Thailand Orders Banks to Flag Big Foreign Cash Inflows. Thailand is ramping up control over foreign capital inflows as part of a strategy to regulate baht movements. The Bank of Thailand announced that banks must report any non-resident capital inflows exceeding $200,000 (approximately 7,020,000 Thai baht). Governor Vitai Ratanakorn confirmed that the move aims to enhance oversight, marking the first time such inflows undergo scrutiny for purpose and documentation. ASEAN NOW

 

Thailand is ramping up control over foreign capital inflows as part of a strategy to regulate baht movements. The Bank of Thailand announced that banks must report any non-resident capital inflows exceeding $200,000 (approximately 7,020,000 Thai baht). Governor Vitai Ratanakorn confirmed that the move aims to enhance oversight, marking the first time such inflows undergo scrutiny for purpose and documentation.

 

This new regulation will be effective from Monday, with banks also required to report gold trading transactions on digital platforms daily and per transaction. The decision comes amid the baht's recent swift appreciation against the US dollar, outpacing currencies like the Malaysian ringgit, Singapore dollar, and Chinese yuan. The baht has strengthened by 4.2% against the dollar monthly and 9.4% for the year, raising concerns about its impact on exporters.

 

Governor Ratanakorn stressed the need for detailed information to understand currency movements, noting the significant role of gold speculation in the baht's appreciation. Gold trading through online platforms represented a substantial portion of foreign exchange transactions, peaking at 60% in August. Consequently, the Bank of Thailand is implementing stricter regulations on these transactions.

 

Discussions between the central bank, the Ministry of Finance, and the Securities Commission explored the potential implementation of a special business tax on online gold trading, pending review by the Revenue Department. Vitai acknowledged the central bank's recent interventions to mitigate baht volatility, stressing the desire to prevent the currency's strength from negatively impacting the economy.

 

While managing volatility remains a priority, the bank reiterated that it cannot set or manipulate the baht's value due to international agreements. This position underscores the precautionary nature of the latest measures aimed at stabilising financial markets, according to a report by the Bangkok Post.

 

Key Takeaways

• Thai banks are to report non-resident inflows exceeding 7,020,000 baht.
• Gold trading transactions on digital platforms face new reporting rules.
• Measures aim to manage rapid baht appreciation against the US dollar.

 

 

  Adapted by ASEAN Now from Bangkok Post 2025-12-26