Thai authorities are considering a tax on gold trades as part of efforts to slow the baht’s rally, which has pressured the country’s central sectors to its economy, exports and tourism.
The Bank of Thailand (BoT) and the Ministry of Finance (MOF) are discussing a levy on gold transactions settled in baht, particularly through online platforms. Exemptions may apply to U.S. dollar trades, futures exchanges, or bullion shops. Officials said no decision would be made until a new Cabinet takes office.
The move comes after gold exports surged 69% in the first seven months of 2025 to 254 billion baht ($10.2 billion), with large shipments to Cambodia prompting calls for an investigation. Proceeds from gold sales, often converted into baht, have been a key driver behind the currency’s strength.
Thai baht climbed to a four-year high last week, up about 7% this year, before easing to 31.92 per U.S. dollar after news of the proposed tax, its sharpest drop in six weeks. Business groups say the currency’s fair level should be between 34 and 35 per dollar.
A stronger baht has complicated Thailand’s economic outlook. Exports are under strain, with 19% U.S. tariffs imposed in August adding to the pressure, while foreign tourist arrivals have slowed, partly because of higher costs and safety concerns among Chinese visitors. Together, exports and tourism account for about 70% of GDP.
The BoT has also urged traders to shift more gold transactions into dollars to reduce volatility and currency risks. According to industry estimates, around 70% of Thai gold purchases are made online, and demand is forecast to rise for a fifth straight year to 53.7 tonnes in 2025.
Prime Minister Anutin Charnvirakul has pledged to address baht volatility and review irregularities in gold shipments. The central bank has maintained that the currency’s gains are largely tied to a weaker U.S. dollar but said it will step in if movements become excessive.
