In 2023, Cambodia will keep the riel stable, despite the global appreciation of the US dollar

Phnom Penh: In 2023, Cambodia will maintain the value of the riel against the US dollar to be more stable, with a rate of change of less than 2% compared to the exchange rate of the currency in some countries, such as the Japanese yen depreciated by 9%, the Chinese yuan depreciated 6.7% and the Lao Kip fell 29.8% as the US dollar strengthened under the influence of raising and keeping the benchmark interest rate high.

This was confirmed by Ms. Dr. Chea Serey, Governor of the National Bank of Cambodia on the occasion of the opening meeting to review the work results for 2023 and the work direction for 2024 of the National Bank of Cambodia on January 25, 2024.

Stabilization of the riel is the main factor leading to a reduction in inflation to 2.1% in 2023 from a high of 5.4% in 2022.

Dr. Chea Serey said that exchange rate stability has contributed significantly to strengthening investor confidence, partially controlling inflationary pressures, as well as maintaining macroeconomic stability. The exchange rate is considered by economists as an indicator of economic health, as former IMF managing director Per Jacobson once said: "Improving the value of the national currency is a priority in building economic development. Nation.

According to the Governor of the National Bank of Cambodia, the stabilization of the riel exchange rate against the US dollar has been largely due to prudent monetary policy through the proper management of the riel circulation and the intervention of the US dollar. On the exchange market as needed.

In addition, Dr. Chea Serey also said that this work can be achieved due to maintaining a sufficiently high level of international reserves, which reached about 20 billion US dollars, an increase of 12.3% compared to 2022 and more than seven months of imports of goods and services in the future, despite the uncertainty of international financial markets and the maintenance of high benchmark interest rates in developed countries have caused some central banks' international reserves Significantly decreased.

According to the National Bank of Cambodia, on January 25, 2024, the riel was worth 4,079 riel per US dollar.