September 17, 2025
PHNOM PENH – Economists have explained that the rising trend of purchasing gold in Cambodia is being driven by global economic uncertainty at a time when domestic purchasing power is increasing. Their explanation counters Thai claims that the surge in buying gold may stem from a lack of confidence in the Cambodian riel.
Cambodian economist Lor Vichet told The Post on September 16 that the surge in gold buying is primarily due to geopolitical instability and global economic uncertainty, particularly the growing conflicts in the Middle East, a major oil-exporting region. These events are driving both individuals and investors to accumulate and stockpile the precious metal, he explained.
“In general, gold is a commodity that investors always buy during times of political and economic crisis — whether global or domestic. Specifically, geopolitical tensions, protectionist policies by major powers, the Russia-Ukraine war and especially the escalation of conflict in the Middle East have all pushed international gold prices to soar over the past few years,” he said.
He believed that the current rise in gold purchases within the Kingdom is not due to a loss of public confidence in the national currency. A genuine loss of trust in the riel would only occur if the exchange rate between the riel and international currencies like the US dollar declined significantly. In reality, the riel-dollar exchange rate has remained stable, around 4,000–4,100 riel per US dollar, for many years.
Vichet added that the increase in gold purchases by Cambodians is also due to improved living standards and purchasing power.
“Linking the rise in gold demand in Cambodia to a lack of confidence in the riel is not an economically sound argument,” he said.
“Investors will increase their gold holdings if they expect international gold prices to continue rising,” he noted.
Another reason for growing gold demand in Cambodia is investor optimism toward the tourism sector’s recovery, which is expected to drive higher sales of gold jewellery in the near future, Vichet added.
Thai news outlet The Nation reported on September 15 that Thailand’s Ministry of Economy 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.
Pornchai Thirraveja, director of the Fiscal Policy Office and spokesperson for the Ministry of Finance, told The Post today that authorities are examining recent reports that Thai gold exports have risen significantly, particularly to Cambodia. He added 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.
“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.”
Official data from the Ministry of Commerce shows a continuous rise in Thai gold exports to Cambodia over the past few years, according to The Nation.