13 hours ago, vangrop said:

How much gold are we talking about. Are Thailands gold reserves eternal? Do we have a Midas syndrome. I don't think so. Beside there are several other facts involved. Thailands income generated by tourism amounts around 15% from the national income, the stronger the baht the more income. As some stated the richest Thais are investing mainly abroad, the stronger the baht the more profit when repatriating their foreign incomes. Third most of Thailands export are low cost goods such as food cheap clothing aso, even a strong baht will not have too much impact on these. Conclusion a strong baht, be it artificial is all benefit for Thailand.

 

It's gold they process. This isn't anything to do with the government or the gold reserves.

5 hours ago, thesetat said:

 

i do not know why you got downvotes for this. Your comment is correct. 

https://www.bangkokpost.com/business/general/3104798/surging-thai-gold-exports-to-cambodia-spark-probe-demand

There is a 19% increase in g old sold or brought into Cambodia. This directly affects the baht value. This is almost akin to baht manipulation. 

 

I think someone has written a script to automatically post a thumbs down as I post......I have my suspicions as to whom it might be.....5555

13 hours ago, vangrop said:

How much gold are we talking about. Are Thailands gold reserves eternal? Do we have a Midas syndrome. I don't think so. Beside there are several other facts involved. Thailands income generated by tourism amounts around 15% from the national income, the stronger the baht the more income. As some stated the richest Thais are investing mainly abroad, the stronger the baht the more profit when repatriating their foreign incomes. Third most of Thailands export are low cost goods such as food cheap clothing aso, even a strong baht will not have too much impact on these. Conclusion a strong baht, be it artificial is all benefit for Thailand.

In the first seven months of 2025, Thailand exported 71.3 billion baht worth of gold to Cambodia—a 19% increase year-on-year

14 hours ago, CallumWK said:

 

Sorry but you lost me there.

 

The gold dealer has to buy gold overseas and export dollars to pay for it.

The dealer sells it in Thailand and get paid in baht, which he has to exchange to dollar to buy new stock.

So if the gold goes to Vietnam how does that make the baht stronger, and why they don't buy it in Vietnam, where it is the exact same price as in Thailand?

https://www.bangkokpost.com/business/general/3104798/surging-thai-gold-exports-to-cambodia-spark-probe-demand

15 hours ago, CallumWK said:

A strong baht does not benefit their returns, just the opposite.

 

If you have 1 million euro profit on your investment, would you want to transfer it back to Thailand ate 31 baht to the euro or 36 baht?

Not if you spend it elsewhere to purchase for example property abroad. 

It certainly dose not improve the number of visitors a commodity Thailand depends on massively. 

It would appear that they still don’t know what has caused the increase. If they don’t know the cause after all this time it’s unlikely that they will find the right solution. I have to wonder what has taken them so long to adjust interest rates. 

Peta explained it very well in a video he made at Harvard, the country is run by the elite 2%, those with the real money and influence, and they have no intentions of sharing the cake. 

Could it be as simple as the current USA regime determined to lower the value of the dollar to the benefit of gold, crypto & other Fiat?  Sure seems to be a pattern of that

1 hour ago, cdulaney said:

Gold Price at 11:00 am today. 57,300thb. FYI

yep...https://goldpricez.com/th/baht

44 minutes ago, Hardcastle P said:

Not if you spend it elsewhere to purchase for example property abroad. 

 

 

And in which way does that affect the Thai baht?

1 hour ago, Will B Good said:

https://www.bangkokpost.com/business/general/3104798/surging-thai-gold-exports-to-cambodia-spark-probe-demand

 

Yes that link was posted already, though I think the effect is still minimal, because all gold sold need to be restocked, so the dealer has to buy US$ and transfer them out of Thailand

16 hours ago, Sir Dude said:

strong baht benefits the elite and their oversees investment/returns

So you are thinking that offshore investments in US dollars - since no brokerage offers Thai baht accounts - are doing better now.   Duh!!!! Earn a million US off shore and receive 32 million baht or earn 35 million baht.   I will take the 35 million baht.  Back to math class for you

4 hours ago, GreasyFingers said:

But where did the gold come from?

