Cambodia

Cambodia[KHR]

...

Institutional setup of monetary policy decisions and operations

Policy decision body, size and composition The Monetary Policy Committee (MPC)
Major mandates 1 Maintain price stability in order to facilitate economic development within the framework of the kingdom's economic and financial policy 2
Decision-making process The MPC decides on the policy options
Frequency / length of meetings The MPC meets four times a year on a quarterly basis
Frequency of announcements Same frequency as the meeting
Main policy target Inflation targeting: Inflation has been managed at low rate with an annual average of less than 5 percent.

Overview of key features

Key policy rate MLFs 3
maturity (days) 1 ; renew 5 times only
Operating target LPCO
maturity (days) 91day, 182days, 364days
Standing facilities MLFs
Corridor width (bp) N/A
Reserve requirements Yes
maintenance period 14 days
Main operation 4 NCD
functions Liquidity management
maturity (days) 7days, 14days, 28days, 91days, 182days, 364days
regular interval N/A
frequency Weekly (Subscription: Wednesdays; Settlement: Thursdays)
Overall frequency Weekly
Discretion left to operational desk NCD: Choice of Size
Key policy signals via
announcement Yes
keynote tender
standing facility
other

Monetary policy communication

Explicit use of forward guidance Yes
Timing / media of policy announcement Immediately after each Monetary Policy meeting; Central bank website, Facebook page
Policy announcement and documents Announcement of MPC meeting summary
Explaining policy decisions Monetary Policy Statement of MPC meeting summary
Dissemination of minutes (timing / media) N/A
Content of minutes N/A
Publication of forecasts 5 N/A
Publication of projected path of policy rate 6 N/A

Reserve requirements: ratios and size

Main functions served Monetary and Macro-prudential Tools
Domestic currency Yes
Foreign currency Yes
Average 7% 7
Required reserves KHR 1.1 trn & USD 2.8 bn (Total both in KHR: 12.6 trn) 8
Required reserve as % of GDP 0.11% 9
Actual reserves KHR 1.18 trn & USD 3.2 bn (Total both in KHR: 14.3 trn) 10
Actual reserve as % of GDP 0.13% 11

Main features of reserve requirements

Averaging Yes (Partial Averaging) 12
Carry-over No
Type Lagged
Maintenance period 14 Days
end (day) Day 14th (Following actual day count in the calendar) 13
Calculation period 14 Days
end (day) Day 14th (Following actual day count in the calendar) 14
Lag before maintenance 4 Days
Vault cash No
restrictions
Remuneration No
average rate
marginal rate
Framework last changed March 2020

Liquidity position and forecasting

Structural Position N/A
Most volatile factor(s)
Most unpredictable factor(s)
Forecast horizon(s)
Frequency
Frequency of revision
Forecast published?

Standing facilities: lending / market ceiling

Name Marginal Lending Facility (MLF) 15
Form Overnight
Pricing method on demand
Maturity Overnight 16
Access limited by/to Collateral; BFIs
Function(s) Liquidity management

Standing facilities: deposit / market floor

Name N/A
Form
Pricing method
Maturity
Access limited by/to
Function(s)

Open market operations: repo or reverse repo

Name/Type 17 LPCO
Maturity 91Days, 182Days, 364Days
Frequency twice a month
Pricing method single price dutch auction
Access limited by/to BFIs
Function(s) Liquidity management (injection)

Open market operations: central bank bills

Name NCD
Total issuance NCD in USD: USD 2.79bn, NCD in KHR: 717.64bn 18
Maturity 7days, 14days, 28days, 91days, 182days, 364days
Restrictions on possible maturities No
Pricing method N/A
Access limited by/to BFIs
Discretion left to operational desk Liquidity withdrawal (absorbtion)

Open market operations: FX swaps

Maturity N/A
Frequency
Pricing method
Access limited by/to
Function(s)

Other significant liquidity management means

Name/Type 19 N/A
Form
Frequency
Maturity
Pricing Method
Access limited by/to
Function(s)

Settlement systems and intra-day liquidity facilities

Settlement system NBCP
Intra-day liquidity facility C/A
Charge N/A
Foreign currency settlement system N/A
CLS participation by banks N/A
Other settlement system(s) N/A

Collateral

Standing facilities: List of eligible collateral Negotiable Certificate of Deposits (NCDs)
Standing facilities: Discretion of central bank on collateral 20
Open market operations: List of eligible collateral Negotiable Certificate of Deposits (NCDs)
Open market operations: Discretion of central bank on collateral 21

Dissemination of operational information: liquidity forecast

Forecast published?
Channel(s)
Timing
Remarks

Dissemination of operational information: open market operations

Volume and price published? Yes
Channel(s) NBC website, NBCP, NBC Facebook page
Timing 1. LPCO: Volume and price: announce shortly after auction; 2. NCD: Issued one day after subscription

Dissemination of operational information: standing facilities

Lending facility usage: Channel(s) NBC Plateform (NBCP)
Lending facility usage: Timing - morning session (8am to 9:30am FI receive fund at 10:15 am)
- Afternoon session (9:30am to 2pm , Fis receive fund at 2:45pm
Deposit facility usage: Channel(s)
Deposit facility usage: Timing

Other information dissemination

Type N/A
Channel(s)
Timing

1 Describe as well the legal status of the mandate and involvement of government

2 Law on the Organization and Conduct of the NBC; Article 3

3 This have just been introduced,​ and it has not been an effective instruments yet because of dollarisation and in the early stage of implementation.

4 RP = reversed purchase (repo, inject liquidity), RS=RRP=reversed sale (reverse repo, absorb liquidity), RT=reversed transaction (repo or reverse repo).

5 For instance, economic and inflation forecasts related to policy decision.

6 If applicable, describe the publication of any fan-charts or uncertainty bands around the forecasts/projections.

7 Minimum Reserve Requirement Ratio, 7% of reserve base

8 As of 29 July-2022

9 GDP for July 2022 : KHR 110.664 Trn

10 As of 29 July-2022

11 GDP for July 2022 : KHR 110.664 Trn

12 Daily monitoring

13 The exact day varies from time to time and is based on regulation

14 The exact day varies from time to time and is based on regulation

15 MLF

16 5 times rollover

17 RP=Reversed purchase (“repo”), RS=RRP=Reversed Sales (“reverse repo”), RT=Reversed transaction (RP or RRP).

18 As of 19 August 2022

19 OT = Outright Transaction, DB = Direct Borrowing, DL = Direct Lending.

20 Discretion of the central bank to expand collateral types, and list of additional collateral types that the central bank can take on a discretionary basis. Also, additional information such as delays required if discretionary collateral changes.

21 Discretion of the central bank to expand collateral types, and list of additional collateral types that the central bank can take on a discretionary basis. Also, additional information such as delays required if discretionary collateral changes.