Three forex giants hold sway

[geovalin]

Hor Kimsay

 

A recent study on the role of Cambodia’s moneychangers found that three private forex traders control two-thirds of the total demand for riel currency and exert more influence on foreign currency exchange rates than the central bank, raising the possibility of collusion in fixing rates.

 

Leng Soklong, an economic researcher at the National Bank of Cambodia (NBC), said during a presentation late last month that the behaviour of just a few large moneychangers in Phnom Penh directly and indirectly influences the operating costs of various economic agents and is the main factor in determining forex rates in other parts of the country.

 

According to his study, Role of Money Changers in Dollarization: Evidence from Survey, 66 percent of moneychangers said they relied on Phnom Penh-based moneychangers to determine their daily foreign currency exchange rates, compared to just 6 percent who used the NBC’s exchange rates as their benchmark.

 

read more http://www.phnompenhpost.com/business/three-forex-giants-hold-sway

 

 

-- © Copyright Phenom Pen Post 01/10

[Ulic]

I don't really understand. Everyone I know uses USD in Cambodia. Riel is just for the pennies

between the dollars.