NBC aims to strengthen con­fi­dence in the riel

The Phnom Penh Post - - BUSINESS -

THE Na­tional Bank of Cam­bo­dia (NBC) an­nounced on Tues­day that it will con­tinue to strengthen con­fi­dence in the riel by sta­bil­is­ing the cur­rency ex­change rate and boost­ing pub­lic aware­ness on the eco­nomic ben­e­fits of us­ing the lo­cal cur­rency. As Cam­bo­dia has a high dol­lar econ­omy, the NBC has lim­ited op­tions when it comes to its mone­tary pol­icy. So far, its main strat­egy has been to sta­bilise the cur­rency ex­change rate by us­ing riel to pur­chase the US dol­lar. Last year the NBC in­jected an equiv­a­lent of $915 mil­lion into the econ­omy to buy US dol­lars with the lo­cal cur­rency. An NBC re­port last year said the cen­tral bank pur­chased US dol­lars 125 times on an av­er­age ex­change rate of 4,050 riel to $1. Fifty­four per cent of the ad­di­tional riel in cir­cu­la­tion has been ab­sorbed by com­mer­cial banks, and the rest went to money chang­ers.

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