Thailand Strengthens Control of Thai Currency Amid US Surveillance Pressure

2026-02-09 05:12:26

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The Bank of Thailand has announced new measures to stabilize the Thai currency as the country comes under U.S. scrutiny for potential currency manipulation. On January 30, Deputy Governor Chayawadee Chai-Anant stated in Bangkok that designating Thailand as a currency manipulator would face many challenges, while reaffirming the country’s ongoing commitment to dialogue with the U.S. Department of the Treasury.

Central Bank Faces Challenges in Managing Exchange Rates

The Thai baht has recently come under strong upward pressure. The main reasons are the combined effects of rising global gold prices and a weakening U.S. dollar, prompting Thai investors to increase gold sales. The foreign currency inflows from these transactions have exerted significant pressure on the baht, causing fluctuations that the Central Bank must manage carefully. This situation is further complicated by Thailand being placed on the U.S. watch list over suspicions of potential currency influence.

New Regulations on Gold Trading to Stabilize the Thai Currency

To limit speculative activities and control volatility, the Central Bank will implement a new set of regulations effective from March 1. These rules require online gold trading platforms to adhere to stricter payment and reporting standards.

Specifically, these platforms will be prohibited from executing net payments and short selling. Importantly, investors will only be allowed to sell physical gold they actually own; virtual gold trading or margin trading will be forbidden. All gold transactions must be settled through monitored electronic systems, while cash payments will be completely banned.

Impact on Markets and Investors

These measures reflect the Central Bank’s determination to protect the stability of the Thai currency from external influences. By tightening gold trading regulations, the authority aims to reduce foreign exchange inflows into the country and thereby ease upward pressure on the baht. This approach demonstrates a strategic balance between preventing currency manipulation and maintaining financial market stability.

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