NBC to continue to use tools to strengthen confidence in the riel

20 May 2019 2059 | Business & Trade Fairs

The National Bank of Cambodia (NBC) announced on Friday that it will continue to strengthen confidence in the local currency by stabilising the currency exchange rate and enforcing its existing financial tools to boost the riel’s usage.

NBC’s Monetary Policy Committee conducted a meeting last Friday and according to its press release issued the same day, it will continue stabilising the currency exchange rate based on actual economic change.

It will also stabilise the interest rate of liquidity-providing collateralised operations (LPCO) and make 800 billion Cambodian riel ($200 million) a month available for banks and financial institutions to obtain funds through the LPCO.

The committee also committed to continue boosting awareness of riel usage and follow through on enforcement requiring banks and micro-financial institutions to have at least 10 per cent of their total outstanding loans in the local currency.