File photo for reference only

 

The Bank of Thailand (BOT) held talks with gold traders to address the baht's appreciation, attributed by industry leaders to a weaker US dollar rather than gold transactions. The BOT urged more dollar-based domestic gold trades to alleviate pressure on the baht, which has risen 7% this year, making it the region's strongest currency. Assistant Governor Pimphan Charoenkhwan pointed to a larger-than-expected current account surplus and high global gold prices as contributing factors.

 

Previously, the BOT and the Gold Traders Association explored shifting local gold transactions into dollars, emphasizing increased monitoring of baht-denominated trades to avoid illegalities. Jitti Tangsitpakdee, president of the Gold Traders Association, opposed potential taxes on online gold trades, arguing it would harm Thailand's position as an ASEAN gold hub and affect small-scale buyers. He emphasized that the baht's strength is more tied to US dollar volatility than gold.

 

Tipa Nawawattanasub of YLG Bullion & Futures reiterated that gold has minimal impact on the baht, advocating for continued use of US dollars in trading. She noted that the dollar's weakness is primarily due to US policy issues and that transacting in dollars won't necessarily slow baht appreciation. She warned that compelling all trades into dollars might disrupt the gold industry and investment options for savers.

 

Looking ahead, the BOT will consider further proposals to stabilize the baht and manage market volatility, while traders continue adapting to dollar-based transactions. The gold industry remains concerned over the potential impact of regulatory changes on market dynamics and investor access. The BOT's measures and future policy decisions will play a crucial role in shaping Thailand's economic landscape.

 

Key Takeaways

• The Bank of Thailand seeks to manage baht strength by encouraging dollar-based gold trades.
• Industry leaders stress that the baht's appreciation is linked to a weaker US dollar.
• Potential regulatory changes could impact Thailand's gold trade and small investors.

 

Related Stories:

Thai Leaders Alarmed by Unusual Gold Exports to Cambodia

Thai PM Anutin Urges Action on Strong Baht Currency

 

  Adapted by ASEAN Now from The Nation 2025-09-16

 

 

You also have China and Russia buying up as much gold as possible too which is affecting prices. For example, look how much is going from Thailand to Cambodia at the moment, which then finds its way to China.

6 minutes ago, Sir Dude said:

You also have China and Russia buying up as much gold as possible too which is affecting prices. For example, look how much is going from Thailand to Cambodia at the moment, which then finds its way to China.

 

What will they, the Chinese, do with all that gold?

 

Will they use it on their spacecraft to get to the Moon?

 

A rising Baht—just what the economy doesn’t need.  Thailand’s losses become Vietnam’s gains.

at least "some" realise that a rising baht hurts the thai economy 

 

some evidently don't

1 hour ago, GammaGlobulin said:

 

What will they, the Chinese, do with all that gold?

 

Will they use it on their spacecraft to get to the Moon?

 

No... use it as a cushion against sanctions etc. if they  invade Taiwan or there is a sudden world market shock, and trade with others outside the western system old style before Nixon got rid of the gold standard/Bretten Woods agreement.

Russia does the same with all its operations in Africa trying to squeeze it for gold, silver, diamonds, copper, lithium, China does the jade from Burma MO as well, and all sorts... then it doesn't need to trade in fiat money. Look at places like Burkino Faso/Mali/DR of Congo etc. and you'll see Russia and China racing for the resources in exchange for security for the regime or major corruption bucks for the rulers. 
Why do you think mercenary groups like Wager are in Africa? It's to funnel stuff to Moscow.

1 hour ago, snoop1130 said:

Looking ahead, the BOT will consider further proposals to stabilize the baht and manage market volatility

 

I'm sure that we're all mighty relieved to hear that the BOT are firmly on the case.🤣

Why are these stories always out of date?

 

The past month the pound fell to 42.9, then yesterday the pound went up to 43.4 and I changed some.

1 hour ago, Sir Dude said:

No... use it as a cushion against sanctions etc. if they  invade Taiwan or there is a sudden world market shock, and trade with others outside the western system old style before Nixon got rid of the gold standard/Bretten Woods agreement.

Russia does the same with all its operations in Africa trying to squeeze it for gold, silver, diamonds, copper, lithium, China does the jade from Burma MO as well, and all sorts... then it doesn't need to trade in fiat money. Look at places like Burkino Faso/Mali/DR of Congo etc. and you'll see Russia and China racing for the resources in exchange for security for the regime or major corruption bucks for the rulers. 
Why do you think mercenary groups like Wager are in Africa? It's to funnel stuff to Moscow.

 

I still recall the Good Old Days when the Chinese corrupt gov officials used to stuff the walls of their houses with gold and Rolex watches.

 

I used to enjoy the reporting from Evan Osnos in the days before he left China...

 

Sounds like much of the stash, these days, must be going to individual government leaders and not to the State....

 

 

3 hours ago, Isaan sailor said:

A rising Baht—just what the economy doesn’t need.  Thailand’s losses become Vietnam’s gains.

The way the economy is going for both nations at the moment, Viet Nam won't have to wait for Thailand's missteps to gain any traction. 

14 hours ago, GammaGlobulin said:

 

What will they, the Chinese, do with all that gold?

 

Will they use it on their spacecraft to get to the Moon?

 

Fund the Silk road

20 satang move incoming!  Hold yer water.

13 hours ago, BritManToo said:

Why are these stories always out of date?

 

The past month the pound fell to 42.9, then yesterday the pound went up to 43.4 and I changed some.

I don’t recall the story mentioning the Baht against the British Pound.

 

AUD vs Baht up this morning - GO FIGURE?

You don't need to be a professor of economics to know by now nothing effects movement in the Baht from border wars to leaderless never ending corruption, it wears a mysterious Kevlar jacket that even Donald's tariffs can't penetrate 🤔 

 

The thai baht is not increasing due to a weaker US dollar - other Asian countries the dollar is very strong - its seems that there is some currency manipulation going on somewhere - the new PM said he wanted the exchange rate to be about 34-35 the per dollar.  If they can move the exchange one way then I guess they can move it the way they want to.  Does this sound right?  Can a country really do this?

 

My X,xx.. THB transferring to Euroland the Euro costed me 38,00 already this early morning by KK

Baht surges while tourism plummets. Good job Thailand. Another shot in the foot. 

11 hours ago, B-LEE said:

The thai baht is not increasing due to a weaker US dollar - other Asian countries the dollar is very strong - its seems that there is some currency manipulation going on somewhere - the new PM said he wanted the exchange rate to be about 34-35 the per dollar.  If they can move the exchange one way then I guess they can move it the way they want to.  Does this sound right?  Can a country really do this?

 

High probability 

On 9/16/2025 at 5:38 PM, Isaan sailor said:

A rising Baht—just what the economy doesn’t need.  Thailand’s losses become Vietnam’s gains.

 

The Vietnamese Dong has been falling against the USD since 2022 and is 20% lower against the USD in that time. 

 

The USD is falling against most other currencies except GBP and Franc.

On 9/16/2025 at 5:33 PM, GammaGlobulin said:

 

What will they, the Chinese, do with all that gold?

 

Will they use it on their spacecraft to get to the Moon?

 

 

Isn't it all linked to the rumours that America will revalue gold from $42 to what $5000-$20,000 !  then use the profit to reduce (some of) their debt. Anyone holding gold is going to be rich?

1 hour ago, Advocate said:

 

The Vietnamese Dong has been falling against the USD since 2022 and is 20% lower against the USD in that time. 

 

The USD is falling against most other currencies except GBP and Franc.

 

Even the Israeli Shekel is rising against the USD.