PATTAYA, Thailand – Thailand’s central bank has identified the more than 40% surge in global gold prices as a key factor behind the recent appreciation of the Thai baht.
This rapid rise has prompted a rush of gold sales abroad, with foreign currency being converted back into baht, putting upward pressure on the currency and making it stronger than its regional counterparts. A Bank of Thailand (BOT) official noted that while a weaker U.S. dollar and improved domestic economic confidence are also at play, the relationship between gold prices and the baht is particularly volatile.
The BOT is now considering new measures to mitigate the pressure, including a proposal to encourage direct gold trading in U.S. dollars. The central bank plans to meet with gold traders next week to follow up on this and other joint initiatives aimed at stabilizing the currency.
For tourists visiting Pattaya, the stronger baht has immediate implications. Many long-term visitors and holidaymakers are seeing their purchasing power reduced, with overseas currencies now weaker against the Thai baht. Activities such as dining out, shopping, and entertainment along Walking Street, Jomtien Beach, and local markets are effectively more expensive, dampening spending for visitors who planned on enjoying a budget-friendly stay.
A striking scene on Pattaya Beach highlights the contrast: a fit Thai woman bathes in the scorching sun, holding strong baht and gold with no worries, while many foreign visitors may face shorter or less indulgent vacations due to the strengthened currency.
Additionally, foreigners who had planned to buy gold jewelry or ornaments as gifts—traditionally a popular souvenir—may find the high prices increasingly prohibitive, adding further strain on travel budgets.
With Pattaya heavily reliant on international tourism, continued baht strength could affect both short-term visitor spending and long-term sentiment among long-term residents.
BOT officials stressed the need to balance currency stability with the broader economic impact, particularly on tourism-dependent regions like Pattaya, as they explore measures to ease pressure from gold-driven baht appreciation.
