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2025-12-15 10:55:01
[Thailand Tightens Regulations on Gold Traders' Foreign Exchange Business to Curb Abnormal Baht Fluctuations] 1. The Bank of Thailand issued a statement requiring financial institutions to report details of foreign exchange forward transactions by gold traders to prevent such transactions from exacerbating baht exchange rate volatility. Assistant Governor of the Financial Markets Department, Pimpa Charonkorn, emphasized that banks must verify overseas gold sales certificates for each transaction by gold shops and require shops to submit proof of funds and gold shipment documents within two days of foreign exchange delivery to ensure that foreign exchange transactions are based on genuine export backgrounds. 2. The Bank of Thailand is currently soliciting opinions on a draft amendment to the Foreign Exchange Management Regulations. The new regulations will require large gold traders to report all related transactions, aiming to strengthen supervision, assess the impact on exchange rates, and provide a basis for subsequent policy formulation. This move shows that Thailand is preventing foreign exchange speculation through gold trading by refining its regulatory measures.
