Home » Cambodia will sell the U.S. dollar six times in the month to boost the value of the Khmer currency

Cambodia will sell the U.S. dollar six times in the month to boost the value of the Khmer currency

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Original title: Cambodia will sell the U.S. dollar six times in the month to boost the value of the Khmer currency. Source: China News Network

In order to boost the value of the Cambodian currency, Cambodia has further increased its efforts to sell US dollars. On September 30, the sixth public auction of US dollars will be held this month.

According to news from the National Bank of Cambodia on the 29th, there will be another public auction of 20 million US dollars on the 30th of this month, and the lowest auction exchange rate will be announced in the morning of the same day. The National Bank of Cambodia appeals to all banks, financial institutions and money changers that have obtained business licenses to actively participate in the above auctions.

As we all know, Cambodia is a highly dollarized country. The domestic banking system has more than 80% of US dollar deposits and loans. The demand for Cambodian currency mainly comes from taxation and general market transactions. Due to the impact of the new crown pneumonia epidemic, government taxes have fallen and market trading activities have decreased. , The demand for Khmer currency fell, which in turn affected the value of Khmer currency.

In October last year, the Bank of Cambodia had four public auctions of US dollars, selling a total of US$80.2 million to the market. Two weeks after the first intervention in the market (October 21 last year), the value of the Khmer currency rose by 30 Khmer, that is, from 1 U.S. dollar to 4,095 Khb to 1 U.S. dollar to 4,065 Khb.

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Some analysts believe that as of the first half of this year, the total value of Cambodia’s foreign exchange reserves reached 20.8 billion U.S. dollars, which is enough to deal with import and export trade. Therefore, the Bank of Cambodia has the ability to sell more U.S. dollars.

The Monetary Policy Committee of the Bank of Cambodia decided in early September to intervene and ensure the stability of the Cambodian currency if necessary. Since then, the National Bank of Cambodia held five public auctions of US dollars on September 6, 8, 10, 20, and 23. The total auction scale was US$130 million, but the results were relatively modest. The National Bank of Cambodia stated that it will further increase its efforts to boost the value of the Cambodian currency by selling US dollars.


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