Thailand’s currency, the baht, has recently surged to its highest level in over four years, and at the heart of this dramatic appreciation lies a surprising culprit: gold exports to Cambodia. According to THE STANDARD and Prachachat, the first seven months of 2025 saw Thailand’s gold shipments to its smaller neighbor soar to an astonishing 6.8 billion baht, or roughly 2,149 million US dollars. This figure represents a 28.3% increase from the previous year and now accounts for 28.2% of Thailand’s total gold exports—a proportion that has left economists, business leaders, and government officials alike scratching their heads.
Why is this sudden spike in gold exports to Cambodia causing such a stir? For one, Cambodia is a relatively small market, making its new status as Thailand’s second-largest gold export destination—just behind Switzerland—all the more puzzling. The Thai Customs Department’s latest data, cited by both media outlets, confirms that 68,000 kilograms of gold were shipped to Cambodia between January and July 2025. While the overall value of gold exports grew by a modest 0.25% year-on-year, the Cambodia-bound shipments stood out for their sheer scale and speed.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), voiced concerns at a recent meeting of the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB). The group, which includes representatives from the FTI, the Thai Chamber of Commerce, and the Thai Bankers’ Association, flagged the gold export surge as a potential factor behind the baht’s rapid strengthening. "If you compare, Cambodia is a small country, but why does Thailand have such a large share of gold exports going there? This brings in a lot of foreign currency, which has to be exchanged for baht, increasing demand for the currency and causing it to appreciate," Kriengkrai explained, as reported by THE STANDARD.
The ramifications of a stronger baht extend far beyond the gold trade. For Thai exporters, especially those in the food and manufacturing sectors, a robust currency can be a double-edged sword. While it signals investor confidence and economic stability, it also makes Thai goods more expensive on the global market, eroding their competitive edge. The Thai Food Processors Association, led by Ongart Kittikunachai, has been vocal about the mounting challenges. "The current currency situation is something everyone must closely monitor. The business sector needs to adapt and use appropriate financial strategies to maintain partner confidence and turn challenges into opportunities," Ongart told Prachachat.
In response to these pressures, the Food Processors Association has put forward a four-pronged policy proposal aimed at cushioning exporters from currency volatility. First, they urge the Bank of Thailand to adopt monetary and exchange rate policies that keep the baht in line with economic fundamentals, supporting exports while maintaining overall stability. Second, they call for measures to control excessive short-term capital inflows, which can fuel speculative swings and destabilize financial markets. Third, the association advocates for risk management tools such as forward contracts, as well as the creation of a support fund and access to low-interest loans to help exporters weather currency fluctuations. Lastly, they emphasize the need for deeper regional cooperation within the ASEAN+3 framework to bolster exchange rate stability and insulate the region from global market turbulence.
Yet, the gold export story is not just about economics—it’s also raising eyebrows over possible links to the shadow economy. The JSCCIB has openly questioned whether the unusual spike in gold shipments to Cambodia could be tied to underground or even illicit activities. Cambodia, after all, has a well-documented problem with scam operations and loosely regulated financial flows. The committee has called on the government, the Ministry of Commerce, the Ministry of Finance, and the Bank of Thailand to launch a thorough investigation. "We have not confirmed 100% that it is related, but it could be one of the unexpected factors, as it is an off-the-books economy. Gold exports to Cambodia may be both legal and illegal; we need to look at the details again," Kriengkrai cautioned, according to THE STANDARD.
For context, Thailand’s broader economic picture has been less than rosy. The central bank’s Monetary Policy Committee (MPC) recently cut interest rates by 0.25%, a move that would typically weaken the baht and boost exports. Instead, the currency has defied expectations, strengthening even as the domestic economy struggles. This anomaly has left many observers questioning whether the gold trade is masking deeper, more systemic issues.
Exporters of all stripes are feeling the pinch. The food industry, in particular, has warned that the strong baht is undermining its ability to compete with regional rivals whose currencies remain weaker. Thai products, long prized for their quality and global reputation, are suddenly being priced out of key markets. As Ongart of the Food Processors Association put it, "The strength of the baht has significantly reduced our competitiveness." The group’s recommendations reflect a sense of urgency: exporters need both immediate relief and long-term solutions to survive in an increasingly volatile global economy.
Meanwhile, the government faces a delicate balancing act. On one hand, it must ensure that the baht does not become so strong that it cripples exporters and stifles growth. On the other, it cannot ignore the potential risks posed by unexplained financial flows and the specter of money laundering. The call for greater transparency in the gold trade is not just about economic prudence—it’s about safeguarding the integrity of Thailand’s financial system.
As the investigation continues, all eyes are on the Bank of Thailand and relevant ministries to provide clarity and restore confidence. The JSCCIB has urged authorities to separate out gold trade values from broader export statistics to better identify any irregularities. "What we want the government and the Bank of Thailand to do urgently is to separate the value of gold trade first, to consider what abnormalities there are, and for the Bank of Thailand to look after the baht’s movements appropriately," Kriengkrai stressed. He added that excessive currency swings, whether up or down, disproportionately hurt Thai businesses across the export, agriculture, and tourism sectors.
In the end, the interplay between gold exports, currency strength, and economic policy has thrust Thailand into a period of uncertainty—and opportunity. For some, the gold boom represents a windfall; for others, it’s a warning sign that all is not as it seems. As officials dig deeper into the numbers and exporters brace for more turbulence, one thing is clear: the story of Thailand’s gold exports to Cambodia is far from over.
