Bank of Thailand Governor Ratanakorn said on Thursday that after the surge in gold trading boosted the Thai baht's appreciation, the central bank called on the Ministry of Finance to control gold trading and said that after the key interest rate falls to a three-year low, monetary policy may be further relaxed if necessary. Since this year, the Thai baht has appreciated 9.1% against the US dollar, making it the second-best performing currency in Asia, which has exacerbated the problems faced by Southeast Asia's second-largest economy. Thailand has been struggling to deal with multiple challenges such as US tariffs, high household debt, border clashes with Cambodia, and political uncertainty before the February 8 election. Ratanakorn said that gold trading flows have become an important driving force for currency trends. He said that in the days when the Thai baht strengthened sharply, gold transactions accounted for about half of the capital flows that drove the Thai baht higher. He also said that the current trading volume of large gold traders is equivalent to about 50% of GDP.

Bank of Thailand Governor Ratanakorn said on Thursday that after the surge in gold trading boosted the Thai baht's appreciation, the central bank called on the Ministry of Finance to control gold trading and said that after the key interest rate falls to a three-year low, monetary policy may be further relaxed if necessary. Since this year, the Thai baht has appreciated 9.1% against the US dollar, making it the second-best performing currency in Asia, which has exacerbated the problems faced by Southeast Asia's second-largest economy. Thailand has been struggling to deal with multiple challenges such as US tariffs, high household debt, border clashes with Cambodia, and political uncertainty before the February 8 election. Ratanakorn said that gold trading flows have become an important driving force for currency trends. He said that in the days when the Thai baht strengthened sharply, gold transactions accounted for about half of the capital flows that drove the Thai baht higher. He also said that the current trading volume of large gold traders is equivalent to about 50% of GDP.