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Bank of Thailand Seeks to Ease Pressure on the Baht through Gold Trading Measures

Strategic Insights

— 1 min read

The Bank of Thailand (BOT) has convened a meeting with gold traders to discuss measures to ease pressure on the baht caused by gold transactions. The central bank is encouraging more domestic gold trading in US dollars to reduce upward pressure on the currency, while closely monitoring baht-denominated trades to prevent irregular or unlawful activity. The BOT has also invited the Gold Traders Association to explore solutions to mitigate the impact of the baht's appreciation on the gold industry.

Key Takeaways:

  • The Bank of Thailand has convened a meeting with gold traders to discuss measures to ease pressure on the baht caused by gold transactions.
  • The central bank is encouraging more domestic gold trading in US dollars to reduce upward pressure on the currency.
  • The BOT has invited the Gold Traders Association to explore solutions to mitigate the impact of the baht's appreciation on the gold industry.
  • Gold firms argue that the recent strength of the baht has little to do with gold trading, citing the dollar's weakness as the key factor.
  • Thailand remains the top gold exporter to Cambodia in ASEAN, with Thai gold exports accounting for 41.6% of the country's gold shipments within ASEAN in July 2025.
  • Thailand has remained a net gold importer for five consecutive years, with gold imports growing faster than exports in the first seven months of the year.
  • The increase in imports relative to exports could worsen Thailand's trade deficit, as more US dollars are required to finance gold purchases.

Statistics:

  • The baht has appreciated by around 7% since the start of the year, the strongest among regional currencies.
  • Thai gold exports to Cambodia accounted for 41.6% of the country's gold shipments within ASEAN in July 2025.
  • Thai gold exports in the first seven months of the year reached 78,075 kilograms, up 31.68% from a year earlier.
  • However, imports grew even faster, with Thailand importing 187,848 kilograms of gold, an 82.53% increase from last year.
  • Gold imports this year have risen at a faster pace than exports compared with 2024.
  • Exports accounted for just 29.36% of total trade volume (imports + exports), signalling a downward trend in the share of exports.

Sources:

  • Bank of Thailand (BOT)
  • Tipa Nawawattanasub, Chief Executive of YLG Bullion and Futures
  • Pawan Nawawattanasub, CEO of YLG Bullion International
  • Jitti Tangsitpakdee, Chairman of Chin Hua Heng Goldsmith and President of the Gold Traders Association

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