Phnom Penh (FN), April 29 – China’s Yuan is only for transactions in banking and financial institutions, and that it does circulate in daily transactions between individuals nor in Cambodian market, Chea Serey, Director General of National Bank of Cambodia, told Fresh News on Monday as clarifications to misunderstanding.
“The use of China’s Yuan in Cambodian banking system is for reciprocal payments between Cambodia and China trade, not for general circulation like the US dollar,” Serey stated.
“We allow China’s Yuan in electronic payment systems such as Union Pay, WeChat Pay, and Alipay in the kingdom’s hotels, restaurants and travel agencies,” she added.
NBC’s goal is to promote the use of Khmer Riel, not to circulate Chinese Yuan and other currencies. The launching of Chinese Yuan in banking system in late October is to facilitate trade payment, she underlined.
Economic analyst Chan Sophal stated that Chinese Yuan in banking system will make it easy for Chinese tourists, businesses, and investors.
Sophal is optimistic that the new initiative will bring in the kingdom more Chinese tourists and investors that will boost her trade and economic growth.
According to the Ministry of Commerce, trade between Cambodia and China in 2017 reached $4.8 billion, with exports from Cambodia valued at $830 million and imports $3.9 billion. As of April 2018, China has become the largest investment in Cambodia with total investment worth of US $17 billion.