Logo of Phnom Penh Post newspaper Phnom Penh Post - Stock exchange currency ‘soon’ to be decided

Stock exchange currency ‘soon’ to be decided

Stock exchange currency ‘soon’ to be decided

THE government said yesterday it was close to making a decision on which currency will be used for trading on the Cambodia Stock Exchange (CSX), but experts remain divided on which would be the best option.

Ming Bankosal, Director General of Securities and Exchange Commission of Cambodia, said the exchange would make the final decision following some further public consultation next month.

“We are still studying it because we want to understand the impact it will have on the economy if we use just our currency or just the foreign currency [US dollars] or both of them,” he said.

In Channy, president and CEO of Acleda bank which is also a licensed broker for the exchange, said he welcomed whatever decision the government made but preferred using the local currency.

“We are operators; we always comply with the government’s decision. However, for us we prefer using riel over a foreign currency,” he said.

“If we use our currency, we can have our monetary authority act whenever it fluctuates – we have enough power to stabilise it. But, if we use a foreign currency, we don’t have monetary authority. We just rely on [the foreign] monetary policy.”  

Lee Hyung Joon, Deputy Manager of the South Korean exchange’s trading board KOSDAQ, told the Post in Seoul last week the exchange’s view was “one stock, one price”.

“It can be possible to use US dollars in the stock market once US dollars are denominated in your economy – I think it does not pose any problem,” he said. “But if you accept two prices [using two currencies], the prices can fluctuate or change more. It is very hard to control.”

MOST VIEWED

  • Hun Sen’s China visit ‘a good opportunity’

    Prime Minister Hun Sen’s visit to Beijing on Sunday to discuss economic and trade issues presents a good opportunity for the Kingdom to strengthen Chinese ties and counter punitive measures by the West, an analyst says. The prime minister’s four-day official visit to

  • Former chief bodyguard receives royal pardon

    The former chief bodyguard of late Senate president Chea Sim has received a royal pardon nearly eight years after he was sentenced to 15 years behind bars on several charges, according to a royal decree dated November 12, last year, and obtained by The Post on Wednesday.

  • Close to the edge: Hair raising pictures from Kulen Mountain

    A new hair raising attraction on Kulen Mountain has finally opened to the public, with people flocking to the protruding cliff edge overlooking green mountainous forests to take photographs. The giant overhanging rock is situated in an area known as Mahendraparvata – an ancient city of

  • US warned not to interfere despite successful meeting

    A senior Ministry of National Defence official said the Tuesday meeting between the US Deputy Assistant Secretary of Defence for South and Southeast Asia Joseph H Felter and General Neang Phat had helped strengthen relations between the two countries’ militaries. However, a senior Cambodian People’