An unexpected increase in gold exports from Thailand to Cambodia has sparked a call for investigation, raising concerns over the impact on the Thai baht and the broader economy. In the first seven months of 2025, Thai gold shipments to Cambodia soared by 19% compared to the previous year, reaching an impressive 71.3 billion baht (approximately $2.25 billion). This trajectory suggests a potential record-breaking year that could exceed last year’s total of 106 billion baht.
The volume of gold being shipped to Cambodia is prompting comparisons with significant trading and refining centers like Switzerland and Singapore, as it becomes a prominent destination for Thai gold. The recent surge has led to questions about the motivations behind the trade and its ramifications on the rapid appreciation of the baht observed this year.
The Bank of Thailand (BOT) has acknowledged the need to address the volatility of the baht and manage the influence of fluctuating gold prices. Concerns about the surge have been voiced by the Federation of Thai Industries (FTI), with Chairman Kriengkrai Thiennukul commenting on the inconsistency of Cambodia’s gold demand relative to its size. He highlighted the necessity for scrutinizing these transactions, warning that they might be related to illicit activities such as money laundering or funding from dubious sources like casinos.
Additionally, another factor exerting pressure on the baht appears to be the outflow of remittances from Thailand’s estimated 4 million registered migrant workers, with an even larger number likely participating illegally. These remittances to neighboring countries, including Myanmar and Cambodia, may contribute to reduced liquidity in the domestic market, further straining the currency.
In response to these developments, the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from the FTI, is scheduled to meet with BOT Governor Sethaput Suthiwartnarueput next week. They plan to address various concerns, including the influence of a strong baht on export competitiveness and tourism, as well as measures to support small- and medium-sized enterprises. The committee intends to highlight the troubling increase in gold imports to Cambodia and the ongoing effects of remittances from migrant workers.
FTI Chairman Kriengkrai noted that while a strengthening baht is acceptable when aligned with global trends, its disproportionate appreciation poses significant challenges for the Thai economy, particularly at a critical juncture for exports and tourism. He emphasized the urgent need for policymakers to prioritize the health of the economy in light of these developments.
