The National Bank of Cambodia and the People's Bank of China signed two cooperation agreements to cooperate on cross-border payments and financial crisis response between the two countries.
On the 21st, Chea Serey, Governor of the National Bank of Cambodia, met with her counterpart Pan Gongsheng in Beijing, China. The two sides exchanged views on financial cooperation between the two countries and other issues. The two representatives also signed two memorandums of cooperation, namely the "Memorandum of Cooperation on Establishing RMB Clearing Arrangements in Cambodia" and the "Memorandum of Cooperation on Financial Innovation and Payment Systems between the People's Bank of China and the National Bank of Cambodia."
The National Bank of Cambodia stated that the memorandum of cooperation aims to promote innovation in the banking and payment fields, improve the security and efficiency of cross-border payment transactions between Cambodia and China, and build the capacity of the Cambodian banking industry to cope with the financial crisis. The two central banks also hope to promote the growth of trade, investment and bilateral capital flows between Cambodia and China through this cooperation.
Currently, the National Bank of Cambodia has applied to join the Chinese RMB Cross-border Interbank Payment System (CIPS) and allows Chinese tourists to use Chinese electronic payment services within the country.
The National Bank of Cambodia stated that applying to join CIPS will bring many benefits to Cambodia, including reducing settlement costs in Cambodian Riel and RMB, strengthening bilateral trade, investment and tourism cooperation between Cambodia and China, and promoting regional economic integration. In addition, joining CIPS will also help the National Bank manage foreign exchange reserves so that it can better coordinate RMB settlement transactions.