Chea Serey, Governor of the National Bank of Cambodia, emphasized the crucial connection between a country’s monetary policy and financial stability. Speaking at the 16th High-Level Seminar organized by the National Bank of Cambodia (NBC), South East Asian Central Banks (SEACEN) Research, and Bank for International Settlements (BIS) in Siem Reap province, Serey addressed senior policy-making officials to discuss key regional issues.
In her opening remarks, Serey acknowledged the risks and uncertainties facing the world due to the prolonged Russia-Ukraine war and escalating geopolitical tensions among superpowers. These factors not only impact economic recovery and global financial stability but also widen the development gap worldwide, potentially slowing down trade and investment growth. Consequently, central banks worldwide have raised interest rates to combat inflation, putting emerging and developing countries at risk of reduced capital flows and currency devaluation.
Serey emphasized the need for emerging and developing countries to not only manage inflationary pressures and exchange rates but also pay attention to the risks to financial stability. She advocated for the implementation of diversified economic policies tailored to each country’s specific economic situation. Additionally, regional and global cooperation can help mitigate the development gap and foster international trade and investment growth.
The seminar, titled “Monetary Policy Restrictions and the Impact on Financial Stability in Asia,” brought together representatives from international financial institutions, including the International Monetary Fund and the BIS Office for Asia and the Pacific, as well as guest speakers from major universities and delegations from ASEAN Member States.
Serey also provided an update on Cambodia’s economic growth following the Covid-19 crisis and highlighted the policies implemented by the Cambodian government and NBC to promote economic recovery. Despite global economic uncertainties, the banking industry in Cambodia has remained resilient, thanks to the implementation of prudent and flexible policies by the central bank. The central bank’s report showed a 13.8% increase in loans to $58.6 billion and a 6.4% increase in deposits to $44.4 billion as of June this year. These growth figures have contributed to the recovery of economic activity across various sectors.
