PHNOM PENH (Xinhua): Cambodia's microfinance sector reported that 25 per cent of its loans and 16 per cent 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 (US$1.37 billion) last year, while the volume of riel deposits at microfinance deposit-taking institutions swelled to 1.52 trillion riel (nearly US$376 million).
"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 US dollars, underscored a year of unparalleled success for the national currency.
"This leap forward symbolises 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."
The South-East Asian country has 87 microfinance institutions, including five microfinance deposit-taking institutions, according to the National Bank of Cambodia, or the central bank.
--BERNAMA-XINHUA
TAGS: cambodia, microfinance sector, cambodia microfinance association
