(Bloomberg) — An unusual surge in Thai gold exports to neighboring Cambodia has triggered calls for an investigation. The shipments are seen as one factor fueling a rally in the baht, which threatens to undermine the nation’s exports and tourism.
In the first seven months of 2025, Thai gold shipments to Cambodia jumped 19% from a year earlier to 71.3 billion baht ($2.25 billion) — a pace that may surpass last year’s record 106 billion baht. The flows put Cambodia on track to rival Switzerland, the world’s gold refining hub, and Singapore, a regional trading center, for shipments of Thai gold, according to Customs Department data.
It underscores Cambodia’s emergence as an out-sized destination for Thai gold, raising questions over the drivers of the trade and its implications for the baht’s fast appreciation this year. The Bank of Thailand has vowed to take steps to ease baht volatility and limit the influence of gold prices.
The Federation of Thai Industries has found that gold and jewelry exports to Cambodia have surged since last year in amounts inconsistent with the country’s size and demand, Chairman Kriengkrai Thiennukul said in an interview Friday.
“It looks suspicious,” Kriengkrai said, adding that the BOT, customs authorities and the Commerce Ministry should investigate the transactions. “It may come from gray businesses like scammers and casinos. It’s possible that they use gold as a tool for money laundering.”
Read: Thai Gold Demand Seen Soaring as Strong Currency Adds to Allure
Another possible factor weighing on the baht is remittance outflows from Thailand’s roughly 4 million registered migrant workers, with the actual number likely much higher when undocumented laborers are included, he said. These transfers — both legal and informal — to neighboring countries like Myanmar and Cambodia may be draining domestic baht liquidity and adding pressure on the currency.
The Joint Standing Committee on Commerce, Industry and Banking, which includes the FTI, plans to meet with BOT Governor Sethaput Suthiwartnarueput next week to raise its concerns, including the impact of a strong baht on exports and tourism, and measures to support small- and medium-sized enterprises. The group will also flag its suspicions over rising gold imports to Cambodia and the effect of migrant worker remittances.
“We are OK if the baht strengthens in line with other countries from dollar weakness,” Kriengkrai said. “It’s not acceptable for the baht to move more than others like this. This puts us at a disadvantage at the most critical time for our economy. It should be a priority of the policymakers.”
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