Bangkok: The Federation of Thai Industries (FTI) has raised concerns about Thailand’s unusually high gold exports to Cambodia, suggesting this may be a factor in the baht’s appreciation and raising concerns about possible involvement in underground trading.
According to Thai News Agency, regarding the rapid and severe appreciation of the baht, one of the highest in the region, with a value increase of over 7% since the beginning of 2015, Mr. Kriangkrai Thienukul, Chairman of the Federation of Thai Industries (FTI), revealed that the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) has investigated the causes of the unusually strong baht, which is contrary to the current economic situation. A preliminary investigation found some irregularities, particularly regarding unusually high gold exports to Cambodia, which may have contributed to the baht’s appreciation.
The export report to Cambodia found gems and jewelry as the top export category. The JSCCIB noted that despite Cambodia being a small country, it imports such a large amount of this product. However, a detailed examination revealed that the majority of these imports are gold. “We know that Cambodia has a significant scam problem. This has led the FTI to question why Thailand is exporting so much gold to Cambodia. This could be a reason for the baht’s appreciation, raising suspicions and concerns about the potential for underground trading. This is a matter that needs to be monitored and closely watched,” Mr. Kriangkrai stated.
However, this is an observation that is currently under investigation. The FTI has not yet confirmed it 100%, but this could be an unexpected factor, as it is an informal economy. Gold exports to Cambodia are estimated at tens of billions of baht, which is normally not this high. Looking at the reality, with the Thai economy not performing well and the Monetary Policy Committee (MPC) cutting interest rates by 0.25%, the baht should weaken, but it has strengthened. All of this is completely abnormal,” said Mr. Kriangkrai.