Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - First hedging deal transacted

First hedging deal transacted

First hedging deal transacted

ANZ Royal Bank has transacted a landmark commodities hedging deal with a local oil importer, officials at the bank said yesterday.

The deal allows the company, whose name ANZ Royal would not disclose, citing confidentiality agreements, to lock in an agreed price for the future sale of the product.

Cambodia imports all of its oil, and companies, not to mention consumers, are susceptible to global price fluctuations.

Should prices fall from the amount defined by the contract, the importer, instead of making less money, is protected and the risk shifts to the bank.

A statement from ANZ Royal said the deal took place on July 31.

“Giving local companies access to these kinds of risk-management tools is a different manifestation of financial inclusion, enabling Cambodians to operate on the same financial playing field as global and regional competitors,” said ANZ Royal CEO Grant Knuckey.

Though the deal will allow the oil importer to protect its inventory against falling prices, many details of the contract – its length, the fixed price – remain a secret.

Chea Serey, the deputy director general of banking supervision at the National Bank of Cambodia, said in a joint statement with ANZ Royal that the contract is a positive step forward in the financial sector.

“Suppliers, users and the Cambodian economy will benefit from the introduction of innovative hedging products to Cambodia,” she said.

ANZ Royal is the only financial institution the NBC has approved to provide non-exchange-traded hedging contracts, often referred to as over-the-counter derivatives trading.

In 2011, the Securities and Exchange Commission of Cambodia cracked down on unlicensed firms trading derivatives. Contacted yesterday, the SECC declined to comment on the progression of derivatives regulations.


  • Professor beaten by mob in Phnom Penh after alleged hit-and-run

    Updated with new information: 6:44am, Tuesday March 13 2018 A university professor accused of a hit-and-run has been transported to Vietnam with serious head injuries after he was brutally beaten by a mob in Phnom Penh late Sunday afternoon. A video of the attack shows a group

  • American ‘fugitive’ arrested in Cambodia outside of US Embassy

    An American citizen was arrested on request by the US Embassy in Phnom Penh on Tuesday, according to Cambodian police. Major General Uk Hei Sela, chief of investigations at the Department of Immigration, identified the man as American Jan Sterling Hagen, and said he was

  • One Australian, one Cambodian killed in explosion at military base

    Updated: 5:20pm, Friday 16 March 2018 An Australian tourist and a Cambodian soldier were killed in an explosion on Thursday afternoon at an army base in Cambodia’s Kampong Speu province. The Australian, whom the government initially identified as a technical demining expert in his 40s, and

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of