BALANCE OF PAYMENT

CAMBODIA
Recap
What is Balance of Payment? Why is it matter?

CURRENT ACCOUNT CAPITAL ACCOUNT FINANCIAL ACCOUNT

. Balance of trade in goods
. Balance of trade in services
. Income
. Current Transfer
. Capital Transfer
. Non-produced, Non-financial
Asset
. Foreign Direct Investment
. Portfolio Investment
. Reserve assets (refer to foreign currency that
central bank can buy or sell to influence the value
of the country's currency)
. Official borrowing
 CURRENT ACCOUNT
2019 = -16,513 KHR Billion Riel
2020 = -8,928 KHR Billion Riel
2021 = -50,474 KHR Billion Riel
22Q1 = -9,269 KHR Billion Riel
22Q2 = -12,275 KHR Billion Riel

Data from CAPITAL ACCOUNT

2019 = 1,442 KHR Billion Riel
2020 = 1,057 KHR Billion Riel

National Bank 2021 = 999 KHR Billion Riel

22Q1 = 149 KHR Billion Riel
22Q2 = 149 KHR Billion Riel

of Cambodia FINANCIAL ACCOUNT

2019 = -15,003 KHR Billion Riel
2020 = -9,676 KHR Billion Riel
2021 = -49,041 KHR Billion Riel
22Q1 = -10,512 KHR Billion Riel
22Q2 = -8,353 KHR Billion Riel
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 CURRENT ACCOUNT
2019 = -16,513 KHR Billion Riel
2020 = -8,928 KHR Billion Riel
2021 = -50,474 KHR Billion Riel
22Q1 = -9,269 KHR Billion Riel
22Q2 = -12,275 KHR Billion Riel

CAPITAL ACCOUNT

so, which mean a 2019 = 1,442 KHR Billion Riel

2020 = 1,057 KHR Billion Riel

current account 2021 = 999 KHR Billion Riel

22Q1 = 149 KHR Billion Riel

deficit 22Q2 = 149 KHR Billion Riel

FINANCIAL ACCOUNT
2019 = -15,003 KHR Billion Riel
2020 = -9,676 KHR Billion Riel
2021 = -49,041 KHR Billion Riel
22Q1 = -10,512 KHR Billion Riel
22Q2 = -8,353 KHR Billion Riel
 CURRENT ACCOUNT DEFICIT CAUSE DEPREICATION OF
KHMER RIEL
Under floating exchange rate. market force create a downward
pressure on the currency exchange rate. Thereotically, this
would lead import to fall, until the current account deficit is
eliminated. Consequently, there could be fewer import of
needed goods.

UNSUSTAINABLE & INCREASING DEBT

What should be If a current account deficit is financed through borrowing.

worry? Current account deficit are paid for by Financial account

surpluses. It must either through loans from abroad, or selling
financial asset.

FOREIGN OWNERSHIP OF DOMESTIC ASSET

When a country in a current account deficit, it means run a
surplus on financial or capital account. This means foreigner
has increasing claims over domestic assets which they could
desire to be returned at anytime.