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.