Group 1 - The Thai government agencies, including the Bank of Thailand, have been advised to take swift action to maintain the Thai baht at an appropriate level due to its appreciation impacting exporters, particularly in agriculture and food sectors, which are crucial as exports account for 60% to 70% of Thailand's GDP [1] - The appreciation of the baht has led to a profit margin squeeze for exporters, with a reported increase of 7% to 10% in the baht's exchange rate against the dollar in 2025, continuing to rise [1] - The Thai National Shipowners Association has indicated that the baht's appreciation could reduce export revenues by 5% to 10%, affecting profit margins if product prices cannot be increased [1] Group 2 - The central bank is urged to closely monitor the baht's appreciation trend to prevent excessive exchange rate disparities with neighboring currencies and to regulate short-term speculative activities [2] - The Vice President of the Federation of Thai Industries has expressed concerns that without immediate measures, Thailand's competitiveness in the global market will decline, potentially leading to a decrease in foreign tourist numbers [3] - The FTI has called for better government responses to fluctuations in the baht's exchange rate caused by currency trading, capital flows, and gold and digital asset transactions, aiming to curb speculative behavior and excessive volatility [4] Group 3 - The Bank of Thailand's Governor has noted that the baht's rise to 31 baht per dollar is primarily driven by rising gold prices, with gold trading accounting for approximately 35% of all foreign exchange transactions [5] - The central bank is preparing to issue notifications requiring large domestic gold traders to report transactions made in baht through mobile applications, with proposed daily transaction limits set between 50 million to 100 million baht [5]

Core Viewpoint - The Bank of Thailand has mandated financial institutions to report details of foreign exchange forward transactions by gold traders, as such transactions may exacerbate fluctuations in the Thai baht's exchange rate [1] Group 1: Regulatory Changes - The Assistant Governor of the Financial Markets Department stated that banks must request proof of gold sales from foreign counterparties for each transaction involving gold shops [1] - Gold shops are required to submit proof of fund consolidation and gold shipment declaration documents within two working days after the foreign exchange delivery [1] - The central bank is currently soliciting public opinions on proposed amendments to foreign exchange management regulations, which would require large gold traders to report all relevant transactions to the central bank [1] Group 2: Impact on the Thai Baht - The proposed regulatory changes aim to strengthen oversight, assess the impact of gold trading on the Thai baht, and support the formulation of corresponding policy measures [1]

Core Viewpoint - The Thai Baht has experienced a decline from a three-year high, underperforming against other Asian currencies, as traders assess the impact of the conflict between Thailand and Cambodia [1] Currency Performance - The US Dollar has risen by 0.2% against the Thai Baht, reaching 32.23, after previously dropping by 0.2% to its lowest level since February 2022 [1] - The Thai Baht's performance is notably weaker compared to other Asian currencies during this period [1]

Core Viewpoint - The Bank of Thailand indicates that the Thai baht is expected to experience high volatility and will closely monitor the exchange rate [1] Group 1 - The central bank's statement highlights concerns regarding the fluctuations in the Thai baht's value [1] - The Bank of Thailand's commitment to closely observe the exchange rate suggests potential interventions or policy adjustments in response to market conditions [1]