Thailand's central bank wants to avoid unintended consequences from any measures such as a tax on gold trading that it takes to curb the baht's strength, a senior Bank of Thailand official said on Tuesday.
The baht's rise to a four-year high against the U.S. dollar is seen as a threat to exports and tourism, two key drivers of Thailand's economy as it struggles with U.S. tariffs and high household debt.
"Imposing a tax on gold will not solve the issue of the strong baht," Assistant Governor Chayawadee Chai-anant told a press conference, though she said it would reduce the upward pressure on the currency.
"We want to prioritise market-based solutions first to encourage people to trade (gold) in dollars more. This is the initial step we aim to take," she said, saying the baht's gains were driven by the weak dollar, a current account surplus and gold trading.
Last week, the BOT said it had discussed a tax on gold trading among other measures to stabilise the baht, and Chayawadee said the central bank would meet with gold traders next week.
"Tax measures are one of the matters being discussed, and if it (the baht's rise) gets very severe, they must be considered," she said, adding the BOT needed to be wary of unintended consequences of any actions that it took.
"We need to thoroughly analyse the data we currently have and determine the most appropriate solutions. If we are going to address the issue, we must tackle the root cause."
The central bank is part of a multi-agency team the government is setting up to counter the baht's rise. Chayawadee said the BOT will continue to smooth out excessive currency volatility.
Chayawadee also announced that improved record keeping had more than halved the balancing item on the 2024 balance of payments, known as net errors and omissions, to $7.3 billion from the $15.2 billion reported in March. The item was at $2.34 billion in the first quarter of 2025.
She said the level of net errors and omissions was not too high and it did not reflect illicit business activity, after some concerns were raised that the balancing item could be a factor pushing up the baht.
Southeast Asia's second-largest economy is projected to expand by 1.8% to 2.3% this year, according to the state planning agency. Last year's growth of 2.5% lagged its regional peers.
