Economy January 27, 2026

Thailand to Limit Daily Gold Trades as Rapid baht Gains Threaten Export, Tourism Competitiveness

Central bank moves to cap gold transactions from March to dampen currency appreciation and ease pressures on growth

By Marcus Reed
Thailand to Limit Daily Gold Trades as Rapid baht Gains Threaten Export, Tourism Competitiveness

Thailand's central bank will impose a daily cap on gold trading to curb fast-rising inflows that have contributed to a strong baht, the bank governor said. The measure aims to reduce currency volatility and protect the competitiveness of export and tourism sectors while authorities seek higher growth and structural reforms.

Key Points

  • Thailand will cap daily gold transactions at 50 million baht from March to slow rapid currency inflows.
  • The baht has risen about 1.5% year-to-date after a 9% increase in 2025, risking competitiveness in exports and tourism.
  • Authorities project growth of up to 1.7% this year, with potential to reach 2.7% alongside stimulus and structural measures; next year's growth is seen at 2.2% to 2.3% with inflation returning to target.

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.

Risks

  • Continued appreciation of the baht could further undermine export and tourism competitiveness.
  • External and domestic pressures - including U.S. tariffs, high household debt, a border conflict with Cambodia, and pre-election political uncertainty - may weigh on growth and market stability.

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