Picture: PM Hun Sen and wife Bun Rany.PENH (AFP)--Cambodia's foreign currency reserves have topped the $1.6 billion mark due to robust economic growth over the last decade, Prime Minister Hun Sen said Wednesday.
Hun Sen said the country's international reserves increased by nearly $700 million this year.
"As of yesterday, our international reserves had reached $1.69 billion," the premier announced during a graduation ceremony.
He noted that the country had started without any reserves in 1979 when the Khmer Rouge was driven from power.
"By the middle of next year, our international reserves will reach $2 billion, " Hun Sen said.
While still one of the world's poorest countries, Cambodia has emerged from decades of conflict as one of Asia's rising economies.
It has posted annual economic growth averaging 11% over the past three years on the back of strong garment and tourism sectors.
The country's economy is expected to grow by 9.0% in 2007, according to the International Monetary Fund.
Nonetheless, the kingdom still needs at least $500 million from foreign aid annually for development.
Cambodia remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using the banks.
Nearly one-third of Cambodia's 14 million people survive on only $0.50 a day or less.
While acknowledging Cambodia's economic growth, the World Bank in June warned that the country continues to face a wide wealth gap that leaves rural villagers poor.
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