 

Related: how does 70 tons of physical gold get across the Thai-Cambodia border?

I don't think readers on this site fully understand or appreciate the extent to which currencies are affected by Global Marco Hedge Funds and Commodity Trading Advisors -- globally.  The hunt is for interest rate -- short the Yen and invest in higher paying currencies. Called the "Carry Trade", it is amongst the oldest arbitrage strategies on earth. 
 
If Thailand wants to weaken its currency it will need to lower interest rates and make the Baht a less attractive holding for these funds -- who are allowed leverage greater than 20:1.  The Baht has strengthened to the US $ because US interest rates are falling.  The US 10-year bond has seen a fast and sharp reduction in interest rates, losing more than 10% of its yield, and Trump is aggressively trying to manipulate (lower) interest rates for his own benefit -- as a highly leveraged owner of real estate.  

IMO this has less to do with gold or Cambodian trade and more to do with Interest Rate management.  HELLOOOOOO Thai Central Bank, I'm sure you are watching.  

As a final comment on this topic, look at the US$/THB exchange rate when US interest rates hovered near 0 for several years.  28 to the dollar for a while.  People have short memories.  

Will Thai govt start massive quantities easing(increasing the amount of cash flow in the marker)?

 

While minor currency like the is more influenced by external factor(eg international speculative funds); Thb is heavily bought outside its border.

 

One big factor, its a lot inflation rate(0.8%). a lot lower than the first world.

Just like High Jpy  around 2010.

 

Lower inflation rate=Monetary value appreciation of the respective country.

 

On 9/15/2025 at 4:49 PM, snoop1130 said:

File photo for reference only

 

Thai Prime Minister Anutin Charnvirakul announced on Monday the necessity for urgent action regarding the strong baht currency which has raised concerns among Thai businesses. Following a meeting with the Federation of Thai Industries, Anutin indicated plans to engage further discussions on the matter later in the day. He aims to address economic challenges as he finalizes his new cabinet lineup, pending royal approval this week.

 

Anutin secured his prime ministerial position through a decisive parliamentary vote this month, though he has a brief four-month term before the next election, as agreed with the largest parliamentary party supporting his appointment. His administration will tackle economic issues including US tariffs, significant household debt, and low consumption levels. Anutin's newly composed cabinet includes key figures such as Ekniti Nitithanprapas as finance minister, Auttapol Rerkpiboon overseeing energy, and Suphajee Suthumpun as commerce minister.

 

During the meeting, Anutin stated, “We had a long discussion and listened to their needs and urgent matters.” He added that incoming Finance Minister Ekniti Nitithanprapas will continue discussions about the baht's strength with industry representatives. Currently, the baht stands at 31.74 per US dollar after reaching a four-year high last week, making it one of Asia’s top-performing currencies.

 

Businesses, notably rice traders, have voiced concerns over the baht's appreciation by 7.9% this year. Many advocate for an ideal exchange rate of 34-35 baht per dollar to balance the economy better. The economy is projected to grow by 1.8% to 2.3% this year but faces a downturn in the latter half of 2025 due to US tariffs.

 

Thailand’s growth last year was 2.5%, trailing other regional economies. Anutin's administration anticipates further interest rate cuts this year under a new central bank governor. Last month, the Bank of Thailand reduced its key rate to 1.50%, and a further reduction is expected by the end of 2026, lowering it to a projected 1%.

 

Key Takeaways

• PM Anutin emphasizes urgent need to address strong baht currency.
• New cabinet lineup pending royal approval; Economic challenges in focus.
• Economic growth projected to slow in late 2025 due to US tariffs impact.

 

Related Stories

Thailand Acts to Tackle Baht Surge Amid Trade Woes

Caretaker Cabinet Extends 7% VAT Rate for Another Year

 

  Adapted by ASEAN Now from Bangkok Post 2025-09-15

 

 

You get nothing for your dollars and pay plenty for your food further wrecking Thailand how does that affect the drugs profit