Background
From 12 to 16 April 2023, a delegation of the National Bank of Cambodia (NBC) led by Deputy Governor Dr. Chea Serey attended the 2023 Spring Meetings of the International Monetary Fund and the World Bank, along with related meetings, in Washington, D.C., United States of America. The Spring Meetings are held annually to discuss regional and global economic outlooks, challenges, and key policy responses to support economic growth in member countries.
Scope of Application
The activities reported concern the NBC’s international engagement in financial sector development and cooperation, particularly in cross-border payments and experience sharing on payment systems. The memorandum of understanding (MoU) signed with the National Bank of Rwanda covers cooperation in various areas of financial sector development between Cambodia and Rwanda.
Key Provisions or Decisions
During the mission, the NBC Deputy Governor, representing the National Bank of Cambodia, and Governor Rwangombwa John, representing the National Bank of Rwanda, signed a memorandum of understanding titled on cooperation in various areas of financial sector development between the two countries. The MoU aims to strengthen the sharing of experience and cross-border payment arrangements.
In addition, the Deputy Governor received a delegation from the Banque de France, led by Emmanuelle Assouan, Director General for Financial Stability and Operations. The two sides held working-level discussions, during which the NBC shared its experience in developing Cambodia’s payment systems, with particular reference to the Bakong payment system.
Implications for Investors, Businesses, or Compliance
The MoU between the National Bank of Cambodia and the National Bank of Rwanda establishes a formal framework for cooperation in financial sector development and cross-border payment initiatives, which may support future enhancements in payment connectivity and financial services between the two jurisdictions. The NBC’s engagement with the Banque de France and its presentation of the Bakong system also indicate ongoing development of Cambodia’s payment infrastructure and its alignment with international counterparts. While no specific regulatory changes or compliance obligations are detailed in this update, stakeholders in the financial sector may monitor subsequent NBC communications for any operational or regulatory measures arising from these cooperation activities.
Official Source
The information is based on an official announcement from the National Bank of Cambodia published on its verified communication channel on 17 April 2023.
