Bank of Thailand to Cap Online Gold Trading to Ease Baht Pressure

Thailand’s central bank will impose limits on online gold trading by January 29 to reduce upward pressure on the baht, which has strengthened significantly against the dollar.

Key Details:

• Daily online gold trading will be capped at 50-100 million baht per account
• The baht has gained 1.2% against the dollar this year, following a 9% rise in 2025
• Gold trading and foreign fund inflows have driven the baht’s sharp appreciation over recent days
• The central bank raised the foreign income repatriation threshold from $1 million to $10 million per transaction
• Governor Vitai Ratanakorn noted the bank’s intervention capacity is limited to the onshore market, which represents only 40% of total forex transactions
• A specific business tax on gold trading may be considered after assessing the impact of these measures

Why It Matters:
The baht’s strength threatens Thailand’s export competitiveness and tourism sector, prompting the central bank to implement multiple measures to weaken the currency and align it with economic fundamentals.