By Khmerization
Source: DAP News
The Securities and Exchange Commission of Cambodia has released a statement on Thursday 10th March saying that the riel, the Cambodian national currency, will be used as a currency of the upcoming Cambodian Stock Exchange. The statement said the decision to use the riel, and not the U.S dollar, was made after careful consultation and consideration.
-----------------------------------------------------Source: DAP News
The Securities and Exchange Commission of Cambodia has released a statement on Thursday 10th March saying that the riel, the Cambodian national currency, will be used as a currency of the upcoming Cambodian Stock Exchange. The statement said the decision to use the riel, and not the U.S dollar, was made after careful consultation and consideration.
Currency decision awaited
Friday, 11 March 2011
May Kunmakara and Soeun Say
Phnom Penh Post
THE long awaited decision on what currency Cambodia’s securities exchange will use for listings will be announced next week, according to officials from the Securities and Exchange Commission of Cambodia.
Following a closed-door meeting on the issue late yesterday, SECC deputy director general Huot Pum said the decision to allow listings in dollars, riel, or both currencies simultaneously was a “sensitive issue” that would be publicly announced next week, and declined to comment further.
National Bank of Cambodia Spokeswoman and Director General Nguon Sokha has said the central bank supports increased use of the riel in Cambodia.
“Our policy is to promote use of the riel, to strengthen the use of our local currency,” she said earlier this week.
“If we use the US dollar on the exchange, we could have difficultly managing a crisis, as we lose our monetary authority,” she said, adding any change to the riel should occur gradually.
Ministry of Economy and Finance Secretary of State Hang Chuon Naron said last week that the Cambodian Securities Exchange should reflect the reality of the Cambodian economy – which is highly dollarised.
“We have to make sure the objective is to have macro [economic] stability and economic development,” he said.
Experts such as the Asian Development Bank’s Jayant Menon have suggested allowing listings in both currencies. Cambodia Securities Exchange CEO Hong Sok Hour said it would be simpler for the exchange’s trading platform to handle one currency.
“If we use one currency for trading, it will be easier for us – however, we should consider the influence of a currency on the whole economy,” he said earlier this week.
SECC Director General Ming Bankosal could not be reached for comment by The Post yesterday.
ACLEDA Securities director Svay Hay said he would support a decision to use either the riel or the dollar.
9 comments:
Cambodian should be proud to have their riel in the stock market
Good move!National pride
Foods price is outrage, and ridiculous in cambodia today? I hope government start do something about people keep jacking up the prices.....??
They should have a rule or regulations properly in cambodia, people can do whatever they wanted...You can't just raise up the price to whatever you felt like..??
No body care man! People can do whatever they want...Lawless country! What you expect?
Govt. should do everything to strengthen and help lift the value of the riel to encourage people to use it in their everyday life. We should be proud of our national currency. Dollar can still be used, but time by time it should be faced out and the riel becomes the only currency in Cambodia.
It's good as a country but it's discourage in term of pro-growth business. It will create confusions in business transactions and can turn off some foreign investors, especially from the US. Who cares Riel or Dollars? Most of investors want to invest anywhere they feel comfortable and make profits.
Cambodia would be better off by using Dollars.
1:42 PM, I don't think using local currency will discourage growth. Look at Thailand, Vietnam, Malaysia, Taiwan, Singapore etc, they don't use dollar but their economies are very strong. In fact, in Vietnam, investors are better off using the Viet Dong because of the low exchange rate- meaning investors spend less dollar but get more Dong in exchange rate. The problem with Cambodia's economy is not the use of the riel, but the government's policy or the enforcement or implementation of the laws, less corruption I mean. If government can reduce corruption and make thing more easier and transparent for honest, not dishonest, investors, they they will come in drove. The thing that make honest investors like U.S or Japanese investors from coming to Cambodia are the lawlessness and corruption in the country. At present, we only see dishonest investors like Chinese, Taiwanese etc coming to Cambodia.
Of course, exchange rate is a factor of business decision and at the same time exhange rate is uncontrollable and unpredictable. Agian, I want to see Cambodia moving forward fast and it is an opportunity for Cambodia to take Dollar in business transactions to bring in foreign investors as much as possible. Currency policy can change later on as far as Cambodia become more competitive to its neighbor countries.
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