Thais dipping into gold savings undermine steps to rein in baht, Energy & Commodities

Wed, Dec 30, 2020 – 5:50 AM

Bangkok

GOLD sales in Thailand are surging as households reach for a financial lifeline amid the pandemic, a tactic that risks complicating government efforts to tame an export-stifling rally in the nation’s currency.

Exports of the precious metal surged to a record this year as prices climbed and Thais unloaded jewellery, bars and medallions to raise cash for routine expenses.

Bullion traders expect the trend to continue into 2021 as Covid-19 drags on tourism and manufacturing, the mainstays of Thailand’s economy.

“Gold is easier to sell than land or condominiums,” said Pawan Nawawattanasub, the chief executive officer of YLG Bullion International, one of Thailand’s top gold traders.

“Thai people still have high stockpiles of gold, as the nation has been more of a net importer…