Thai Gold Plan May Curb Baht Without Incurring U.S. Anger
- Central bank plans to switch local gold trading into dollars
- Baht may still rise over long term due to reserves, surplus
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The Bank of Thailand’s plan to sever the link between gold trading and the baht may be a way to limit the currency’s long-term gains without incurring the wrath of the U.S. over foreign-exchange manipulation.
The Thai central bank says it’s in talks with market participants about converting local gold trading to U.S. dollars, including futures, to reduce the baht’s strength. Policy makers have long complained the appreciating currency threatens to damage the country’s exports.