Phnom penh, october 5 2021 after seven public selling of the u.s. dollar, the national bank of cambodia successfully significantly pushed up the value of the cambodian currency.
according to the national bank of cambodia announced on the 5th, in the latest (4th) public auction of u.s. dollars, the cambodian national bank of cambodia a one-time auction of 50 million u.s. dollars, the sale price of 4102 cambodian dollars to the dollar. compared with the first public auction of the dollar on september 6th, the results showed that the value of the cambodian riel had risen by 20 cambodian dollars.
cambodia’s national bank announced it would hold a public auction of $200m in october in the hope of boosting the weak cambodian currency. some media analysis said that the timing of the cambodian national bank’s massive sell-off of the u.s. dollar, just before the long holiday of the dead, which is conducive to attracting financial institutions and coin exchangers involved in bidding to buy cambodian currency at a “high price.” every major traditional festival, a large number of people working in phnom penh and major cities will flock back home to spend the holiday with their families, and need to exchange cambodian currency to return home for consumption, which increases demand for cambodian currency.
the national bank of cambodia said commercial and trade activity would also help push up the value of the cambodian currency as the outbreak of Coronavirus slows and business and trade activities become more active.
in october, the national bank of cambodia also sold $80.2m to the market in four public auctions. in the two weeks after the first intervention (october 21 last year), the value of the cambodian currency rose by 30 cambodian dollars, or 4,065 cambodian dollars to the dollar, from 4,095 cambodian dollars to the dollar.
since september 6 this year, the bank has held seven public auctions of dollars, selling a total of $200m. the first six sell-offs did not have the desired effect, with the sixth auction on september 28th selling for 4,123 cambodian dollars to the dollar, down 1 cambodian dollar from the first auction price of 4,122 cambodian dollars to the dollar.