Post by : Raman

Thailand has seen a major increase in gold exports to Cambodia this year, raising questions about the reasons behind the surge and its impact on the Thai economy. Officials from Thailand’s Ministry of Finance say the trend may be linked to concerns in Cambodia over the stability of its currency, the riel. Citizens in Cambodia appear to be turning to gold as a safer alternative for holding wealth, which has resulted in higher demand for Thai gold.

According to Pornchai Thirraveja, the Director of Thailand’s Fiscal Policy Office, authorities are closely examining the rise in gold exports. He stated that while the export value has grown significantly, it is not yet clear whether this increase is due to a higher quantity of gold being shipped or simply rising global gold prices. “If the value increase is solely due to rising prices, it might not accurately reflect a real outflow of gold in terms of quantity,” Pornchai said.

The surge in exports has also contributed to the strengthening of Thailand’s currency, the baht. Analysts suggest that as more gold leaves Thailand for Cambodia, demand for the baht may rise, causing upward pressure on its exchange rate. Thailand and Cambodia share strong trade links and a long border, which makes Thailand a convenient source of gold for Cambodian buyers.

“Cambodia might be experiencing a lack of confidence in its own currency, leading people to hold gold and foreign currencies instead,” Pornchai explained. This has led to increased purchases of Thai gold, reinforcing the trend of gold being seen as a safer store of value during economic uncertainty.

Thailand’s Ministry of Commerce has provided official data showing that gold exports to Cambodia have been rising steadily over the past few years. In 2021, the total value of gold exports to Cambodia was 8.627 billion baht. This rose dramatically to 55.781 billion baht in 2022, before a dip to 12.562 billion baht in 2023. By 2024, the value had surged again to 105.982 billion baht. For the first seven months of 2025, gold exports to Cambodia have already reached 71.312 billion baht, and if the trend continues, Thailand could surpass the previous record, reaching an estimated 160 billion baht by year-end.

Thailand is also looking at policy-level measures to address the situation. Vorapak Tanyawong, a prospective Deputy Minister of Finance, has suggested that Thailand could consider implementing tax schemes similar to those used in Dubai and India. Such measures would allow gold trading in U.S. dollars instead of the baht, potentially easing upward pressure on Thailand’s currency. However, the Ministry of Finance has yet to comment on whether these proposals will be considered or implemented.

The growing gold trade highlights wider economic concerns in Cambodia. The Cambodian riel has experienced periods of volatility, and citizens are reportedly seeking safer assets like gold to protect their wealth. This has driven an abnormal rise in gold imports from Thailand, which is already a major regional supplier of the precious metal.

Thailand’s central bank, the Bank of Thailand, has convened talks with gold traders to better understand the recent trends and assess any impact on the domestic economy. Officials have not indicated whether there will be immediate regulatory changes, but they are closely monitoring the situation.

Experts also note that Thailand’s position as a major gold exporter in Southeast Asia gives it an important role in regional financial stability. By supplying Cambodia with gold, Thailand provides an alternative for Cambodians concerned about the riel. However, the increase in exports also affects Thailand’s domestic currency value, making it necessary for policymakers to balance trade and currency stability.

The surge in gold exports is part of a wider trend across ASEAN, where countries are increasingly using gold and foreign currencies as a hedge against local economic uncertainties. Analysts predict that this trend could continue if currency instability persists in neighboring countries. Thailand, with its strong gold production and export infrastructure, is well-positioned to meet growing regional demand.

In conclusion, Thailand’s gold exports to Cambodia have risen sharply due to concerns over the Cambodian riel. The trend has contributed to the strengthening of the Thai baht and drawn attention from government authorities. While officials continue to investigate the reasons behind the surge, proposals such as using U.S. dollars for gold trading are under consideration to manage currency pressures. With gold serving as a safe asset during uncertain times, both Thailand and Cambodia are navigating complex economic challenges that highlight the importance of stable trade and financial systems in the region.

The ongoing monitoring by Thailand’s Ministry of Finance and the Bank of Thailand ensures that the gold trade remains regulated while addressing potential impacts on the local economy. Moving forward, policymakers will need to find a balance between supporting regional trade and maintaining currency stability, ensuring that Thailand continues to play a central role in the ASEAN gold market while protecting its own economic interests.

Thailand gold exports, Cambodia gold imports, Thai baht strengthening, Cambodian riel concerns