Premier Declares Crisis Mode
Bangkok – Thailand’s Prime Minister Anutin Charnvirakul has raised the alarm as the Thai Baht surged 7 percent since the start of 2025, putting exporters and manufacturers under severe strain. At a crisis meeting with the Federation of Thai Industries (FTI), he promised “decisive immediate measures” to tackle the currency crisis. Simultaneously, authorities launched a full investigation into soaring gold exports to Cambodia amid fears of smuggling networks exploiting the precious metal to bypass international sanctions.
Borders Closed Amid Security Concerns
Anutin made it clear that Thai-Cambodian border crossings will remain closed under his transitional government until proper monitoring is guaranteed. Newly appointed Finance Minister Ekniti Nitithanpraphat will continue direct talks with industrial leaders while the government aggressively addresses economic challenges during its eight-month tenure.
Gold Exports Soar 69 Percent
The figures are staggering: Thailand’s gold exports jumped 69 percent in the first seven months of 2025, totaling 254 billion baht (approx. €6.6 billion). Skyrocketing global gold prices, up nearly 40 percent, have intensified pressure on the Baht. Bloomberg reports that the Finance Ministry and central bank are considering new taxes on Baht-denominated gold, while exempting purchases in USD or authorized channels. The goal: curb speculative outflows and stabilize the currency.
Authorities Target Speculation
Bank of Thailand Deputy Governor Pimphan Charoenkhwan revealed ongoing talks with gold traders to propose measures that reduce speculative trading and protect the Baht. Authorities recently arrested a South Korean national suspected of laundering funds through gold and cryptocurrencies, highlighting the risks of high-value commodities in illicit financial transfers.
Exporters Sound Alarm
The Baht traded at 31.74 per USD on Monday, reaching a four-year high last week at 31.57. Rice traders and exporters are urging decisive intervention to prevent further appreciation. The FTI recommends a sustainable exchange rate of 34–35 Baht per dollar to preserve industrial competitiveness. The Bank of Thailand last month cut its policy rate to 1.50 percent – a three-year low – and analysts predict it could drop to 1 percent by late 2026.
Coordinated Measures in Motion
Premier Anutin emphasized the interconnected challenges of border management, gold exports, and currency stability. Coordinated actions between the Finance Ministry, central bank, and industry aim to monitor investor behavior in the gold market and prevent speculative pressure on the Baht. Military and diplomatic channels are ready to enforce border compliance, while economic measures target illegal flows and support formal trade.
Transitional Government Under Pressure
With only four months before elections, Anutin’s transitional administration faces intense pressure to implement effective economic measures while balancing short-term interventions with sustainable growth policies. Thailand’s economy is projected to grow 1.8–2.3 percent in 2025, but growth is expected to slow in H2 due to US tariffs, weaker global demand, and high debt levels.
Quantitative Easing on the Table
A key proposal under consideration is quantitative easing: printing more Baht to boost liquidity, weaken the currency, and increase inflation. Incoming central bank governor Vitai Ratanakorn, taking office October 1, may implement this strategy to stabilize the economy amid unprecedented market volatility.