Logo of Phnom Penh Post newspaper Phnom Penh Post - NBC riel buys to reach $43m

NBC riel buys to reach $43m

NBC riel buys to reach $43m

THE National Bank of Cambodia has announced a further US$13 million purchase of riels to bolster the faltering domestic currency, which reached record lows this year.

The latest buy would bring the National Bank of Cambodia’s (NBC) total riel purchases to $43 million for the year to date, still below the $54 million bought in similar measures last year.

Thirteen separate lots of $1 million will be placed for bidding at the NBC’s Phnom Penh headquarters from today to August 30, according to Friday’s announcement signed by NBC Director General Tal Nay Im.

Cambodia’s currency stood at 4,273 riels per dollar yesterday, a decline from 4,190 recorded in mid-April, figures from the Ly Hour Exchange in Phnom Penh showed.

The riel had depreciated by 2 percent in the first half of this year, compared to 2009, according to an NBC report.

“Besides seasonal factors in the country, the depreciation of the riel could result from the universal appreciation of US currency, compounded by the impact of the global financial crisis that influenced the inflow of funds into Cambodia,” the NBC’s six-month report said.

However, some analysts said they were not concerned by the decline in Cambodia’s currency, as the riel’s value usually falls at this time of the year.

“Though there has been a 2 percent depreciation this year; the riel’s value is still good and stable. I have not heard customers buying US dollars complain it is high in value,” Ly Hour Exchange owner Sieng Lim said yesterday. “It normally fluctuates depending on trade activities and dollar appreciation.”

Cheam Teang, ACLEDA Bank’s executive vice president and chief of treasury and international cooperation officer, predicted its value would bottom out by August.

NBC Director General Tal Nay Im could not be reached for comment yesterday, but said last month that the riel gained value in September or October every year.

According to NBC figures, it held foreign reserves worth $2.9 billion as of June.

MOST VIEWED

  • Ethnic group ‘disappointed’ to be denied French visas to attend court

    Eleven people at the centre of a case involving seven indigenous Bunong villages in Mondulkiri province pursuing legal action in France have expressed disappointment after the French embassy in Phnom Penh denied their visa applications to attend court. A press release said the 11 included a

  • Cambodia nabs 12th place in best retirement destinations

    Cambodia is an expatriate hotspot for those dreaming of living a more luxurious lifestyle at an affordable cost, according to International Living’s Annual Global Retirement Index 2019. For the fourth year in a row, Cambodia took the top spot in the Cost of Living category.

  • EU starts EBA withdrawal

    The EU on Monday announced that it has begun the 18-month process of withdrawing the Kingdom’s access to its preferential Everything But Arms (EBA) agreement over “a deterioration of democracy [and] respect for human rights”. However, the Garment Manufacturers Association of Cambodia (GMAC) said

  • PM: War result of foreign meddling

    Prime Minister Hun Sen said on Sunday that Cambodia’s recent history of conflict was caused by foreign interference. “The wars that happened were caused by provocation, incitement, support, smearing and interference from foreign powers, and the group of ignorant people who pushed Cambodia to