Thailand Cracks Down on Gold Trading with Daily Limits

Thailand's central bank has reported that restrictions on gold trading have weakened its influence on the baht, Thailand's currency. The Bank of Thailand imposed a daily limit of 50 million baht (US$1.5 million) per person on online gold trading in March and encouraged larger investors to settle transactions in US dollars rather than baht.

The governor of the central bank, Vitai Ratanakorn, stated that the relationship between the baht and gold prices has decreased significantly since the introduction of these measures. He explained that large trades had previously amplified currency swings, contributing to the baht's sharp appreciation last year.

The restrictions have also led to a decrease in physical gold withdrawals exceeding 2 kilograms, which have dropped by about 70% since authorities began requiring them to be reported.