Thailand’s Soaring Gold Exports to Cambodia Linked to Riel Volatility

 

Thailand's Ministry of Finance is scrutinising an extraordinary surge in gold exports to Cambodia, with officials suggesting that a lack of confidence in the Cambodian currency, the riel, is driving citizens to purchase gold as a stable alternative.

 

This trend is believed to be a contributing factor in the recent strengthening of the Thai baht.

 

Pornchai Thirraveja, the Director of the Fiscal Policy Office and spokesperson for the Ministry of Finance, told Post Today that authorities are examining a recent report that Thai gold exports have risen significantly, particularly to Cambodia.

 

This increase is seen by some as abnormal and a source of upward pressure on the baht's exchange rate.

 

Pornchai clarified that a thorough analysis is needed to determine whether the jump in export value is due to a higher volume of gold being shipped or simply an increase in the global price of gold.

 

"If the value increase is solely due to rising prices, it might not accurately reflect a real outflow of gold in terms of quantity," he explained.

 

He added that Cambodia's increased gold imports from Thailand may stem from domestic concerns over the stability of the riel, prompting people to acquire gold and foreign currencies.

 

 

The proximity and established trade links between the two countries make Thailand a convenient source for these purchases.

 

“Cambodia might be experiencing a lack of confidence in its own currency, leading them to hold gold and other foreign currencies instead," he said. "The reason they are importing from Thailand is because we already have a regular trading relationship and a shared border that provides a constant supply."

 

Regarding a proposal from Vorapak Tanyawong, a prospective Deputy Minister of Finance, to implement tax measures and use the US dollar instead of the baht for gold transactions to ease pressure on the Thai currency, Pornchai stated that he was not yet aware of the policy discussion.

 

"This is a policy-level issue, and the question should also be directed to the Bank of Thailand to see if it's relevant to the baht's value," he noted, adding that he had no information on whether similar tax measures had been used in the past.

 

Official data from the Ministry of Commerce shows a continuous rise in Thailand's gold exports to Cambodia over the past few years.

 

 

The export value was 8.627 billion baht in 2021, rising to 55.781 billion baht in 2022, before a slight dip to 12.562 billion baht in 2023. By 2024, the value had soared to 105.982 billion baht.

 

For the first seven months of 2025, Thailand has already exported gold worth 71.312 billion baht to Cambodia. If the current trend holds, the total export value for the year could hit a record 160 billion baht, surpassing the previous high set last year.

 

Vorapak also cited examples from countries like Dubai and India, which have implemented tax schemes to support gold trading in US dollars and manage currency flows.