18.09.202507:07:25UTC+00Thai Baht Retreats from 4-Year High as Officials Mull Steps

On Thursday, the Thai baht experienced a slight decline, trading at 31.88 per dollar. Despite this dip, the currency has appreciated approximately 8% this year, ranking it as the second strongest performer in Asia, trailing only the Taiwan dollar. This rapid appreciation has sparked concerns regarding its potential impact on Thailand's export and tourism sectors, which are crucial components of the nation's economy.

Ekniti Nitithanprapas, the incoming Finance Minister, has indicated that the government intends to collaborate with the Bank of Thailand to stabilize the local currency, which has recently reached a four-year peak. As part of these efforts, monitoring capital inflows and the trading of gold will be priorities to identify and address any irregularities. Ekniti further mentioned that he has been in discussions with Vitai Ratanakorn, who is set to assume the role of central bank governor on October 1, about measures to stabilize the baht. In addition, Ekniti hinted at the possibility of investigations into peculiar financial flows.

Deputy Minister Vorapak Tanyawong also issued a cautionary note, suggesting that increased foreign investment in Thai bonds and equities could drive the baht to appreciate further. Earlier this week, the central bank hinted at the potential implementation of a tax on gold trading as a regulatory measure. Notably, from January to July, Thailand's gold exports witnessed a significant surge, rising 82% to reach USD 7.6 billion, with USD 2.1 billion worth of exports directed to Cambodia.