Finance Ministry objects to gold trading controls


Thailand’s Ministry of Finance does not agree with a central bank proposal to control gold trading in the domestic market, Deputy Prime Minister Kittiratt Na-Ranong said today.

The concurrent finance minister said the Finance Ministry years ago revised domestic gold trading regulations in accord with the global market and it would not be necessary to revise the controls again.

Gold is an asset equivalent to currency and its price scales up when currencies weaken, said Mr Kittiratt.

The Bank of Thailand, in its proposal to the Finance Ministry, expressed concern about gold speculation which could negatively impact currency exchange and the country’s trade balance, leading to a current account deficit.

Mr Kittiratt said a big import of gold could strengthen the baht but it did not frequently happen, and free trade of gold should be allowed as some people buy gold as their savings.

Regarding a proposal to set up a futures market for gold, he said related agencies would have to discuss the issue since gold trading is conducted in many different forms and locations.

The public sector is willing to support and look after investors, he said.