Central bank imposes Bt50m online gold cap to curb baht volatility from March 1

The Bank of Thailand has imposed limits on the trading of gold via online platforms, which use the baht currency for settlement, of Bt50 million per person per platform, effective from March 1, in an attempt to ease pressure on the baht currency.

Lalida Periswiwatana, deputy spokesperson for the PM's Office, said that the limits will, however, not be applied to gold trading in US dollars, ordinary gold shops, gold savings platforms, which are not intended for trading, or trading in gold futures.

She added that individuals who owned gold worth more than Bt50 million before January 30 can sell it with no time restrictions.

Buyers and sellers are not permitted to use other people’s bank accounts to settle the payments and the payments must be paid in full via online banking systems without net settlement, meaning that each payment is settled immediately and irrevocably among other restrictions.

The buyers are also required to accept delivery of the traded gold themselves, she said, the sellers must also have the gold in their possession.

This measure is intended to reduce fluctuations in the value of baht and to improve the standard of gold trading, adding that it is not being applied to gold traders or producers, she said.