USD to Thai Baht by digital asset firms represents just 0.17 per cent of the 29.1 trillion Baht total.
Consequently, digital assets were deemed to have "no significant impact" on the current crisis.
The three agencies have pledged to maintain a "vigilant watch" over the currency markets, warning that further measures may be deployed if the Baht continues to deviate from economic fundamentals.
