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BoT Plans Baht-Easing Measures as Rate Cuts Remain Possible

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File picture for reference only

 

Thailand’s central bank is preparing new measures to ease upward pressure on the baht, following a sharp 7% appreciation against the US dollar this year that has raised concerns for the country’s export and tourism sectors. The Bank of Thailand (BoT) said it is monitoring volatility closely and will intervene where necessary to limit the impact on businesses. The announcement comes as the baht has become Asia’s second-best performing currency in 2025.

 

The BoT said it will require banks to tighten controls on gold-related foreign exchange transactions, a move designed to reduce speculative flows. Major gold traders will also be required to supply detailed transaction data to improve oversight of these capital movements. The central bank stated that these measures are intended to curb baht-strengthening pressures linked to gold trading behaviour.

 

As part of wider currency-management efforts, the BoT will propose that the Finance Ministry raise the limit on foreign income that does not need to be repatriated to $10 million per transaction, up from the current $1 million. The change, expected to take effect in December, aims to provide companies with greater flexibility in managing foreign currency. Reducing how much foreign exchange must be brought back into the country is intended to ease pressure on the baht by lowering inbound flows.

 

Earlier on 1 December, BoT Governor Vitai Ratanakorn said he saw room to cut interest rates but noted that monetary easing alone has limited influence on Thailand’s structural economic challenges. The central bank has lowered its policy rate four times over the past year, bringing it to a three-year low in an effort to support sluggish growth. It last reviewed the rate in October, leaving it unchanged at 1.50% despite expectations of further easing.

 

Bangkokpost reported that some economists believe another rate cut could be considered at the next policy meeting on 17 December. However, the BoT maintains that any monetary decisions will be guided by economic conditions and the need to manage currency stability. Officials reiterated that their priority is to minimise disruption to businesses caused by rapid currency movements.

 

Key Takeaways

 

• The baht has risen 7% against the US dollar this year, prompting the BoT to introduce currency-easing measures.

• Tighter controls on gold-related FX transactions and a higher foreign-income repatriation limit aim to reduce pressure on the baht.

• The BoT sees room for further rate cuts, with the next policy review set for 17 December.

 

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image.png Adapted by Asean Now from Bangkokpost 2025-12-02


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  • Popular Post

Wanna see something funny? I asked grok a question. Guess where it's pulling the data from?

 

Imagine getting expert advice from Yagoda and Celsius.

 

Screenshot_20251201_153828_Grok.jpg.3423ba13838b303f33ae6e30bf8765dc.jpg

  • Popular Post

so they know there is a problem but don't know how to fix it, what goes up could come crashing down, might be time to print money, drastic action is required now before the economy nose dives

  • Popular Post

It’s going to hurt exports and tourism if they dont do something a perfect storm coming 

  • Popular Post
3 hours ago, smedly said:

so they know there is a problem but don't know how to fix it, what goes up could come crashing down, might be time to print money, drastic action is required now before the economy nose dives

They know how to fix it, but that would go against certain entities.

  • Popular Post

Brag that the baht id the second best performer.I guess they really want to top the list. My country in Scandinavia get alot more tourists from all over the world because the krone get so weak that it makes it wery cheap compared to 2-3 years ago.Thailand is NOT a cheap country anymore compared to neighbourimg countries but still just talk about without doimg anything to make it weaker.Typical thai mindset.The gready mind never ever stop.They lost export markeds worldwide but it dont make them think different. 

  • Popular Post

AND ... it is still rising...  for the past few days the baht has risen more than 5%. defying all logic ... it is either currency control or 

the other possible - demand of baht from money launderers .. changing into baht... 

 

Anyone has a 3rd possible reason for the rising baht - for a country with growing household debt depleting all its spending power and a low growth of 1-2 percent and tariff hit exports........ ???? and declining tourists... or lastly - somewhere along these lines must be some fake news/data. 

 

Sigh....

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Hey BOT, it's time for an intervention!

Get this dang thing back to 36-38 range ASAP.

Thailand is expensive, I am wondering how those Thai people getting marry. Probably make their girls pregnant without marry.

46 minutes ago, NemoH said:

AND ... it is still rising...  for the past few days the baht has risen more than 5%. defying all logic ... it is either currency control or 

the other possible - demand of baht from money launderers .. changing into baht... 

 

Anyone has a 3rd possible reason for the rising baht - for a country with growing household debt depleting all its spending power and a low growth of 1-2 percent and tariff hit exports........ ???? and declining tourists... or lastly - somewhere along these lines must be some fake news/data. 

 

Sigh....

