Bangkok: The Bank of Thailand is set to amend the Ministry of Finance’s announcement, urging major gold retailers to report intraday trading transactions in an effort to weaken the baht.

According to Thai News Agency, Ms. Chayawadee Chaianan, Assistant Governor, Corporate Affairs and spokesperson for the Bank of Thailand (BOT), highlighted that the baht’s appreciation is influenced by several factors, including a weakening US dollar and significant increases in gold trading. The BOT has engaged the Ministry of Finance in discussions to address baht volatility, leading to the decision to amend the Ministry’s announcement. This includes increasing the limit on foreign currency repatriation from US$1 million to US$10 million to curb inflows, and requesting major gold shops to report intraday trading. Ms. Chaianan noted that gold transactions have a considerable impact on currency exchange rates, particularly transactions conducted in baht. The changes aim to assist gold shops in managing risks associated with international gold transactions and foreign exchange trading. Comments on these amendments are open until December 11th on the BoT website, and the reporting process will be determined by s
pecific income criteria, excluding smaller shops.

Currently, the BOT only possesses data on gold shops engaging in foreign exchange (FX) transactions with domestic commercial banks. There is no data on gold shops conducting transactions in foreign markets, FX transactions through affiliated companies abroad, or transactions using cryptocurrencies. The BOT is requesting amendments to the Ministry of Finance’s announcement to better monitor the impact on currency exchange rates and guide the establishment of relevant policies.