Xinhua
The National Bank of Cambodia (NBC) has been putting another 3 million U.S. dollars to buy in riel currency in a bid to stabilize riel currency which is depreciated in recent weeks.
According to a Monday's announcement, seen Tuesday, from the NBC signed by the NBC's Director General Tal Nay Im, NBC has been putting each of 1 million U.S. dollars for bidding on Monday, Wednesday and Friday this week. Bidders can be commercial banks, licensed money changers and companies, it stated.
"On Monday's bidding for 1 million U.S. dollars, there were nine money changers joined. As a result, Vong Rithy Exchange shop near Phnom Penh's Olympic Market won the bidding at 4,232 riel a U.S. dollar," a central bank official who asked not to be named said Tuesday.
Riel currency is depreciated 1.67 percent to 4,260 riel a U.S. dollar on Tuesday from 4,190 riel a U.S. dollar in mid-April.
This is the second intervention from NBC to stabilize riel currency after the first dollar currency bidding of 4 million dollars in the last two weeks.
Analysts estimated that there is around 500 million U.S. dollars of riel currency has been in circulation in Cambodia and recent depreciation of riel currency is due to the appreciation of U.S. dollar and to the fewer inflows of U.S. dollar into Cambodia through trade and investment, as well as to the recent depreciation of EU currency.
According to a Monday's announcement, seen Tuesday, from the NBC signed by the NBC's Director General Tal Nay Im, NBC has been putting each of 1 million U.S. dollars for bidding on Monday, Wednesday and Friday this week. Bidders can be commercial banks, licensed money changers and companies, it stated.
"On Monday's bidding for 1 million U.S. dollars, there were nine money changers joined. As a result, Vong Rithy Exchange shop near Phnom Penh's Olympic Market won the bidding at 4,232 riel a U.S. dollar," a central bank official who asked not to be named said Tuesday.
Riel currency is depreciated 1.67 percent to 4,260 riel a U.S. dollar on Tuesday from 4,190 riel a U.S. dollar in mid-April.
This is the second intervention from NBC to stabilize riel currency after the first dollar currency bidding of 4 million dollars in the last two weeks.
Analysts estimated that there is around 500 million U.S. dollars of riel currency has been in circulation in Cambodia and recent depreciation of riel currency is due to the appreciation of U.S. dollar and to the fewer inflows of U.S. dollar into Cambodia through trade and investment, as well as to the recent depreciation of EU currency.
5 comments:
I don't understand how this bidding work. Can somebody enlights me?
khmeng khmer
IF the Cambodian natural resources can be this transparent and the bidding is publicly announce in advance, I think Cambodia will do just fine. WE CANNOT BUILD A STRONG NATION OR ANYTHING ELSE WITH SECRECY. IT IS JUST IMPOSSIBLE.
When the Reil notes are less in circulation (markets) then the value tend to go up because the demand is more and supply is less. Basic 101 financial class. This work only in a simple demand and supply manner but it has nothing to do with various factors such as overspend, overborrow, inflation, and poor performance of monetary policies, which disencourage investors and other domestic business alike.
However, when the domestic consumption due to high unemployment and striving economic are less productive then there is another story. 10 million dollars rescue package may be not having significant impact to stabilize Reil notes and even triple amount is not going to be so sure.
The value of a currency is depened on its power of purchase ?
3millions in the economy is like throwing salt into the river and expect the river turn salty. will it be, people? u bet not....from Sun Tzu
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