NBC calls for wider use of national currency

NBC calls for wider use of national currency

Greater local currency usage will contribute to more effective monetary policy transmission and reduce reliance on foreign currencies.

The National Bank of Cambodia (NBC) Monday organised a meeting to raise awareness of its monetary policy direction, as the central bank continues efforts to strengthen financial stability and promote wider use of the riel in the banking system.

The session, themed ‘Update on Monetary Policy Implementation in Cambodia 2025’ was chaired by Kimty Kormoly, Director General of the Central Banking Directorate of NBC, and attended by representatives of the Association of Banks in Cambodia (ABC), in Phnom Penh on December 15.

The meeting also brought together regulators and banking executives as Cambodia’s financial sector navigates challenges in liquidity management, digitalisation and currency diversification, with a total of 200 participants.

In his opening remarks, Kormoly highlighted the importance of the National Bank of Cambodia Platform (NBCP), a system designed to enable financial institutions to conduct electronic transactions with other NBCP members efficiently.

He encouraged banking and financial institutions to expand their use of the riel, noting that greater local currency usage would contribute to more effective monetary policy transmission and reduce reliance on foreign currencies.

According to an NBC announcement, the meeting featured discussions led by NBC officials, alongside presentations from representatives of ACLEDA Bank Plc, Wing Bank (Cambodia) Plc, and Chip Mong Commercial Bank Plc, who shared practical experiences related to liquidity management and operational challenges under current market conditions.

Representatives from banking and financial institutions also raised suggestions regarding the implementation of monetary policy, reflecting ongoing dialogue between regulators and the private sector aimed at improving policy effectiveness and market responsiveness.

It should be noted that currently, the NBCP supports a wide range of functions, including auctions, securities registration, trading of government bonds and foreign exchange between members, securities custody, trade settlements and transaction information services for investors.

Based on NBC, the platform plays a critical role in improving transaction speed, transparency, security, and efficiency, while reducing operational risks and supporting the development of Cambodia’s interbank market.

khmertimeskh