On December 16, 2025, Mr. Vitai Ratanakorn, Governor of the Bank of Thailand (BOT), addressed the Thai baht situation, stating that since the beginning of December 2025, the baht has appreciated by 2.5%.
The main reason is the depreciation of the U.S. dollar and year-end factors that have contributed to increased capital inflows from tourism, exports, and investments in equities and bonds. Additionally, transactions by gold traders have significantly increased U.S. dollar selling to purchase baht.
The BOT Governor stated that commercial banks have been instructed to strictly verify documentation for foreign currency sales involving baht purchases by gold businesses. The BOT is also seeking the Ministry of Finance’s approval to issue an announcement empowering the BOT to collect data related to foreign exchange transactions from major gold traders.
The BOT has also tightened supervision of U.S. dollar sales to buy Thai baht, as in some periods, gold trading accounts for as much as 20% of total foreign exchange transactions—causing marked volatility in the baht.
The BOT Governor reiterated that the central bank will closely scrutinize foreign currency sales to purchase baht in order to prevent undesirable capital inflows unrelated to regular business operations, including individual money transfers. Commercial banks will be required to tightly monitor all cross-border currency inflows.
