Cambodia's Microfinance Sector Ignites Record Growth For Local Currency In 2023

PHNOM PENH, (APP - UrduPoint / Pakistan Point News - 25th Mar, 2024) Cambodia's microfinance sector reported that 25 percent of its loans and 16 percent of deposits were denominated in local Currency riel in 2023, according to a Cambodia Microfinance Association (CMA)'s statement on Monday.

The total loan balance in riel escalated to an unprecedented 5.56 trillion riel (1.37 billion U.S. dollars) last year, while the volume of riel deposits at microfinance deposit-taking institutions swelled to 1.52 trillion riel (nearly 376 million U.S. dollars).

"These figures are indicative of a growing confidence in the national currency," the statement said.

CMA's chairperson Dith Nita said the remarkable growth in transactions through Cambodia's Bakong payment system, with a 3.4-fold increase in riel transactions, significantly outstripping those in U.S. Dollars, underscored a year of unparalleled success for the national currency.

"This leap forward symbolizes a concerted push towards cementing the Khmer riel's position as a preferred medium of exchange, bridging the gap between digital and traditional commerce," she said. "It's a clear indication of Cambodia's journey towards economic self-sufficiency and sustainability."