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Gold Traders to Report Daily: Clamp Down on Baht Volatility

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File photo for reference only

 

The Bank of Thailand has announced a new requirement for gold traders to report their daily transactions. This rule applies to both physical and digital trade platforms and aims to enable the central bank to monitor activities and prevent practices that could impact the Thai baht's movement. The central bank is currently engaging in discussions with gold traders and other stakeholders and plans a public hearing to finalise the approach.

 

Chayawadee Chai-anant, assistant governor for corporate relations at the central bank, stated that monitoring these transactions is essential due to the historically high correlation between gold prices and the baht's fluctuations. Although not all gold operators must comply, the central bank will require those with transactions exceeding a certain income threshold to report. The bank plans to use the data to identify transactions linked to "grey money" and other unauthorised activities.

 

Recently, the correlation between gold prices and the baht has decreased, partly due to lower trading volumes. However, the central bank wants comprehensive data to assess and prevent unexpected baht movements against major currencies like the US dollar. Additional measures to stabilise the baht include revising foreign income repatriation rules, which may become effective by the year's end and potentially decrease exchange rate volatility.

 

As part of broader efforts to curb financial misconduct, the Bank of Thailand is also set to implement new rules requiring banks to report suspicious activities related to grey money. According to Governor Vitai Ratanakorn, banks must now directly notify the central bank of any suspect transactions, aligning with efforts to reduce illegal financial activities under the Financial Institutions Business Act, reported the Bangkok Post.

 

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Key Takeaways

 

  • Gold traders in Thailand will need to report daily transactions to the central bank.
  • The initiative is part of efforts to monitor baht volatility and prevent financial misconduct.
  • Further measures are planned to stabilise the baht and manage foreign exchange pressures.


Related Stories:

Baht Surges, Gold Trade Regulations Under BOT Scrutiny

Thai Leaders Alarmed by Unusual Gold Exports to Cambodia

 

image.png  Adapted by ASEAN Now from Bangkok Post 2025-12-06

 

 

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  • Popular Post

The gold shop racketeers reporting all sales and purchases....sure they will!!

BOT just looking for a scape-goat to cover their own incompetence in controlling the Baht.

On 12/6/2025 at 2:43 AM, webfact said:

Additional measures to stabilise the baht include revising foreign income repatriation rules, which may become effective by the year's end and potentially decrease exchange rate volatility.

Love to hear of those additional measures.

A waste of time by the central bank, and they know it. First, gold trading has little to do with the strength of the baht and, second, gold traders are unikely to follow any instruction to report their transactions. The fact is the rich and powerful in Thailand manipulate a strong baht in order to help finance their overseas investments.

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