BoT measures to halt rapid baht uptick

Currency gaining in recent weeks

- NAREERAT WIRIYAPONG

The Bank of Thailand's proposed tax reforms, tightening of gold oversight, and an anticipated interest rate cut could ease upward pressure on the baht, which has appreciated nearly 7% year-to-date to trade at stronger than 32 baht to the dollar, according to pundits.

The central bank said the Finance Ministry should raise the limit for foreign income that does not need to be repatriated to US$10 million per transaction, up from $1 million, with implementation expected this month.

The move is expected to give firms greater flexibility in managing foreign revenue, while reducing the amount of foreign exchange being brought into the country.

The regulator is also tightening scrutiny of gold-related forex flows, instructing financial institutions to adopt stricter due diligence procedures before processing transactions.