Thailand's restrictions on gold trading take effect as authorities try to curb the appreciation of the Thai baht.

Thailand has implemented strict new regulations on retail gold trading starting from March 1st, aimed at curbing speculative activities. Such speculation activities have driven up the Thai baht exchange rate, weakening the country's competitiveness. According to an announcement on the website of the Bank of Thailand, individuals conducting online gold trading in Thai baht will be limited to 50 million baht per person per platform per day. Transactions denominated in US dollars, physical gold trading in stores, and futures markets are not subject to this limit. In addition, the central bank requires all transactions to be fully prepaid electronically, and prohibits account holding and short selling transactions, stating that this will enhance market transparency and regulation. This move highlights the central bank's increasing concerns: large-scale Thai baht-denominated gold trading amplifies the appreciation of the local currency. Over the past year, the Thai baht has appreciated by about 9%, ranking second among Asian currencies tracked by the media. Officials have stated that this round of appreciation is partly related to the US dollar selling related to gold, which has put pressure on exports and the tourism industry, exacerbating economic downturn resistance.