Bank of Thailand Closely Watching Impact of Gold Trading on Baht

(Bloomberg) -- Thailand central bank is closely monitoring gold transactions that could affect the currency, Don Nakornthab, a senior director in the Bank of Thailand’s economic and policy department said.

“Not only gold exports that put pressure on the baht but also money trading related to gold transactions,” Don said at the briefing on last month’s current account that showed a surplus of $64 million against a median estimate of a $595 million deficit in a Bloomberg survey.

Bank of Thailand is monitoring baht movement as its strength “has become a negative factor for the economy,” Don said.

The economy will probably improve in the third quarter after bottoming from an estimated double-digit contraction in the April to June period as the government ease movement restrictions implemented to stem the coronavirus pandemic, he said. High base of gold exports in the second half of 2019 may put pressure on exports later, Don said.

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