Thailand’s incoming finance minister pledged to work with the central bank to stabilise the baht and investigate irregular capital flows and gold trading.
Ekniti Nitithanprapas, who is set to take office as finance minister, made the pledge after Prime Minister Anutin Charnvirakul met with Thai Chamber of Commerce chairperson Poj Aramwattananont yesterday, September 18.
Ekniti said he had already begun talks with Vitai Ratanakorn, the incoming governor of the Bank of Thailand (BoT), to prepare measures aimed at curbing volatility.
“We have coordinated with the relevant authorities and discussed the approach with the new BoT governor. However, in practice, we must await the formal appointment before moving forward.”
He confirmed that the Finance Ministry is monitoring capital inflows and investigating irregularities, including unusual patterns in gold trading, which has surged this year.
The comments came as the baht weakened slightly on September 18, moving to 31.88 against the US dollar from 31.73 the day before. Despite this slip, the baht remains up around 8% since January, making it the second-strongest currency in Asia after the Taiwanese dollar.
The baht’s strength has worried exporters and the tourism industry, two key sectors that underpin Thailand’s economy, the second-largest in Southeast Asia. A stronger currency makes Thai goods more expensive abroad and reduces spending power for foreign tourists.
Earlier this week, the BoT signalled that it was considering measures to rein in the baht’s rise, including potential taxes on gold transactions. Thailand’s gold exports surged 82% year-on-year in the first seven months of this year, valued at US$7.6 billion (approximately 277.4 billion baht). Of that, around US$2.1 billion was shipped to Cambodia, raising questions about unusual trade flows.
Ekniti said that ensuring stability was critical for business confidence and economic growth. He said closer cooperation between the Finance Ministry and the BoT would help address volatility while safeguarding Thailand’s competitiveness, reported The Nation.
Once formally appointed, both he and Vitai are expected to roll out immediate measures, balancing the need to control capital flows with ensuring investor confidence.
The story Thailand finance chief vows to steady baht, probe gold trade as seen on Thaiger News.
