Thai authorities are considering a tax on physical gold trading to slow a rally in the nation’s currency that has threatened exports and tourism. The baht fell the most in six weeks.
The Bank of Thailand (BOT) and the Ministry of Finance are discussing ways to tax gold bought and sold through various online channels and settled in baht, according to people familiar with the matter. Any such levy may exempt gold traded in US dollars, on futures exchanges or purchases made from bullion shops, the people said.
With the tax, the authorities aim to reduce exports of gold and make it more expensive for Thais to own the precious metal, the people said, adding that US dollar inflows tied to bullion shipments were among the factors strengthening the baht.
The baht dropped 0.5 per cent to 31.88 per US dollar, the most since July 31.
Thailand’s gold exports soared 69 per cent to 254 billion baht (S$10.2 billion) in the first seven months of 2025 from a year earlier, with an unusual jump in shipments to Cambodia sparking demands for a probe. Global bullion prices have rallied nearly 40 per cent in 2025.
On Sept 15, central bank officials met 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, BOT assistant governor Pimpan Charoenkwan said in a statement.
Earnings from gold exports helped fuel the baht’s rally to a 2021 high last week, with its 7 per cent surge in 2025 prompting calls for stronger central bank intervention to protect exports and tourism.
Prime Minister Anutin Charnvirakul, who met leaders of the country’s top industry group on Sept 15, said his incoming administration will urgently address concerns over the baht. He also pledged to act on any irregularities in the recent surge in gold exports, including shipments to Cambodia.
The Finance Ministry will also hold more talks with the central bank, and a decision will be made only after a new Cabinet takes office, the people said, adding that the levy may be introduced as a special business tax. If gold sellers convert US dollar proceeds to baht, the transaction may be taxed, the people said, adding that the rate of any levy has yet to be finalised.
The central bank has attributed the baht’s gains largely to US dollar weakness and external factors, while pledging to intervene in the market to curb any excess volatility. The currency typically gets a boost when Thais sell gold, which is highly valued as an investment, as US dollar proceeds are converted into the local currency.
A stronger baht is hurting Thai exports and tourism, which together account for 70 per cent of the nation’s gross domestic product. Exporters are already reeling after the country’s shipments were hit with a 19 per cent US tariff in August, while foreign tourist arrivals are down, partly due to the stronger currency and safety concerns among Chinese visitors.
The Federation of Thai Industries said the baht’s ideal level should be 34 to 35 per US dollar and urged the government to exclude gold trading from current account calculations to limit the metal’s influence on the currency.
Gold holds deep cultural and historical significance in Thailand, where it is often offered at Buddhist temples and regarded as a traditional way to save and pass down wealth. Demand jumped 13 per cent in 2024, making Thailand the only country to record four consecutive years of growth through the Covid-19 pandemic, according to YLG Bullion International, citing World Gold Council data. BLOOMBERG
