Logo of Phnom Penh Post newspaper Phnom Penh Post - NBC, South Korea team up for research

NBC, South Korea team up for research

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

NBC, South Korea team up for research

The central banks of Cambodia and South Korea signed an agreement on Friday to jointly conduct research and analyse the relationship between exchange rates and inflation in the Cambodian economy, according to bank officials.

Under the memorandum of understanding, the National Bank of Cambodia (NBC) and the Bank of Korea (BoK) will seek to produce findings on how to better formulate effective monetary policy for Cambodia’s economic development.

Speaking to reporters after the signing ceremony, Chea Serey, director-general of the NBC, said the two parties will commence research immediately and expect to issue a report on their findings by December.

“Cambodia is a highly dollarised economy and so far the [fluctuation of] the inflation rate is influenced significantly by the exchange rate,” she said. “The research will look in detail at how strong the relationship is between the exchange rate and inflation so that we can better address monetary policy in order to maintain price stability.”

The joint research initiative is supported by the Bank of Korea Knowledge Partnership Program (BoK-KPP), while South Korea’s Global Management Research Institute (GMRI) has agreed to assist with technical analysis.

Soon-Won Chung, senior adviser for BoK-KPP, said the initiative will provide NBC staff the opportunity to collaborate with BoK and GMRI researchers, and together conduct empirical analysis on the Cambodian economy.

He added that the joint project would contribute to enhancing the capacity of NBC staff and provide a macroeconomic model of the Kingdom’s economy for better analysis.

“This is a very important opportunity to share the knowledge and experiences of Korea’s economic development for Cambodia’s economy,” he said.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The