Thai gold traders respond to JSCCIB's claim of gold exports to Cambodia driving baht appreciation
MTS Gold clarifies that gold exports to Cambodia are legally compliant, using US dollars and not affecting the Thai baht’s value, refuting JSCCIB’s claims.
In response to claims from the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) that gold exports to Cambodia may be contributing to the abnormal appreciation of the Thai baht, Dr Kritcharat Hirunyasiri, Chairman of MTS Gold Group, one of Thailand’s largest gold traders, has clarified the facts. He emphasised that international gold trading is conducted legally and does not involve “grey market” transactions, nor does it affect the value of the baht, especially in light of its recent appreciation.
MTS Gold’s four key clarifications:
1. Compliant with customs regulations: The gold export to Cambodia is part of international trade, processed through the proper customs channels in both countries, and is not considered "grey money" as alleged.
2. Licensed Cambodian traders: The Cambodian Gold Traders Association has verified that gold trade is conducted with licensed dealers, of which there are only 3-4 in Cambodia. These traders are legally authorised, not part of the "grey business" as claimed.
3. Dollar transactions unaffected by the baht: Gold trading between Thailand and Cambodia uses the US dollar for both imports and exports, meaning it does not impact the Thai baht. The claims that gold trade is making the baht appreciate are unfounded.
4. Thailand as ASEAN’s Gold Hub: Over the past five years, Thailand has seen an increase in gold exports, particularly to Switzerland and neighbouring countries. The growth of Thailand’s gold industry makes it no surprise that exports to Cambodia are also rising.
Kritcharat further criticised the JSCCIB’s unfounded suspicions, pointing out that such claims, without first verifying the facts, could cause misunderstandings and negatively impact Thai gold traders. He highlighted that the JSCCIB itself is working towards establishing Thailand as the gold trade hub of ASEAN.
Additionally, Kritcharat reiterated that the appreciation of the baht is primarily driven by the weakening US dollar, not the rising gold prices. He stressed that it is normal for the baht to strengthen as the dollar weakens. In terms of trade, Thailand’s position is far superior to that of Cambodia, Laos, Vietnam, and Malaysia, so concerns about the baht’s value should fall under the remit of the relevant authorities, not the private sector.
Kritcharat also noted that currently, only 3-4 Thai gold traders export gold abroad, including to Cambodia, which has been criticised due to its smaller market size. However, he pointed out that Cambodia’s ability to purchase large quantities of gold and resell it successfully reflects the country's capabilities, bolstered by its proximity to major markets such as Vietnam and China. He urged that such accusations should not lead to misunderstandings or unfounded concerns about money laundering.
Gold Traders Association confident in the ability to verify exports
Jitti Tangsitpakdee, President of the Gold Traders Association of Thailand, stated that after checking the data, the value of gold exports to Cambodia is approximately 60 billion baht, which is lower than the previous year and accounts for about 10% of Thailand's annual gold exports, which amount to several hundred billion baht. The countries where Thailand exports the most gold are Singapore and Hong Kong.
At the same time, traders who act as intermediaries in gold transactions in Thailand, where gold is in short supply, import it from Singapore or Hong Kong and pass it through Thailand, which does not impose taxes on it, before exporting it to Cambodia. Normally, gold exports must go through banking transactions and customs declaration with the Customs Department. It is believed that the Anti-Money Laundering Office (AMLO) can trace the export paths of gold from Thailand to other countries. The AMLO will need to verify the facts further.
Additionally, the export of gold through intermediaries is a process of buying and selling, not immediate transactions, and in small quantities. Jitti confirmed that this does not impact the exchange rate of the baht or the price of gold.
According to data from the Department of Foreign Trade, Ministry of Commerce, the export of gold to Cambodia has been showing an increasing trend each year. In 2021, the value was THB 8,627 million, in 2022 it rose to THB 55,781 million, in 2023 it stood at THB 12,562 million, and in 2024, the value surged to THB 105,982 million. In the first seven months of 2025 (January to July), Thailand exported gold to Cambodia worth THB 71,312 million.
Thailand's key gold export markets include Switzerland, Singapore, Hong Kong, Laos, Indonesia, Japan, India, the United States, China, and Cambodia.
For the first seven months of 2025 (January to July), Thailand's top 10 gold export markets were:
- Switzerland – THB 108,145 million
- Cambodia – THB 71,312 million
- Singapore – THB 34,826 million
- Hong Kong – THB 10,005 million
- Laos – THB 8,031 million
- United States – THB 6,628 million
- Indonesia – THB 5,725 million
- United Arab Emirates – THB 4,411 million
- Japan – THB 1,629 million
- India – THB 1,495 million
