Cambodia-China RMB Trade Settlement Increased
AKP Phnom Penh, October 26, 2018 —
Cambodia-China trade settlement via RMB – short term for renminbi which is an official Chinese international currency – has significantly increased, thanks to rising Chinese tourists and investments in Cambodia.
The note was shared by Mr. Khou Vuthy, Deputy Director General of Central Banking of National Bank of Cambodia (NBC) during recent forum on ASEAN’s economy and internationalisation RMB here in Phnom Penh.
In 2017, Cambodia-China trade settlement was at 10 percent or US$600 million of the total bilateral trade of US$6.3 billion, he said.
“The two sides find the means of trade settlement convenient,” he underlined adding that RMB has also been used for Chinese tourists’ expenditures and some investment projects, government grants, and loans from China.
The National Bank of Cambodia supports the use of RMB, and by far about 15 banks are using the currency.
Mr. Chen Changjiang, CEO of the Bank of China (Hong Kong) Phnom Penh branch, also noticed significant progress of RMB in trade settlement, investment and reserved currency, and was committed to share further update of its performance with Cambodian stakeholders and beyond.
Government’s figures indicate that import from China last year was US$5.3 billion, while the export to the country from Cambodia was US$758 million.
China is considered as the top investor in Cambodia with total investment capital of US$6.1 billion, focusing mainly on hydropower, garment and footwear, agriculture, and banking.
By Chea Vannak