Logo of Phnom Penh Post newspaper Phnom Penh Post - CRF seeks payments in yuan

CRF seeks payments in yuan

Content image - Phnom Penh Post
Cambodia exported 300,252 tonnes of rice to the international market in the first four months of this year – equivalent to $210 million. Post staff

CRF seeks payments in yuan

Cambodia Rice Federation (CRF) vice-president Chan Sokheang plans tonegotiate with his Chinese counterpart for cash-settlements in riel and yuan currencies for exports of milled rice.

The move is intended to facilitate payments and boost exports.

Sokheang told The Post on Tuesday that since exports to China have sharply increased in recent years, it is important that the CRF and its members work with the National Bank of Cambodia (NBC), the central bank, to facilitate payments in the local currencies.

“All members agreed to request that the NBC coordinate cash settlements in riel and yuan,” said Sokheang.

“We typically buy paddy in the local currency and then we export in US dollars, which requires us to exchange yuan to US dollars and US dollars to yuan and then into riel. This makes both sides lose money on the exchange rate.”

He said time and money would be saved if payments could be made directly in yuan via banks in China and Chinese-owned banks in the Kingdom.

“We’ve asked the NBC to coordinate the issue but we need to ensure that banks in China can adjust their interest rates in consonance with the forecasted fixed exchange rate between the riel and the yuan during a given period.

“If we can do that, we can expedite a Memorandum of Understanding [MoU] over the cash-settlement,” he said.

Cambodia exported 300,252 tonnes of rice to the international market in the first four months of this year – equivalent to $210 million, the CRF said in a report. This is the highest export volume in the past decade.

The export volume is 40.46 per cent over the 213,763 tonnes reported in the same period last year.

China accounted for 41 per cent of exports or 122,094 tonnes, said the CRF. The EU and the UK accounted for 32 per cent or 97,337 tonnes. ASEAN countries made up 13 per cent or 37,428 tonnes and other countries 14 per cent or 43,339 tonnes.

Sokheang, who is also a chairman and CEO of Signatures of Asia Co Ltd, said that his exports to the Chinese market have gradually increased to 15 per cent of his firm’s total exports.

“If we can make the payments smoothly, we will see a sharp increase in [exports of] our milled rice to China.”

“And Cambodia will become a model of yuan cash settlement for international trade so that China’s leaders can promote it [yuan cash settlement services] to the world.

“Then we will get more market access for other products into the Chinese market.”

Cambodia and China have concluded their third round of negotiations for a free trade agreement (FTA), the Ministry of Commerce said last week.

Both sides have solved the remaining issues in the agreement text and approved in principle the market access of goods and services, it said. It is expected to be signed by the end of the year.

MOST VIEWED

  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of