Thailand's Gold Exports to Cambodia Surge Amid Baht Appreciation Concerns

Thailand's gold exports to Cambodia have surged dramatically, making Cambodia the country's second-largest gold export market after Switzerland, with exports reaching over $2 billion in the first seven months of 2025. This rise has raised concerns among Thai business leaders and economic committees, who suspect the unusual volume of gold shipments may be artificially strengthening the Thai baht, contrary to economic expectations given recent interest rate cuts and weak domestic conditions. The Joint Standing Committee on Commerce, Industry, and Banking and the Joint Private Sector Committee are investigating these exports, with some officials worried about potential illegitimate activities linked to Cambodia's reputation as a hub for scams. However, gold traders such as Dr. Kritcharat Hirunyasiri of MTS Gold Group emphasize that the gold trade is legal, conducted through licensed dealers, uses US dollars rather than baht, and does not involve grey market transactions or directly impact the baht’s value. Meanwhile, Thailand is actively working to establish itself as Southeast Asia's gold trading hub, with major gold firms partnering to launch a Thai benchmark gold price by 2026 to provide a regional standard and enhance market transparency. This initiative reflects Thailand's growing prominence in the gold market amid rising exports and trade volumes in the region.