Picture courtesy of Bangkok Post

The Bank of Thailand is stepping up efforts to tackle 'grey money' as it seeks to address structural challenges in the economy. Central bank governor Vitai Ratanakorn announced that commercial banks must report cash exchange transactions involving large sums, which could be tied to illicit activities such as vote-buying.

Corruption and grey money are significant issues affecting Thailand's economy, which already faces declining productivity and competitiveness. Cash exchanges spiked before the election announcement on Feb. 28 but have since stabilised. We expect the central bank to enforce its oversight soon, especially during the election period.

Mr Vitai stated that the regulation aims to prevent disruptions in cash transactions around Chinese New Year, when exchange volumes typically rise. Meanwhile, new rules on online gold trading are also anticipated, with the Ministry of Finance set to approve changes between January 23 and 29. Digital gold transactions make up 35% of trading volumes, while physical transactions account for 15%.

The central bank plans to cap online gold trading transactions at 50 or 100 million baht. In 2025, Hua Seng Heng, the largest gold trader, reported revenues of about 5 trillion baht, nearly a third of Thailand’s GDP, highlighting the significant impact of gold trading on the baht's volatility.

The central bank is also monitoring currency exchange limits, enforcing daily transaction caps of 800,000 baht per person. It scrutinises e-money and e-wallet channels and coordinates with the Securities and Exchange Commission to oversee Tether's (USDT) transactions. Initial checks have not linked USDT to significant baht volatility, reported the Bangkok Post.

Key Takeaways

• Thailand’s central bank targets 'grey money' to mitigate economic risks.

• New rules on gold trading and currency exchange limits are in development.

• Digital asset monitoring includes coordination with the Securities and Exchange Commission.

  

Adapted by ASEAN Now from Bangkok Post 2026-01-14

 

 

They know that vote buying is something all parties do, and never do anything about it. When my wife talks to her friends, it always talk about and questions regarding money and election. Instead of talking about what they stand for and what they can do for Thailand, they ask each other how much money each and everyone got for voting, and they always vote for the one who gives them the highest sum. My wife, on the other hand, was offered money from numerous parties. She just told them to keep it, and one gave to her mother, and she told mother to give it back and she did.