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NBC to continue to use tools to strengthen confidence in the riel

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Traffic passes in front of the National Bank of Cambodia headquarters in Phnom Penh. Heng Chivoan

NBC to continue to use tools to strengthen confidence in the riel

The National Bank of Cambodia (NBC) announced on Friday that it will continue to strengthen confidence in the local currency by stabilising the currency exchange rate and enforcing its existing financial tools to boost the riel’s usage.

NBC’s Monetary Policy Committee conducted a meeting last Friday and according to its press release issued the same day, it will continue stabilising the currency exchange rate based on actual economic change.

It will also stabilise the interest rate of liquidity-providing collateralised operations (LPCO) and make 800 billion Cambodian riel ($200 million) a month available for banks and financial institutions to obtain funds through the LPCO.

The committee also committed to continue boosting awareness of riel usage and follow through on enforcement requiring banks and micro-financial institutions to have at least 10 per cent of their total outstanding loans in the local currency.

NBC’s release during the first quarter of this year said macro-economic indicators have proven good progress.

“The inflation rate is low with an average of 1.9 per cent, the exchange rate remains steady at 4,017 riel per USD, and gross foreign reserves continue to increase and are able to ensure the import of goods and services for the next five months,” the release said.

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