Bangkok: The Bank of Thailand and gold shops are stepping up their monitoring of investors trading gold in baht. The Bank of Thailand (BOT) is meeting with gold shops to expedite measures to mitigate the impact of gold transactions on currency exchange rates and requesting cooperation in enhancing monitoring of gold trading in baht, particularly among investors. The Gold Traders Association is also working to find joint measures.
According to Thai News Agency, Ms. Pimphan Charoenkhwan, Assistant Governor for the Financial Markets Operations Department of the Bank of Thailand (BOT), revealed that since the beginning of the year, the baht has appreciated by approximately 7%, leading regional currencies in appreciation, due to both a larger-than-expected current account surplus and the continued rise in gold prices.
Today, the Bank of Thailand invited the Gold Traders Association to participate in discussions to consider ways to reduce the impact of gold trading on the baht. The Association proposed measures to help promote greater dollar-denominated gold trading in Thailand.
Additionally, the BoT is requesting cooperation from gold shop operators in enhancing their monitoring of gold trading in baht, particularly investor behavior that may affect the exchange rate. They are also seeking to ensure that transactions are not linked to illegal activities.
The Bank of Thailand has listened to the opinions and requested that the Gold Traders Association and gold shop operators develop additional proposals to mitigate the impact on the currency, which will be considered by relevant agencies for future action to ensure efficiency and precision.