BANGKOK – Thailand’s foreign reserves have reached a new high, rising to $301.92 billion in late December. It is the first time the country’s international reserves have moved beyond the $300 billion mark.
A stronger Thai baht and a sharp jump in global gold prices have both helped to lift the total, while the Bank of Thailand (BOT) has worked to keep currency moves orderly during heavy capital flows.
The latest reserve data, released as markets thin out near year-end, put Thailand’s holdings at $301,919.17 million. That is a record level, beating earlier highs. Analysts link the rise to valuation gains on gold, plus central bank activity aimed at slowing the baht’s climb.
“This milestone reflects Thailand’s strong external position,” said Poon Panichpibool, a strategist at Krungthai Bank. “With reserves above $300 billion, the country has a larger cushion against global shocks.”
Thailand’s reserves include foreign currency assets, gold, special drawing rights, and its position with the IMF. They have grown quickly through 2025. From roughly $237 billion at the start of the year, the increase points to ongoing current account surpluses, seasonal inflows, and BOT steps to reduce sharp exchange rate swings.
The Rise of Thailand’s Baht
Thailand’s baht has been one of Asia’s stronger currencies in 2025. It has gained more than 10% against the US dollar and has recently moved past 31 baht per dollar, its firmest level in over four years. On 24 December, it touched multi-year highs and triggered public briefings from the Finance Ministry and the BOT.
A firm baht helps importers and people with foreign currency debt. It also puts pressure on Thailand’s export-led sectors. Producers are already facing softer overseas demand and high household debt at home. A stronger currency can squeeze margins by making Thai goods costlier abroad.
Many traders see the reserve rise as a sign of central bank action. To limit steep gains, the BOT is widely thought to have bought US dollars, lifting reserves while keeping price moves calmer. One Bangkok-based trader said the pace of reserve growth pointed to clear intervention to limit further baht strength.
The baht’s gains have come despite domestic challenges. The tourism recovery remains uneven, and politics could turn tense ahead of possible early elections in 2026. External forces have carried more weight, including a weaker US dollar after Federal Reserve rate cuts and greater demand for safer assets as global tensions rose.
Gold’s Surge Adds Extra Support
Gold has played a bigger role than many expected. Thailand is one of Asia’s key gold trading centres, and bullion deals can bring large foreign exchange flows.
Spot gold is up close to 70% in 2025, the strongest yearly rise since 1979. Prices recently pushed above $4,540 an ounce during thin holiday trading. Silver has risen even faster, up more than 150%. Central bank buying, ETF inflows, and safe-haven demand have all helped to drive the move, and Thailand’s gold-linked flows have fed into baht strength.
A Bloomberg analyst said Thailand’s active gold market had turned record bullion prices into added support for the baht. Local trading, ranging from major importers to online platforms, has led to sizeable dollar selling to pay for gold, which has put further upward pressure on the currency.
Authorities have started to watch the sector more closely. The BOT has tightened reporting rules for large gold-related transfers. The Finance Ministry is also considering taxes on online gold sales and possible volume limits for big players. The goal is to reduce speculative flows without harming normal trade.
Jitti Tangsitpakdee, president of the Gold Traders Association, played down the effects. He said the rules target only a small number of large operators and that baht moves account for about 7% to 8% of changes in local gold prices.
The BOT Tries to Keep the Balance
Governor Vitai Ratanakorn has said the BOT will keep focusing on stable markets. In recent remarks, he pointed to the baht’s 2.2% outperformance against regional peers in early December and linked part of that strength to gold market activity.
The BOT can use direct intervention, macroprudential tools, and measures that manage capital flows. With reserves now covering more than nine months of imports, Thailand sits well above common global adequacy measures, giving policymakers plenty of room to act if needed.
Still, risks remain. An overly strong baht can slow export growth, one of the country’s main engines, as Thailand heads into a 2026 outlook that economists see as modest. Policymakers have to support exporters while also staying ready for a sudden reversal in flows that could weaken the currency quickly.
Some analysts think the BOT will stay watchful into the new year and could ease some gold-related checks if the baht’s rise cools. “The reserve build-up adds time and credibility,” said Kobsidthi Silpachai of Kasikornbank. “It supports gradual change rather than sudden moves.”
A larger reserve pile strengthens Thailand’s credit profile and can lift investor confidence during uncertain global conditions. The buffer also helps if US policy shifts again under a returning Trump administration, or if trade tensions remain a drag on growth.
For households, a stronger baht can mean cheaper imports and lower costs for overseas travel. For exporters, the same move can cut competitiveness, which may add pressure in manufacturing areas.
As 2025 ends, Thailand’s record foreign reserves show how strong inflows, a buoyant gold market, and central bank action have combined to lift the country’s defences, even as global markets stay unsettled.