I’m not sure which currency pair you are looking at. But against the USD the baht has risen 1.04% over the past week. 5% in a few days would be a very large movement indeed and more associated with some disastrous event. I haven’t checked the baht movement against any other currencies 

The baht being strong is a negative for me to move to Thailand.  800,000 baht being closer to US$25K instead of $23K is a noticeable mount of money.  Combined with all of the other negatives I am waiting to see what changes.

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5 minutes ago, technoronin said:

The baht being strong is a negative for me to move to Thailand.  800,000 baht being closer to US$25K instead of $23K is a noticeable mount of money.  Combined with all of the other negatives I am waiting to see what changes.

Well it's only yourself that you're denying, you're missing out on a very high quality of life, it's more expensive than it used to be but it's still quite reasonable here, so I wouldn't get too carried away with your small percentages. 

8 minutes ago, technoronin said:

The baht being strong is a negative for me to move to Thailand.  800,000 baht being closer to US$25K instead of $23K is a noticeable mount of money.  Combined with all of the other negatives I am waiting to see what changes.

 

If $2K is an enormous amount of money to you, and influencing your decision to retire in Thailand, then I suggest you stay where you are.
There are already enough foreign retirees here that financially survive from day to day.

24 minutes ago, wensiensheng said:

I’m not sure which currency pair you are looking at. But against the USD the baht has risen 1.04% over the past week. 5% in a few days would be a very large movement indeed and more associated with some disastrous event. I haven’t checked the baht movement against any other currencies 

Then i sugest you do check against other currencies  its the same picture. For a country that relies on tourism and exports how is a strong tbht going to help,it nonsense. 

Is this the wrong story?

 

The Baht is up against the US$,  but to look at it another way, the US$ is down against the Baht.

 

The US$ is down against many currencies.  Is this not part of the US's strategy for a weaker $ to boost US exports?

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They are hiding with all kind of excuses that they are manipulating the THB.. It is in fact impossible that the THB stays so strong and even strengthen, Many negative news about tourism, economy, flood disaster, border issues with Cambodia and still the THB is getting more expensive by the day..Of course they know what is happening and as always they pretend to do what they can, but in fact it is all to keep the people quiet. It is very strange that always at the end of the week and end of the month the THB is stronger than in the middle. We have to accept it as we can't change their policy, but with their greed the ruin everything more..  

6 hours ago, Georgealbert said:

Asia’s second-best performing currency in 2025.

Interesting concept for a 3rd & 2nd-world country: 'rising xrate' = 'good performance'.

Just tell the rich ruling class to wind up their luxury shopping sprees a week or two ahead of devaluing the baht which should help those who work

A rate cut ! , I am only getting .80% on 3 months fixed account at Bangkok Bank

for my retirement money account ,if they cut the rate i could be paying THEM

to hold an account .

 

Getting over 5 % on accounts in England ,and have done OK with the Premium

bonds this year ,which help offset what I am not earning here ,I still remember

the good olde days here when I got up to 18 % interest .....

 

regards worgeordie

16 minutes ago, worgeordie said:

for my retirement money account ,if they cut the rate i could be paying THEM

 

That's the idea

 

Regards,

 

Celsius

Letting it drop in the exchange from foreign currency may drive people away. It's already lower than it's been in a long while. Artificially cutting the exchange rate against the world economies will likely cause a lot of problems, other countries have regretted doing it. You have to let economies operate based on supply and demand. The pendulum swings both ways. Just an opinion based on what (I think) I know. 

Economy is a basket case now, the only thing that will change public sentiment and SME business confidence is a complete change of government direction. And hopefully that can lead to a massive shakeup of the bureaucracy 🔨 

On 12/2/2025 at 9:45 AM, Hardcastle P said:

Then i sugest you do check against other currencies  its the same picture. For a country that relies on tourism and exports how is a strong tbht going to help,it nonsense. 

I’m not sure what you are driving at.

 

I was responding to a post that said the baht had appreciated by 5% in a few days. It hasn’t. As I posted, against the USD it has appreciated by 1.04% in a week. Similar story against other major currencies.

 

The point being that there is a huge difference between 5% in a few days and 1.04% in a week.

 

As to the (rhetorical?) question that you posed, of course a strong baht does not assist tourism or exports. But I never claimed that did I? So I am not sure why you introduce that into the discussion.

 

On 12/2/2025 at 12:10 PM, worgeordie said:

A rate cut ! , I am only getting .80% on 3 months fixed account at Bangkok Bank

for my retirement money account ,if they cut the rate i could be paying THEM

to hold an account .

 

Getting over 5 % on accounts in England ,and have done OK with the Premium

bonds this year ,which help offset what I am not earning here ,I still remember

the good olde days here when I got up to 18 % interest .....

 

regards worgeordie

What was the inflation rate when you were getting 18% on deposit?

Or, they can do nothing—and let Vietnam steal tourists and industries.

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