BoT weighs cash limits for over-the-counter gold trades

The Bank of Thailand (BoT) is considering limits on cash payments for gold bullion traded at physical shops, as it seeks to improve transaction transparency and reduce the impact of large gold trades on the baht.

The central bank said domestic gold trading had grown to a level at which high-value transactions could significantly affect the exchange rate.

Although customers trading gold through online platforms are already required to make and receive payments electronically, no specific payment method currently applies to over-the-counter transactions at physical gold shops.

This creates risks associated with large cash payments, which could be used for transactions without a clear underlying economic purpose or with funds whose origins cannot be readily identified, according to the BoT.

The proposed changes are intended to strengthen oversight of gold transactions, support exchange-rate stability and improve transparency for both businesses and members of the public.

The figures under consideration are consultation ranges rather than final limits.

Proposed cash-payment limits

For gold bullion transactions between shops and retail customers, the BoT is considering a cash-payment limit of 1 million to 10 million baht per customer, per day, per gold shop or branch.

For gold bullion transactions between gold dealers, the proposed cash-payment limit is 10 million to 80 million baht per dealer, per day, per gold shop or branch.

Transactions above the final cash threshold would therefore be expected to use a traceable payment method, subject to the rules ultimately adopted.

The proposal would also introduce related conditions, including a requirement for customers to take physical delivery of bullion they buy or personally deliver bullion they sell.

Existing gold-trading rules

Thailand’s foreign-exchange control law already regulates gold trading as part of efforts to preserve exchange-rate stability.

Current rules permit domestic gold trading, including forward transactions both inside and outside the Thailand Futures Exchange.

Gold may also be traded overseas, although overseas gold-forward transactions require prior approval from the BoT.

The central bank introduced additional restrictions on domestic online gold platforms earlier in 2026 after finding that transaction volumes had continued to rise and that some large trades had materially affected the exchange rate.

Since March 1, baht-denominated gold purchases and sales through each electronic platform have been capped at 50 million baht per person on each side of the market. The limit does not apply to ordinary transactions at physical gold shops.

Online gold-platform customers must also:

• Use their own accounts to make and receive payments
• Pay electronically rather than in cash
• Settle the transaction in full
• Avoid settlement based only on the price difference
• Take delivery of the gold themselves
• Hold fully paid gold before placing a sell order

The BoT said those requirements were introduced to standardise online gold trading, improve traceability and limit its contribution to baht volatility.

Gold trading and the baht

Thailand’s gold market can affect the currency because major dealers often conduct foreign-exchange transactions when importing, exporting or hedging gold.

When global gold prices rise and domestic investors sell large amounts, dealers may export gold and convert foreign-currency proceeds into baht. Such flows can add upward pressure to the Thai currency.

The BoT has said previous measures covering online gold platforms and transaction reporting by major dealers have helped reduce the correlation between movements in gold prices and the baht from as much as 80% to about 40%, although falling gold prices may also have contributed.

The central bank has also worked with the Anti-Money Laundering Office to strengthen supervision of unusually large or suspicious gold transactions after rapid growth in trading volumes increased pressure on the baht.

The proposed rules for physical gold shops would extend scrutiny to a segment of the market not covered by the electronic-payment requirement currently applied to online platforms.