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Cambodia: Use riel more to promote national currency, says NBC Deputy Governor
In a bid to promote the currency of Cambodia, the entrepreneurs and people, especially workers, can use riel more widely, said Dr Chea Serey, Deputy Governor and Technical Director General of the National Bank of Cambodia.
Dr Serey pointed out the significance of using riel during a meeting with a delegation from the Cambodian Young Entrepreneurs Association.
Experts observed that when people use the national currency more for transactions, it can help accumulate international reserves as well. In countries, where the national currency is commonly used, one has to convert the foreign currency into national currency for various economic activities.
The central bank has a role to play in absorbing these currencies through the conversion of the national currency. If only the riel was used in Cambodia’s economic activity, it could significantly increase its international reserves by accumulating a surplus of foreign currency inflows into the Cambodian economy every year.
According to the NBC, the accumulation of international reserves increases national wealth, enhances monetary confidence and strengthens a solid foundation for macroeconomic stability. Appropriately high international reserves will also allow the central bank to be more likely to intervene in the foreign exchange market to reduce drastic fluctuations in the value of international currencies in order to achieve achievements that support economic growth.
In addition, the growth of international reserves will increase investments in accordance with the priority principles.
The profits will be distributed between the central bank and the government, which can be used to invest in developing the country. Despite a reasonable amount on the size of the economy, international reserves in Cambodia could be further accumulated as the riel becomes more widely used in the country.
Source: https://www.khmertimeskh.com/501038340/use-riel-more-to-promote-national-currency-says-nbc-deputy-governor/