Cambodia continues selling US dollars to stabilise exchange rates

The National Bank of Cambodia (NBC) announced on September 19 that it will continue holding two auctions of US dollars (each worth 10 million USD) on September 20 and 22, to ensure exchange rate stability, maintain the purchasing power of the Cambodian riel, and support the economic recovery process following the COVID-19 pandemic.

In a notification sent to banks, microfinance institutions, and foreign exchange units, the NBC said it plans to hold two USD auctions every Wednesday and Friday and maintain this schedule for four weeks.

In early September, the NBC decided to inject 50 million USD into the market through auctions held on September 6 (10 million USD), September 8 (15 million USD), September 13 (10 million USD), and September 15 (15 million USD).

In its announcement made on September 18, the NBC said following the four above USD auctions, the exchange rate of the Cambodian riel against the US dollar has decreased to a level that aligns with the market conditions over the past two weeks.

According to the NBC, the primary reasons for the depreciation of the Cambodian riel are seasonal factors and the upward pressure on the US dollar in the international market. Seasonal factors are the reduced demand for the riel during the agricultural production season, as well as the low season for tourism activities in the country.

Source: Vietnam News Agency