Background
The National Bank of Cambodia (NBC) released an update on Cambodia’s external sector performance in the third quarter of 2022, focusing on the balance of payments. The communication outlines developments in the current account, capital and financial accounts, and the level of international reserves during this period.
Scope of Application
The information applies to Cambodia’s aggregate external accounts for the third quarter of 2022. It covers the balance of payments position, including the current account, capital and financial accounts, and the stock of international reserves measured against imports of goods and services.
Key Provisions or Decisions
According to the NBC update:
- The overall balance of payments remained in a stable condition in Q3 2022, but registered a slight deficit.
- The minor overall deficit resulted from an increase in the combined current and capital account deficit that exceeded inflows recorded in the financial account.
- The expansion of the current account deficit was mainly driven by a widening trade deficit in goods.
- The services account deficit improved, supported by an increase in tourist arrivals.
- Receipts from workers’ remittances increased during the period.
- International reserves were reported as sufficient to cover approximately 6.5 months of imports of goods and services.
Implications for Investors, Businesses, or Compliance
The NBC’s update indicates that, despite a modest overall balance of payments deficit linked to a larger trade gap, Cambodia’s external position in Q3 2022 remained broadly stable. The improvement in the services account and higher remittance inflows provided partial offset to the wider trade deficit. The reported level of international reserves, covering around 6.5 months of imports, signals continued capacity to meet external payment obligations and may be relevant for entities assessing external vulnerability, foreign exchange exposure, and macroeconomic risk in Cambodia.
Official Source
The information is based on an official communication from the National Bank of Cambodia published on its verified Facebook page on 13 February 2023.
