Logo of Phnom Penh Post newspaper Phnom Penh Post - Official exchange rate launched for yuan, riel

Official exchange rate launched for yuan, riel

A woman counts Chinese yuan and Cambodian riel banknotes yesterday in Phnom Penh.
A woman counts Chinese yuan and Cambodian riel banknotes yesterday in Phnom Penh. Pha Lina

Official exchange rate launched for yuan, riel

The National Bank of Cambodia (NBC) and the People’s Bank of China in the autonomous Guangxi region of southern China have launched an official yuan-riel exchange rate that allows businesses and individuals to conduct trade settlement activities without using the US dollar as an intermediary currency, an NBC official said yesterday.

NBC Director-General Chea Serey said the yuan-riel exchange rate mechanism was officially launched earlier this month, allowing banks in Guangxi to quote and exchange the two national currencies directly.

“Before, this [could only] be done in Cambodia. Now it can be done in China too,” she said, adding that currently the valuation of the two currencies was done by benchmarking them against the US dollar.

“As the volume of trade settlement in local currencies increases, we will be able to determine a direct quotation without going through the US dollar,” she said.

While the system is so far limited to trade relations between Cambodia and Guangxi, she added that using local currencies for trade settlements reduces exchange risk, which could encourage more trade.

“This will reduce currency risk. The Chinese won’t have to exchange US dollar back to [yuan] and Cambodians won’t have to exchange US dollar into riel,” she said.

“Currency risk is one of the major risks for the import and export business. If this can be reduced then it would be good for businesses.”

Charles Vann, president of the Association of Banks in Cambodia, said that although a yuan-riel exchange rate has long been available in Cambodia, the launch of a direct exchange mechanism will encourage the use of riel for large business transactions.

“There are many business and investment deals with China so it is always good to provide an easier way to conduct business,” he said.

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration