The Bank of Thailand will introduce limits on online gold trading from Jan 29 in an effort to reduce upward pressure on the baht, Governor Vitai Ratanakorn said on Wednesday.
The central bank has attributed part of the baht’s recent strength to gold trading activity. The currency has appreciated 1.2% against the US dollar so far this year, following a 9% gain in 2025, raising concerns about competitiveness in the export and tourism sectors.
Under the new measures, daily online gold trading per account is expected to be capped at either 50 million or 100 million baht, Mr Vitai told reporters.
The rules will not be implemented immediately, as gold traders will be given time to upgrade their trading platforms, he said.
While the measures are expected to reduce volatility and ease upward pressure on the baht, they may not result in an immediate weakening of the currency, the governor acknowledged.
The central bank will first assess the impact of the gold trading limits before deciding whether to introduce a specific business tax on gold transactions. “If it is not necessary, we would prefer not to use tax measures,” Mr Vitai said.
Mr Vitai said the central bank aims to see the baht weaken to better reflect Thailand’s economic fundamentals and noted that it has already been purchasing US dollars. However, its ability to intervene is constrained by international rules on currency manipulation, as the bank can operate only in the onshore market, which accounts for about 40% of total foreign exchange transactions.
He added that the sharp appreciation of the baht over the past three to four days has been driven by gold trading and foreign capital inflows.
Nonetheless, underlying factors such as geopolitical developments and a broader shift away from the US dollar remain the primary forces behind the baht’s recent strength.
On Tuesday, the central bank also announced an easing of rules on foreign income repatriation by Thai individuals and businesses to help curb baht appreciation. The per-transaction threshold was raised from $1 million to $10 million, allowing exporters to retain a larger share of their US dollar earnings without converting them into baht.