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2025-09-16 17:18:23
Is the Thai Baht's Rise Hitting a Roadblock? Gold Transaction Tax in Focus. ⑴ The Thai baht has surged against the US dollar, reaching a four-year high of 31.718 baht per dollar, well above the 34-35 baht range considered acceptable by economic groups. Institutions cite a weakening US dollar and surging gold exports to neighboring Cambodia as key factors driving the baht's strength. ⑵ The Bank of Thailand Governor stated that he is considering measures such as imposing a tax on gold transactions and encouraging gold transactions in US dollars to stabilize the baht's rapid appreciation. From January to July, Thai gold exports increased 82% year-on-year to US$7.6 billion, with exports to Cambodia accounting for a significant US$2.1 billion. ⑶ The central bank governor also expressed concern about surging private debt and Thailand's weakening fiscal position, warning of the risk of a ratings downgrade if the fiscal situation does not improve. Although the Bank of Thailand has cut interest rates four times to address slowing economic growth, the market remains focused on the next rate review and how the new governor will address long-term structural issues.
