Logo of Phnom Penh Post newspaper Phnom Penh Post - China currency deals surge

China currency deals surge

An employee counts banknotes and coins at a bus company in Haikou, China, in April.
An employee counts banknotes and coins at a bus company in Haikou, China, in April. REUTERS

China currency deals surge

AS trade activity between Cambodia and China intensifies, banks are seeing an increase in deals transacted in yuan.

Operating in Cambodia since 2010, Bank of China’s Phnom Penh branch has been trying to promote business transactions in yuan and has seen a significant increase in its use to pay for imports and exports over the past six months.

Chen Chang Jiang, chief executive officer at the branch, told the Post the amount of yuan received by the Bank of China reached almost $163 million from January to June this year, up 50 percent from the first half of last year.

“The growth is fast, and we are very happy,” Chen said. “It is the result of increasing exports and imports among businesses in Cambodia and China.”

Several other banks, such as Acleda, ANZ Royal, Cambodia Public Bank, Union Commercial Bank and Maruhan Japan Bank, also advertise yuan payment settlement services in Cambodia.

In Channy, president and CEO of Acleda Bank, said he has also seen more trade settlement in the currency, a lot of which he attributes to agricultural exports.

“There is a big jump of Cambodian rice flowing to China, and I believe that the trend of using Chinese yuan will be moving forward in Cambodia,” Channy said.

According to official data, of the 146,854 tonnes of rice Cambodia exported in the first five months of this year, 12,687 tonnes, or 8.6 per cent, went to China. Governments of both countries are aiming for trade volumes to reach $5 billion by 2017.

Recent figure from the Chinese embassy in Cambodia show trade between the two countries was valued at $1.79 billion in the first four months this year, a 42 per cent increase compared to the same period last year.

Nguon Sokha, director general of the National Bank of Cambodia, agrees that deals transacted in Chinese currency will increase, but she says the US dollar is still the dominant international currency.

“Currently, the yuan can only be used for international trade between Cambodia and China,” Sokha said. “The currency is still far behind the dollar, which represent at least 80 per cent of the Cambodian economy.”

MOST VIEWED

  • With herd immunity likely in 2022, is Cambodia ready to reopen for tourism?

    The government aims to inoculate 80 per cent of the target population by June next year, giving it a head start among regional peers to reboot the sector but first, it has to do a few things to up its game A sign on a glass

  • Quarantine still a must for all arrivals, in next Covid chapter

    Since early May, an average of five to 10 Cambodian people have died from Covid-19 a day with many others testing positive amid the ongoing community outbreak. At the same time, however, hundreds of patients also recovered a day. The first Covid-19 case in Cambodia was

  • US wants 'full access' to Ream Naval Base

    On June 11, the US embassy's Defense Attaché Colonel Marcus M Ferrara visited Ream Nava Base in coordination with Cambodian officials following the recent approval of Prime minister Hun Sen to allay the concerns on Chinese military presence at the base as raised by US Deputy

  • Jab drive heading to 5 provinces

    The government is set to vaccinate more than 1.2 million people in five provinces after finishing with Phnom Penh and neighbouring Kandal in an ongoing campaign administered by the ministries of Health and National Defence. The five provinces are Preah Sihanouk, Kampong Speu, Takeo, Kampong Cham

  • New immigration bill targets illegal foreigners in Kingdom

    General Department of Immigration (GDI) officials are discussing revisions to the new draft law on immigration to prevent foreigners from entering Cambodia illegally and to supervise those living in the Kingdom more effectively. The revisions draw wide support among civil society organisations. GDI director-general Kirth

  • Kingdom set to be a gold producer

    Cambodia will soon join the roster of gold producing countries after the government announced the commencement of commercial gold mining operations in the Okvau area in southwestern Mondulkiri province's Keo Seima district from June 21. Prime Minister Hun Sen on June 10 announced that after 14 years of