Central Bank explains its yuan promotion policy

A representative of the National Bank of Cambodia yesterday clarified the Central Bank’s policy toward the Chinese yuan, saying that its use is only being promoted in cross-border dealings.

The explanation was given yesterday by NBC director Chea Serey and follows reports in local media that the Central Bank was encouraging the use of the Chinese currency for everyday exchanges in Cambodia.

Ms Serey was speaking to reporters during a meeting convened to set the record straight on the matter.

“We are not asking Chinese people or investors to use the yuan in Cambodia. What we want is for them to use the yuan in the banking system and in cross-border transactions,” Ms Serey said.

“We are urging Chinese and Cambodian companies to trade in yuan and riel as to avoid risks associated with currency exchanges,” Ms Serey said. “Cambodian businesses importing goods from China should pay in yuan and Chinese businesses importing goods from Cambodia should use riel.”

Ms Serey said the policy will boost the use of the local currency, the riel, abroad. “The use of the Chinese yuan in trade settlements between the two countries will also increase the use of the Cambodian currency.”

She said similar arrangements are being pursued with Asean nations, particularly Thailand and Vietnam.

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