ANZ chief says Cambodia should de-dollarise

21 February 2013
The Phnom Penh Post
Economy and commerce
a stand-alone currency / ANZ / Business Research Institute for Cambodia / Cambodia Outlook Conference / chief executive / Chinese companies / Chinese government / Chinese renminbi / Currency / De-dollarisation / dollarised period / dominant currency / exchange-rate fluctuation / global trade flows / Hiroshi Suzuki / incentives / investment flows / Khmer riel / liquidity / macro-economic management / major currencies / Mike Smith / pegged / RMB / stable exchange rate / Trade / US Dollar

ANZ chief executive Mike Smith says Cambodia should decouple the riel from the US dollar to a stand-alone currency and align itself to the Chinese renminbi (RMB), given the shift in global trade flows. At the Cambodia Outlook Conference in Phnom Penh yesterday, Smith said: “I believe you have to think very seriously about linking your currency to somebody else’s currency, because you don’t control the printing press and that will always give you trouble in times of either tight or excessive liquidity, as we have now. … But Business Research Institute for Cambodia chief executive Hiroshi Suzuki said although Chinese companies had already begun exporting in RMB with incentives from the Chinese government, he expected the US dollar to remain the dominant currency in the short term. …

http://www.phnompenhpost.com/2013022161527/Business/anz-chief-says-cambodia-should-de-dollarise.html