BANGKOK - Thailand will widen a crackdown on cartels dealing in counterfeit dollar bills to shield local investors seeking haven in the US currency after the baht tumbled to a 16-year low.

Prime Minister Prayut Chan-o-cha has ordered enforcement agencies to strictly monitor the circulation of counterfeits and seize them, government spokesman Anucha Burapachaisri said in a statement Tuesday.

The order to hunt down counterfeiters followed the seizure of bills worth US$900,000 (S$1.3 million) near Bangkok last week in a joint operation by Thailand's cyber crime investigation bureau and officials of the US embassy, according to Mr Anucha.

Fake bills were also found to be in circulation in Thailand's neighbouring countries in the past, he said.

Those found guilty of dealing in fake currencies are liable for life imprisonment, or a jail term of as many as 20 years and a minimum fine of 20,000 baht (S$755), he said.

The baht has lost more than a fifth of its value against the US dollar since the end of 2020, driving gullible investors to flock to ponzi forex schemes offering hefty returns.

The Thai authorities are investigating complaints against a popular YouTuber for allegedly cheating thousands of her followers of about US$55 million through a foreign exchange trading scam.

The counterfeit syndicate busted by police were found to be distributing fake bills through money changers and other online platforms, Mr Anucha said. BLOOMBERG