The Mirror, Vol. 14, No. 672
“Phnom Penh: The stock market of Cambodia scheduled to be established at the end of this year might use both Dollar and Riel.
“A Secretary of State of the Ministry of Economy and Finance, Mr. Hang Chuonarong, said on 6 July 2010, after a press conference at the office of the Asian Development Bank in Cambodia, that this is a choice being discussed by stock market
experts, but so far, no official decision has been made. He added, ‘The government has nothing decided, but experts, highly skilled in stock exchange matters, are thoroughly discussing and studying its advantages and disadvantages.’
“According to the Principal Economist in the Office of Regional Economic Integration of the Asian Development Bank, Mr. Jayant Menon, the choice to use both currencies (Dollar and Riel) is a mechanism that Cambodia must take into consideration, because it is related to the currency polices, and the polices about interest rates, especially the stability of the Riel, the national currency of Cambodia.
“He went on to say that to invest by using the Dollar or the Riel is not a problem for the operation of the stock market in Cambodia, but it depends on where Cambodia wants investments to flow to. He added that the problem is whether Cambodia needs local or needs foreign investment. If Cambodia needs foreign investment, foreign investors might find it somewhat difficult to invest in the stock exchange of Cambodia.
“So far, the Dollar, the US currency, is used for 90% of the transaction value [the Riel is used for 10%] at the markets and for payments in Cambodia, while in Laos, it is used only for 50%, and in Vietnam for merely 20%.
“Regarding this issue, Mr. Narong recognizes this point, but he said that the use of the Dollar has both positive and negative qualities. He explained that the use of the Dollar is good, because its value does not change much, it is easy for settling payments in exports, and it attracts foreign investment for economic growth, but it can cause difficulties for the authorities to manage currency policies and some other problems.” Rasmei Kampuchea, Vol.18, #5244, 8.7.2010
This article was first published by The Mirror, Vol. 14, No. 672 - Thursday, 8.7.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror.
Norbert Klein is the Editor of The Mirror – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror
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