BANGKOK – Thailand is implementing stricter monitoring of capital inflows from non-residents as part of a broader effort by the central bank to manage the rapid appreciation of the baht. Starting Monday, Thai banks will be required to report any non-resident capital inflows exceeding $200,000, including the purpose and supporting documentation.

Thai Baht Hits Four-Year High, Intensifying Pressure on Central Bank

Bank of Thailand Governor Vitai Ratanakorn announced the measure on Friday, stating it marks the first time the central bank will systematically examine the intent and paperwork behind such transactions. Additionally, banks must now report gold trading transactions conducted via digital platforms on both a daily and per-transaction basis.

The move aims to provide the central bank with more comprehensive data to better monitor and manage currency movements. The baht has appreciated 4.2% against the U.S. dollar this month—the strongest gain among regional currencies—and has strengthened 9.4% year-to-date. On Friday, the baht traded at 31.03 to the dollar, with many analysts expecting it to test the 30-baht threshold soon.

Thailand tightens reporting of non-resident cash inflows https://t.co/jIPPzjbcM6 #Thailand

— Bangkok Post (@BKK_POST) December 26, 2025

Governor Vitai highlighted that speculative gold trading has significantly influenced the baht’s strength, driven by rising global gold prices. Online gold trading recently accounted for 40–60% of total foreign exchange transactions, prompting the need for tighter oversight. Authorities are also considering a special business tax on online gold trading, pending an assessment by the Revenue Department.

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While the central bank has intervened heavily in recent months to curb volatility, Vitai acknowledged that its efforts have only mitigated fluctuations rather than halting the currency’s rise. He emphasized that the goal is to reduce volatility and prevent excessive strength that could harm exporters and the broader economy, noting that the bank does not target a specific exchange rate and operates within international agreements.

-Thailand News (TN)