Photo courtesy of Bangkok Post

 

Thailand's new government, led by Finance Minister Ekniti Nitithanprapas, announced plans to collaborate with the Bank of Thailand in managing the baht, currently at a four-year high. Monitoring efforts will focus on capital inflows and irregularities in gold trading. Ekniti and future central bank governor Vitai Ratanakorn aim to stabilize the volatile currency.

 

The new administration is concerned about the baht's strength, notably its impact on exports and tourism. Recent foreign interest in Thai bonds and stocks has been heightened by the narrowing interest rate gap between Thailand and the US following an American interest rate cut. Deputy-designate Vorapak Tanyawong predicts continued strength in the baht due to sustained foreign investment.

 

Vorapak noted that further Fed rate cuts could lead to volatility in the US dollar, affecting the baht based on investor sentiment. He emphasized the Bank of Thailand's need to regulate the baht's value to prevent adverse effects on the economy. Vorapak highlighted concerns over expedited capital inflows possibly driving the baht to excessively high levels.

 

Currently, the baht, though softened to 31.88 per dollar, has appreciated roughly 8% in 2023, trailing only the Taiwan dollar among Asian currencies. Exporters and tourism professionals are wary of this trend. Meanwhile, the central bank is considering measures such as a gold trading tax to mitigate the baht's appreciation, though gold traders caution this could harm Thailand's status as a gold hub.

 

A significant rise in gold exports, notably an 82% year-on-year increase to $7.6 billion, has emerged, with substantial volumes directed to Cambodia. Prime Minister Anutin Charnvirakul has initiated an investigation into these transactions, suspecting connections to money laundering by illegal operations in the region.

 

Key Takeaways:

• Thai government partners with central bank to manage baht's strength.
• Foreign investment is increasing due to US interest rate cuts.
• Concerns over rapid capital inflows impact economic stability.

 

Related Stories

Over 3% of Thais Struggling in Poverty Amid Heavy Debt

PM Anutin Probes Gold Exports Amid Baht Surge Concerns

 

  Adapted by ASEAN Now from Bangkok Post 2025-09-19

 

 

So now they try to find something to blame on not looking themselves again.

Curious if anyone reading this has expertise in the area.  Is it their intention to reduce the value of the baht?  I would love to see high 30s baht to dollar again.

Meanwhile it keeps gaining value notgood for tourism or exports while vietnam is going ahead next they will be saying record numbers are coming b.s.

It's the management that's the problem just ask the manipulation department 🤔 

Yes yesterday , Gold up , Baht up.

11 minutes ago, FlorC said:

Yes yesterday , Gold up , Baht up.

Never measure on a daily basis. Look for trends, take note of futures markets. Do people value their houses daily? Shop around for BG's.🙃🙃

01.01.25    €/usd   thb/usd
01.01.25    1.0267  34.290   
19.09.25    1.1746  31.845
 dif %           13%       7%

 

This year the us-doller lost 13% on the eur
This year the us-doller lost  7% on the thb

 

it s usd-weakness, not thb strength!

 

usd lost on most mayor currencies:

 

Since Donald Trump's inauguration, we have seen an 11 percent decline in the value of the dollar, the steepest decline in more than a half-a-century.

 

https://transcripts.cnn.com/show/sotu/date/2025-07-20/segment/01

 

The winning never ends.  I'll never get tired of the winning.

19 minutes ago, NoDisplayName said:

Since Donald Trump's inauguration, we have seen an 11 percent decline in the value of the dollar, the steepest decline in more than a half-a-century.

 

https://transcripts.cnn.com/show/sotu/date/2025-07-20/segment/01

 

The winning never ends.  I'll never get tired of the winning.

Stay on topic, please. This thread is about Thb - not about Trump.

 

My point: Thailand s relatively small economy might not be powerful enough to affect the "strength" of Thb vs Usd.

Just now, pauku1 said:

Stay on topic, please. This thread is about Thb - not about Trump.

 

The topic has broadened to include the loss of value of the dollar being the root cause of the apparent rise of the value of the baht.

If the proposed tax changes to allow wealthy Thais to repatriate foreign income tax free comes to pass, then that should increase demand for the baht. Working against efforts to lower the value of the currency.

3 hours ago, Lucky Bones said:

Never measure on a daily basis. Look for trends, take note of futures markets. Do people value their houses daily? Shop around for BG's.🙃🙃

Trend for Gold is still up , so more doom for us with strong baht.

 

 

BG's ?

Are they still around ?

 

 

8 minutes ago, FlorC said:

Trend for Gold is still up , so more doom for us with strong baht.

 

 

BG's ?

Are they still around ?

 

 

Sadly, gold is the first thing to crash when the walls come tumblin' down. Govt's have a habit of stealing it. Yes,(good response), shopping for BG's is important. Try to get the older ones that have been looked after. A warped vinyl BG can cause problems with your stylus.🙃🙃

Central Banks should be independent

27 minutes ago, Lucky Bones said:

Sadly, gold is the first thing to crash when the walls come tumblin' down. Govt's have a habit of stealing it. Yes,(good response), shopping for BG's is important. Try to get the older ones that have been looked after. A warped vinyl BG can cause problems with your stylus.🙃🙃

Some predict a coming crash mainly through overvalued AI hype/stocks.

And yes Gold will be sold to meet margin calls and because it's easily sold to have cash.

But just like in the 2008 crash , it will come back.

Low chance of governments stealing it.

Far too few people hold PM's. 

Stealing from bank accounts , forced into devalued CBDC's 

are more likely.

4 hours ago, pauku1 said:

01.01.25    €/usd   thb/usd
01.01.25    1.0267  34.290   
19.09.25    1.1746  31.845
 dif %           13%       7%

 

This year the us-doller lost 13% on the eur
This year the us-doller lost  7% on the thb

 

it s usd-weakness, not thb strength!

 

usd lost on most mayor currencies:

 

 

Thanks. That's what I am trying to explain to people. 

21 hours ago, snoop1130 said:

A significant rise in gold exports, notably an 82% year-on-year increase to $7.6 billion, has emerged, with substantial volumes directed to Cambodia. Prime Minister Anutin Charnvirakul has initiated an investigation into these transactions, suspecting connections to money laundering by illegal operations in the region.

 

Freeze them. If they can freeze everyone's bank accounts as suspect, they can freeze all the gold transactions.

Best solution and it was suggested over ten years ago to set the Baht to the Dollar at 36 and call it a day.

Today!  40 to 1 would do *m not greedy!🤣

I've always wondered how much control governments have over the perceived value of currency.  For example it's always in the best interest of a nation to lower it's currency value to spur exports and tourism industries.  Will Thailand try to do that?  

 

 

2 hours ago, jimmybcool said:

I've always wondered how much control governments have over the perceived value of currency.  For example it's always in the best interest of a nation to lower it's currency value to spur exports and tourism industries.  Will Thailand try to do that?  

 

 

That makes imported goods more expensive. Probably no good idea for a net-importing country...

I always find it a bit strange that when bad economic news comes out of the UK, Europe or the USA the £$€ value deteriorates but bad news from Thailand Baht does't budge?