National Bank of Cambodia continues to sell dollars to ease exchange rate pressure


[INNEWS Comprehensive Report] On September 18, the National Bank of Cambodia issued an announcement revealing that in order to intervene in the exchange rate of Cambodian riel against the US dollar in the foreign exchange market, the National Bank of Cambodia is actively conducting US dollar auctions. The announcement pointed out that after four auctions in the past two weeks, the riel exchange rate against the US dollar has fallen to market levels. Taking into account the current situation of dollar fluctuations in the international market and Cambodia’s current and future macroeconomic situation, the National Bank of Cambodia will continue to control exchange rate pressure.

In this regard, the National Bank of Cambodia is ready to take necessary measures to intervene in the foreign exchange market to maintain the stability of the riel value and maintain the actual purchasing power of the Cambodian people.

It is understood that from September 6 to 15, 2023, the National Bank of Cambodia held 4 public auctions of US dollars, with a total value of up to 50 million US dollars. Due to the recent sharp appreciation of the U.S. dollar against other currencies, including the Cambodian riel, this increase has been affected by seasonal factors and appreciation pressure on the U.S. dollar in international markets.

In addition, the National Bank of Cambodia will add 8 auctions of US dollars in the next 4 weeks, maintaining the frequency of 2 auctions per week (Wednesday and Friday). However, the National Bank of Cambodia did not disclose the specific amounts of these eight auctions.

It is worth noting that according to the National Bank of Cambodia, the official exchange rate on September 5, 2023 was 4,158 riel to 1 US dollar, which was the price before the auction. The official exchange rate of the National Bank of Cambodia on September 19, 2023 has dropped to 4,124 riel per US dollar.