Finance minister signs order empowering central bank to monitor transactions as overvalued currency threatens export competitiveness.
Thailand’s finance minister has signed a sweeping order granting the central bank new powers to monitor gold trading transactions, as authorities intensify efforts to curb excessive baht appreciation threatening the nation’s economic recovery.
Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas announced the regulatory amendment on Thursday at the CEO Day event organised by Krungthep Turakij, revealing a comprehensive strategy to address currency volatility that officials warn could trap Thailand’s already sluggish economy.
The amended Ministry of Finance regulation empowers the Bank of Thailand governor to invoke authority under the Exchange Control Act, requiring gold shops to report transactions to the central bank.
The measure specifically targets gold trading through mobile applications, which authorities believe is directly impacting the baht’s exchange rate.
“We are discussing every possible avenue, using both monetary and fiscal tools to manage the baht. An excessively strong baht will further damage the Thai economy,” Ekniti said during his presentation on fiscal and financial strategies for economic revival.
Thailand currently faces what the finance minister described as excessive baht strength beyond fundamental factors, severely impacting the export sector and national competitiveness.
The currency appreciation stems from multiple sources, including a current account surplus, external factors such as United States policy implementation, and unusual gold-related transactions.