Thai Central Bank Says Gold Tax Among Options to Cool Baht Gains

(Bloomberg) -- Thailand’s central bank said a gold tax is among measures under consideration to temper the baht’s gains, a day after Prime Minister Anutin Charnvirakul pledged to “urgently fix” the currency rally threatening the nation’s exports and tourism.

A decision on how best to reduce the baht’s correlation with gold may take time, as the matter requires careful study and consultations with stakeholders, Bank of Thailand Governor Sethaput Suthiwartnarueput, who ends his five-year term on Sept. 30, said at a briefing on Tuesday.

“The final outcome will depend on what we consider the most appropriate after consulting with the relevant parties,” Sethaput said. 

His comments came after Bloomberg reported Monday that the BOT and the Ministry of Finance are discussing ways to tax gold bought and sold through various online channels and settled in baht. The proposed levy is aimed at encouraging people to trade gold in dollars and reduce the metal’s impact on the local currency. Dollar inflows tied to bullion shipments are cited as among the factors behind the baht’s strength.

The baht hit a four-year high last week, supported by broader dollar weakness and a nearly 70% jump in gold exports in the first seven months of 2025. An unusual surge in bullion exports to neighboring Cambodia too has sparked calls for a probe. Sethaput said the central bank has asked the anti-money laundering office to investigate if there were any irregularities. 

Read: Surging Thai Gold Exports to Cambodia Spark Probe Demand

A stronger baht is hurting Thai exports and tourism, which together account for 70% of the nation’s gross domestic product. Exporters are already reeling after the country’s shipments were hit with a 19% US tariff last month, while foreign tourist arrivals are down, partly due to the stronger currency and safety concerns among Chinese visitors.

The correlation between gold and the baht is “quite high,” the governor said, adding it was an additional factor for the currency’s appreciation. The central bank is not complacent about the rally and has intervened in the market to ease excess currency swings, he said.

On Monday, central bank officials met with representatives of the Thai Gold Traders Association and urged them to closely monitor bullion transactions in baht to curb currency risks and illegal activities. The group has proposed shifting more trading into US dollars, according to BOT.

Read: Bank of Thailand Chief Sees Economic Risk in Political Drift 

On the outlook for monetary policy, Sethaput said the central bank stood ready to adjust interest rate if necessary. The rate panel remains outlook-dependent in determining rate moves, he said adding it was important to preserve limited policy space to deal with future shocks.

The Monetary Policy Committee headed by Sethaput has cut the benchmark interest rate by a cumulative 100 basis points since October to 1.5% to shield an economy hobbled by a downturn in its vital tourism sector and the blow from US tariffs. His successor, Vitai Ratanakorn, will chair the panel’s next meeting on Oct. 8.

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