Thomson Financial News
05.07.08
PHNOM PENH (Thomson Financial) - Cambodia has doubled reserve requirements for private banks from 8.0 percent to 16.0 percent in a bid to curb money supply to stem rising inflation, officials said Wednesday.
The requirements will take effect from July this year, said Phan Ho, director of banking supervision at the National Bank of Cambodia.
'The measure is important to reduce so much cash circulation,' he told Agence France-Presse.
'Now our GDP (gross domestic product) has increased too high, too fast. We want it to slow down because when the growth jumps too high, it is not good,' Phan Ho added.
The new reserve requirement will only affect foreign currency deposits, he said.
Cambodia's economy has averaged 11.0 percent growth over the past three years, but inflation has also soared. It cracked into double digits late last year, hovering around 11.0 percent, driving up the cost of food and other staple goods.
AFP
05.07.08
PHNOM PENH (Thomson Financial) - Cambodia has doubled reserve requirements for private banks from 8.0 percent to 16.0 percent in a bid to curb money supply to stem rising inflation, officials said Wednesday.
The requirements will take effect from July this year, said Phan Ho, director of banking supervision at the National Bank of Cambodia.
'The measure is important to reduce so much cash circulation,' he told Agence France-Presse.
'Now our GDP (gross domestic product) has increased too high, too fast. We want it to slow down because when the growth jumps too high, it is not good,' Phan Ho added.
The new reserve requirement will only affect foreign currency deposits, he said.
Cambodia's economy has averaged 11.0 percent growth over the past three years, but inflation has also soared. It cracked into double digits late last year, hovering around 11.0 percent, driving up the cost of food and other staple goods.
AFP
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