Thailand will introduce restrictions on gold trading beginning in March as part of an effort to rein in a rapidly appreciating baht and relieve strains on the economy, central bank governor Vitai Ratanakorn said on Wednesday.
Under the new measure, daily gold transactions will be limited to 50 million baht. Vitai said the restriction targets volatility created by large gold trades conducted in baht, which have been a major driver of recent currency inflows and weakened demand for the U.S. dollar.
"The objective is to reduce volatility and prevent sharp appreciation of the baht that could affect the broader economy," Vitai stated, noting that sizable gold transactions in domestic currency generate speedy inflows that bolster the baht.
The currency has strengthened about 1.5% against the U.S. dollar so far this year following a 9% rise during 2025. Officials have flagged the appreciation as a threat to the competitiveness of Thailand's export sector and its tourism industry.
Economic outlook and policy context
Vitai gave a moderated forecast for economic expansion, saying Thailand's economy may grow by as much as 1.7% this year and remains below its potential. He added that growth could reach 2.7% with additional measures, but stressed that along with short-term stimulus, policy action is needed to address structural issues in the economy.
Looking further ahead, the governor said he expects growth next year to be between 2.2% and 2.3%, and that inflation is likely to return to within the central bank's target range.
Challenges cited
- The central bank singled out the appreciating baht as a primary concern for growth and competitiveness.
- Officials also pointed to U.S. tariffs, elevated household debt, an ongoing border conflict with Cambodia, and political uncertainty ahead of elections in early February as additional headwinds.
Officials framed the gold-trading cap as a tactical step to moderate rapid inflows and reduce exchange-rate pressures, while broader policy efforts are expected to focus on both short-term support and longer-term structural reforms to lift growth.