The Mirror, Vol. 14, No. 672
“Phnom Penh: The stock market of Cambodia scheduled to be established at the end of this year might use both Dollar and Riel.
“A Secretary of State of the Ministry of Economy and Finance, Mr. Hang Chuonarong, said on 6 July 2010, after a press conference at the office of the Asian Development Bank in Cambodia, that this is a choice being discussed by stock market experts, but so far, no official decision has been made. He added, ‘The government has nothing decided, but experts, highly skilled in stock exchange matters, are thoroughly discussing and studying its advantages and disadvantages.’
“According to the Principal Economist in the Office of Regional Economic Integration of the Asian Development Bank, Mr. Jayant Menon, the choice to use both currencies (Dollar and Riel) is a mechanism that Cambodia must take into consideration, because it is related to the currency polices, and the polices about interest rates, especially the stability of the Riel, the national currency of Cambodia.
“He went on to say that to invest by using the Dollar or the Riel is not a problem for the operation of the stock market in Cambodia, but it depends on where Cambodia wants investments to flow to. He added that the problem is whether Cambodia needs local or needs foreign investment. If Cambodia needs foreign investment, foreign investors might find it somewhat difficult to invest in the stock exchange of Cambodia.
“So far, the Dollar, the US currency, is used for 90% of the transaction value [the Riel is used for 10%] at the markets and for payments in Cambodia, while in Laos, it is used only for 50%, and in Vietnam for merely 20%.
“Regarding this issue, Mr. Narong recognizes this point, but he said that the use of the Dollar has both positive and negative qualities. He explained that the use of the Dollar is good, because its value does not change much, it is easy for settling payments in exports, and it attracts foreign investment for economic growth, but it can cause difficulties for the authorities to manage currency policies and some other problems.” Rasmei Kampuchea, Vol.18, #5244, 8.7.2010
Newspapers Appearing on the Newsstand:
Thursday, 8 July 2010
Kampuchea Thmey, Vol.9, #2295, 8.7.2010
- Cambodia, Laos, and Vietnam Will Cooperate to Solve Dollarization Problems [to deal with challenges that result from using different currencies in the economy, to allow the three countries to promote efficient currency policies and currency exchange policies]
- Samdech Hun Sen and His Wife Donated Two Male Elephants to the [South] Korean Government [for breeding]
Koh Santepheap, Vol.43, #7002, 8.7.2010
- Police Intercepted a Twelve-Seater Car Loaded with 110 Pieces of Ebony, and a Person Who Tried to Protect the Wood Claiming that He Is a Military Police Officer [finally police seized the car and arrest the driver - Takeo]
Moneaksekar Khmer, Vol.17, #3926, 8.7.2010
- Cambodia Loses US$20 Million to US$90 Million per Year because of Failures in Its Dollarization Policy [according to studies by the Supreme National Economic Council - (interesting: its web site has also a non-operational button Call for donation) - the International Monetary Fund, and the Asian Development Bank, the extensive use of dollars in Cambodia, on the one hand, helps attract foreign investment and trade and enables the banking and financial systems to improve quickly through the increase of deposited money, the prevention of market disturbances, and the inflation of the prices of goods - but, on the other hand, it weakens the possibility of the National Bank of Cambodia to create its own currency policies, including for the prevention of financial crisises in the banking system, the control of the inflation rate of currency exchanges, and the printing of currency notes]
- The Court Will Issue a Warrant to Detain [Sam Rainsy Party parliamentarian] Mu Sochua on 16 July 2010 if She Does Not Pay a Fine by the Deadline [for losing a defamation case against Prime Minister Hun Sen]
Phnom Penh Post [Khmer Edition], Vol.1, #2, 8.7.2010
- The World Bank: Cambodia Is Very Open for Foreign Investments [compared to other countries in Southeast Asia and in the Pacific, but It Takes Longer [to launch an operation in Cambodia, which takes 86 days on average, while in other countries, it takes only 42 days]
- The Phnom Penh Municipality Starts to Construct a Demonstration Compound [at a park near the Canadia Bank's High Rise Building]
Rasmei Kampuchea, Vol.18, #5244, 8.7.2010
- Economists: A Cambodia Stock Market Can Use Both the Dollar and the Riel
- Cambodia Denied that Thai Red-Shirt [anti-government] Leaders Take Shelter in Siem Reap [the Thai Prime Minister said that two red-shirt leaders are hiding in Cambodia]
- More Than 6,000 People Suffered Injuries and Death along the Road [within six months of 2010, there were 3,040 cases of traffic accidents in Cambodia which killed 991 people, seriously injured 2,853, and lightly injured 2,562]
Have a look at the last editorial – you can access it directly from the main page of the Mirror.
And please recommend The Mirror also to your colleagues and friends.