HE second monthly bulletin of the National Bank of Cambodia covering February
1994 is upbeat about most economic indicators.
Inflation as measured by
the consumer price index showed a sharp downward trend, with price increases
standing at just 0.88 percent during the month. According to the report, that
small increase was largely due to a hike in the cost of electricity. But the
rate is significantly less than even that in January of 2.23 percent.
The rate of increase in money supply is also down to 7.5 percent from
January's 8.5 percent.
The riel remained fairly stable against the
dollar through February, with the official exchange rate appreciating marginally
by 0.4 per-cent to 2470 riel to the dollar. This was reflected in gold prices
which declined by about 4 percent to 112, 900 riel per chi of gold.
report is also optimistic about the position of foreign exchange reserves, which
have recorded an increase of 11.4 billion riel in February and now stand at
321.9 billion riel. But this 4 per cent increase is not as high as the 19 per
cent gain recorded the previous month.
Credit to the Royal government
increased by about 7.2 billion riel. But credit to the private sector has
reduced about 6.9 per cent from 181.94 billion riel in January to 169.4 billion.
The report says, "viewed in the context of the sharp 12.6 per cent
increase in January... the level of credit still remains significantly higher
than the December 1993 level."