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 jewelry, bars and medallions to raise cash for routine expenses. Bullion traders expect the trend to continue into 2021 as the coronavirus drags on tourism and manufacturing, the mainstays of Thailand’s economy.

“Gold is easier to sell than land or condominiums,” said Pawan Nawawattanasub, 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 was more of a net importer than exporter in the past.”

Quick cash from more than 1,800 gold shops across the nation has been one of the most common ways Thais have weathered the economic downturn, in addition to taking out short-term loans, skipping debt payments and finding second jobs.

As a result, gold exports jumped to 237.4 tons during the January-October period, compared with 170 tons for all of 2019, official data show. Net exports of 135 tons during the first 10 months of this year are the highest since at least 2010, according to Thai Ministry of Commerce figures.

Those gold shipments, however, are widening Thailand’s current-account surplus, helping drive gains in the baht that threaten a fragile economic recovery. The baht has rallied more than 9 percent from its low in April, a surge also due to U.S. dollar weakness, while gold is up 25 percent this year after hitting a record in August.

The central bank is seeking to encourage more gold trading using foreign-currency deposits, an attempt to shield the baht from swings in sales of the precious metal when prices spike.

(SD-Agencies)