Ms. Pimpan Charoenkwan, Assistant Governor of the Financial Markets Group at the Bank of Thailand (BOT), stated that the BOT has instructed financial institutions to increase scrutiny of forward foreign currency sales by gold traders, which might contribute to greater baht volatility. Financial institutions are required to verify evidence of gold sales with foreign trading partners for every transaction from gold shops. Additionally, they must obtain payment invoices and gold export declarations within two business days from the date the gold shops deliver the foreign currency. This ensures that the foreign currency sales are genuinely backed by gold exports.
Meanwhile, the BOT is currently gathering public feedback on proposed revisions to foreign exchange control regulations. The proposal includes requiring major gold traders to report relevant transaction data to the BOT. This measure aims to enhance the effectiveness of transaction monitoring, assess impacts on the baht, and consider appropriate related policies.
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