Bangkok: The Bank of Thailand (BOT) has issued an apology for the suspension of mule accounts, which has inadvertently affected honest citizens. The Governor of the BOT, Dr. Sethaput Suthiwatnarueput, expressed concern over the potential impacts on Thailand's fiscal stability and the possibility of a credit rating downgrade. Additionally, he acknowledged ongoing discussions about taxing online gold trading as a measure to curb the strength of the baht.
According to Thai News Agency, Dr. Suthiwatnarueput addressed these issues during the "Meet the Press" event, where he confirmed that discussions with the Gold Traders Association are ongoing, though no definitive conclusions have been reached. The potential tax on online gold trading aims to address the strong demand for gold among Thais, which influences the country's currency dynamics. Thailand's significant gold exports, traded in dollars but converted to baht, have contributed to the appreciation of the baht, prompting discussions on mitigating this effect.
In collaboration with the Anti-Money Laundering Office (AMLO), the BOT is investigating a notable increase in gold exports to Cambodia, amid concerns about illegal investor involvement. The Governor reiterated that no decisions have been finalized regarding the taxation of gold trading, emphasizing the need for careful evaluation due to the potential impact on various stakeholders.
The Gold Traders Association has proposed the introduction of a foreign currency clearinghouse to complement the existing baht clearinghouse, although this proposal has not yet been reviewed by the BOT. Discussions are anticipated to further explore ways to lessen the impact of gold trading on the baht. Dr. Suthiwatnarueput confirmed that he will not pursue a political career after his tenure at the BOT.