NBC committed to strengthen confidence in the riel

ASEAN+ May 22, 2019 01:00

By THE PHNOM PENH POST
ASIA NEWS NETWORK
PHNOM PENH

2,484 Viewed

THE NATIONAL Bank of Cambodia (NBC) said it will continue to strengthen confidence in the local currency by stabilising the currency exchange rate and enforcing its existing financial tools to boost the riel’s usage.



NBC’s Monetary Policy Committee conducted a meeting last Friday and according to its press release issued the same day, it will continue stabilising the currency exchange rate based on actual economic change.

It will also stabilise the interest rate of liquidity-providing collateralised operations (LPCO) and make 800 billion Cambodian riel ($200 million, Bt6.4 billion) a month available for banks and financial institutions to obtain funds through the LPCO.

The committee also committed to continue boosting awareness of riel usage and follow through on enforcement requiring banks and micro-financial institutions to have at least 10 per cent of their total outstanding loans in the local currency.

NBC’s report on the economy in first quarter of this year said macro-economic indicators had shown good progress.

“The inflation rate is low with an average of 1.9 per cent, the exchange rate remains steady at 4,017 riel per USD, and gross foreign reserves continue to increase and are able to ensure the import of goods and services for the next five months,” the release said.