Thailand Central Bank Addresses Baht Exchange Rate Amid U.S. Monitoring

On January 30, Thailand's central bank announced its ability to manage the baht's exchange rate despite being placed on the U.S. watchlist for potential currency manipulation. According to Jin10, Chayawadee Chai-Anant, Assistant Governor of the Bank of Thailand, stated in Bangkok that it would be challenging for Thailand to be classified as a currency manipulator and emphasized ongoing communication with the U.S. Treasury Department. Additionally, the central bank is tightening regulations on online gold trading to curb speculative activities that could exacerbate baht volatility. This move comes as rising gold prices and a weakening dollar have led Thai investors to sell gold, increasing foreign exchange inflows and putting upward pressure on the baht. Under new rules effective March 1, online platforms will face stricter settlement and reporting requirements, including a ban on net settlement and short selling. Investors will be required to sell only physical gold they own, with transactions settled electronically and cash payments prohibited.