BANGKOK, 31 Oct 2013 Deputy Commerce Minister Yanyong Phuangrach has recently met with the Gold Traders Association to lay down guidelines to regulate the gold trading system.
According to the deputy minister, the actual gold trade only stands at 300 billion baht annually, a one-third of the total trading value of 1 trillion baht per year. He said that this massive cash circulation has a tendency to negatively affect the overall national economic system such as the baht value. He explained that trading is usually conducted in US dollars while pricing is based on current economic outlook and demand instead of using the actual gold prices.
He said at the moment there is a huge demand for gold; thus the Government needs to monitor the movement in order to prevent negative impacts on the country’s economy and possible fraudulent activities.
Mr. Yanyong nonetheless stated the Finance Ministry already has several policies of its own in dealing with such cases. He also said his Wednesday’s meeting with the gold trading association was aimed at establishing clarity before they jointly work out a guideline to regulate the gold trading system.