T he National Bank of Cambodia painted an encouraging picture with its
newly-released report on the economy covering January.
measured by the Consumer Price Index increased by 2.23 percent in January but
the overall trend was downward, with the December rate at 3.82.
report added: "A lower than 10 percent inflation is forecasted for the year in
The riel remained relatively stable compared to the dollar,
falling by four percent in January compared to its December level, from 2,470 to
"The exchange rate of the riel, which had witnessed volatile
movements earlier, came to be stabilized towards the close of the year at around
2,500 per dollar.
"Also the spread between the official and the market
exchange rates has narrowed considerably.
"These developments have
created the appropriate environment for sustained economic
Liquidity rose by 12 percent in the month, an identical
increase to that in December, as measured by Broad Money.
The report, the
first monthly bulletin from the NBC, said: "While time and savings deposits rose
by five percent, the rise in foreign currency deposits was as high as 33
percent. The level of foreign currency deposits reached a new high of 152.4
Foreign exchange assets of the banking system rose by 18
percent for commercial banks to 307.2 billion riel at the end of January.
December also saw a significant increase of 21.6 percent.
Government's credit with the banks declined from 187.6 billion riel in December
last year to 164.8 billion riel in January, largely due to government deposits
rising from nearly 31 billion riel to 50 billion riel, the report
It added: "The trend in credit to the government reflects the
government's determination not to have recourse to central bank resources for
financing the budget deficit."