Logo of Phnom Penh Post newspaper Phnom Penh Post - ‘Yuan helps cross border trade’, NBC clarifies

‘Yuan helps cross border trade’, NBC clarifies

Content image - Phnom Penh Post
The Chinese Yuan to be used for cross-border commerce in Cambodia. FRED DUFOUR/AFP

‘Yuan helps cross border trade’, NBC clarifies

The Cambodian central bank has provided additional details on the use of Chinese currency-backed settlements for cross-border commerce.

At a press conference on Tuesday, it said the additional details were to clarify a misunderstanding in media reports.

The clarification comes a week after the Bank of China (Cambodia) held a forum of Renminbi attended by senior officers from the National Bank of Cambodia (NBC).

Some media outlets [not The Post] had reported incorrectly that the term “settlements for cross-border commerce” meant that the yuan would be used in the Kingdom’s daily business transactions.

Speaking to reporters yesterday, NBC’s director general Chea Serey said its approval to use the yuan for cross-border commerce did not necessarily mean the NBC wants to push the yuan for settlements in retail business transactions.

She said it actually meant that Cambodian and Chinese businesses are allowed to conduct trade settlement activities by using the yuan or riel directly via banking services when there are cross-border trades.

“Cross-border traders can avoid using the US dollar and thus prevent exchange risks."

“What we want to promote is that Chinese traders can use yuan to convert to riel as settlement with Cambodian traders."

“Once Chinese investors exchange yuan for riel, the demand for riel will increase as well and this indirectly promotes the currency’s use,” she said.

Bilateral trade between Cambodia and China still relies very much on the greenback.

According to NBC figures, Cambodia imported Chinese goods valued at $5.2 billion last year. The yuan was used for only $130 million of this amount, the rest was paid in US dollar. Of Cambodia’s $753 million in exports to China, only $70million was paid in yuan.

MOST VIEWED

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • Stranded passengers petition UK for help

    Some 10,521 people have signed an online petition calling on British Prime Minister Boris Johnson and relevant officials to fly nearly 200 passengers out of Cambodia. The petition is targeted at 15,000 people. Most of the passengers are British nationals, who are stranded in Cambodia after airlines cancelled

  • Many in limbo as tension heightens

    As the Kingdom restricts travel and prepares for a state of emergency, some foreigners in Cambodia are scrambling for a way home. Foreign embassies in Phnom Penh are making efforts to get their citizens out, but cancelled flights have become common due to the coronavirus

  • Covid-19 Pandemic: Force majeure and legal consequences

    Is the Covid-19 pandemic considered an event of force majeure? The World Health Organisation declared the novel coronavirus (Covid-19) outbreak a pandemic on March 11. Following this declaration, the Ministry of Health and other ministries have taken various legal and administrative measures to prevent the rapid

  • No word on state of emergency

    The National Assembly (NA) said it will postpone all unnecessary meetings in line with guidance from the Ministry of Health and the World Health Organisation (WHO) amid the Covid-19 pandemic. However, it did not say when or how it will debate the “state of emergency”