Thailand’s foreign exchange reserves have reached an all-time high of US$301.9 billion amid a firmer baht and a surge in gold prices this year.
The rise came as the Bank of Thailand continued to stabilize the baht as capital flows and currency strength exert upward pressure, according to Nation Thailand.
A display of gold ornaments at a gold shop in Chinatown, Bangkok, Thailand, 10 March 2022. Photo by NurPhoto via AFP |
Gold price has gone up 70% globally this year, its strongest annual growth in 46 years.
Thailand has the highest gold reserves in Southeast Asia at 234.52 tonnes, accounting for 10.6% of its total reserves. It is followed by Singapore with 204.71 tonnes, according to the World Gold Council.
In the first 11 months the country’s gold imports jumped 44% to $20.24 billion, with the top sources being Switzerland, Hong Kong and United Arab Emirates.
Demand for gold in Thailand has become so intense that revenue at the country’s largest gold trading house Hua Seng Heng is set to outstrip the government’s entire fiscal 2026 budget.
The company is on track to generate a record THB5 trillion baht (US$156 billion) in revenue this year, exceeding the Thai government’s 2026 budget of THB3.8 trillion, according to financial news platform FXStreet.
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