The Governor of the Bank of Thailand publicly stated that the recent abnormal activity in gold trading has driven the continuous appreciation of the Thai baht. To stabilize the exchange rate and prevent market speculative risks, the Bank of Thailand decided to introduce regulatory measures, limiting the daily online gold trading volume to no more than 50 million Thai baht and comprehensively banning short selling of gold. This move has attracted widespread attention in Southeast Asian financial markets.

It is reported that due to the recent sharp fluctuations in the global precious metals market and the continuous surge in gold prices, the activity of domestic gold trading in Thailand has surged. A large amount of overseas capital has flowed into Thailand’s gold market, pushing the Thai baht to appreciate continuously. The appreciation of the Thai baht is not conducive to Thailand’s export trade, especially the export of agricultural products and manufacturing industries, which may weaken the global competitiveness of Thai goods and affect the pace of domestic economic recovery, which is the core reason for the Bank of Thailand’s intervention and regulation.

Thailand is one of the major gold consumption and trading markets in Southeast Asia, and gold trading occupies an important position in the domestic financial market. The regulatory measures introduced by the Bank of Thailand this time aim to ease the pressure of baht appreciation, maintain exchange rate stability, and prevent financial risks caused by excessive fluctuations in the gold market by limiting the scale of gold trading and curbing speculative transactions. Industry insiders said that this measure will effectively curb speculative activities in the gold market in the short term and ease the appreciation momentum of the baht, but the long-term effect still depends on the trend of the global precious metals market and the flow of overseas capital.

At the same time, the Bank of Thailand also stated that it will continue to monitor the trends of the gold market and the exchange rate, and adjust regulatory measures in a timely manner according to market changes to ensure the stable operation of the domestic financial market. Recently, many countries around the world have strengthened the regulation of the precious metals market, and the Bank of Thailand’s move also echoes the trend of global financial regulation, avoiding systemic risks caused by excessive fluctuations in asset prices.