The National Bank of Cambodia Plans to Boost Riel Liquidity

The National Bank of Cambodia (NBC) will launch a campaign next month to promote greater liquidity of the riel in the country’s financial system, it announced last week. According to the announcement, the NBC will promote liquidity management by a push to modernize how liquidity is monitored and predicted in the country.  
 

“The National Bank of Cambodia has decided to launch a new operation, called a Liquidity-Providing Collateralized Operation (LPCO), to provide liquidity in riel, in response to the need of banks and microfinance institutions who are concerned parties in the implementation of the country’s monetary policy,” the release said. “The National Bank of Cambodia plans to start the first LPCO on October 18. The National of Bank of Cambodia will carefully analyze the outcome and effect of each transaction and will correct other conditions if it is necessary to ensure the effectiveness of this new operation,” it added.
 

Director-General of the NBC, Chea Serey, told Khmer Times that the LPCO is part of the central bank’s strategy to modernize liquidity management and develop the riel money market. “We expect it to encourage the use of Khmer riel by the banks in their lending operations,” she said.

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