Thai baht under watch

As Thailand heads to the polls this Sunday, the campaign trail has been crowded with promises of wage hikes, subsidies and generous domestic giveaways.

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Yet last week, a far more sobering message arrived from Washington.The US Treasury has placed Thailand back on its currency monitoring list, a move that carries implications well beyond a routine financial assessment.

For the incoming government, this is not a technical footnote to be filed away. It is an early test of credibility and economic judgment, waiting on the desk from the first day the new cabinet takes office.

The timing is especially sensitive. Since December, the baht has appreciated by around 2.5%. One contributing factor is the global surge in gold prices, a factor that is far beyond the Bank of Thailand's direct control. As prices reached record highs, a spike in online gold trading by Thai investors led to higher dollar inflows being converted back into baht, strengthening the currency. This dynamic, however, is only part of a broader picture shaped by capital flows and external conditions.