Foreign currency deposits see strong growth
Foreign currency deposits grew briskly during the first four months of the year, a sign that public confidence in Cambodia’s financial institutions is high despite the uncertainty after last year’s disputed national election, bankers said this week. Cheam Teang, executive vice president of Acleda Bank Plc., said the bank’s foreign currency deposits increased more than 85 percent year-on-year—from $120 million in the first four months of 2013 to $225 million during the same period this year. The main currencies being deposited are U.S. dollars and Thai baht. … At Malaysian-owned CIMB Cambodia Bank, foreign currency deposits grew from $153 million in the first four months of 2013 to $221 million in the first four months of this year, according to Heng Vuthy, the bank’s head of strategy and finance. … Bun Than, CFO of Sathapana Limited, a member of the Cambodia Microfinance Association and one of the seven microfinance institutions that accept deposits, said foreign currency deposits are flowing in at a faster pace. The MFI saw a 27.5 percent increase in the first four months from $80 million in 2013 to $102 million in 2014. Jayant Menon, lead economist at the Asia Development Bank’s regional economic integration office, said an increase in foreign currency deposits can be beneficial for the economy if properly monitored. “An increase in the money supply can spur demand and spending, which can boost growth, but can also lead to inflationary pressures if left unchecked,” he said. …
Kang Sothear
http://www.cambodiadaily.com/business/foreign-currency-deposits-see-strong-growth-59815/
