Greater use of the riel will lower interest rates

A legal framework that ensures a “sound, strong and efficient” financial sector has ensured the swift expansion of banking services throughout the country, but borrowing rates remain high and a large segment of the population – primarily those in rural areas – face difficulties accessing services.

Microfinance institutions (MFIs) are the main lenders in rural Cambodia, but their operation costs, including the cost of funds, are high. As a result, their lending rates are high, according to the Deputy Director General of Banking Supervision at the National Bank of Cambodia. …

Riel Gains