The National Bank of Cambodia (NBC) is preparing to take action on the latest increase on the Khmer riel exchange rate against the US dollar as the demand for the local currency slowed down in the agriculture and tourism sectors.
“In order to safeguard the value of the riel and the purchasing power of the Cambodian people, the NBC is prepared to take the necessary actions, such as intervening in the foreign currency market and using other monetary tools,” it said in a statement Tuesday.
The NBC continues to adopt a controlled floating exchange rate regime that allows the riel exchange rate to fluctuate appropriately.
According to the NBC, the riel exchange rate against the US dollar has increased notably in recent days, mainly due to seasonal factors and the pressure of the appreciation of the US dollar in international markets.
Demand for the riel decreased because of seasonal factors linked to the time of year when crops are being grown and tourism is low.
“The US dollar as a whole continued to appreciate against other world currencies after the US Federal Reserve continued to raise benchmark interest rates, attracting capital inflows to the US and boosting demand for the US dollar in international markets,” NBC said.
To get the latest news on Cambodia's business and tech, join Kiripost on Telegram.