National Bank of Cambodia (NBC) and the Bank of Korea (BOK) on Friday signed a joint-research agreement geared towards the close collaboration between researchers in support of the development of the economic and financial system in Cambodia.
The expected outcomes are the release of a new research paper as well as an input to the policies that could lead to the maintaining of stronger financial stability in Cambodia.
The agreement falls under the Bank of Korea-Knowledge Partnership Program (BOK-KPP) on Macroeconomic and Financial Linkage: Analysis and Implications for Cambodia’s economy in 2018.
Based on the agreement, the research paper is expected to be completed and released in a seminar in December 2018.
According to the agreement reached on Friday last week, the research programme under BOK-KPP would give the NBC’s researchers the opportunity to closely collaborate with researchers from BOK and Yonsei University.
The aim is to enhance the analytical skills and study of the macroeconomic and financial linkages with the application of an economic model.
Neav Chanthana, NBCs deputy governor, said on Friday this is the third collaboration under BOK-KPP, after the first one in 2016 and the second one in 2017.
She said that these researches have contributed towards enhancing NBC staff capacities, in formulating monetary policy to achieve price stability as well as sustainable economic growth.
She added that the continuation of the BOK-KPP with NBC may indeed help to enhance staff capacity in modelling for macro-financial linkage and studying the spillovers from the macro-economy to the financial sector and vice versa.
“This collaboration with BOK would improve the staff capacity in formulating macro-prudential policies, to achieve financial stability as well as research skills that are currently lacking,” Ms Chanthana said.
“We do believe that through this programme, the amicable relationship between the NBC and the BOK would be enriched further,” she said.
Seunghee Lee, deputy director general of the International Affairs Department at the Bank of Korea, said the knowledge partnership programme with NBC is to foster cooperation and to strengthen mutual understanding between the Cambodian central bank and Bank of Korea.
“2018 is the third year of the project, and I believe that the continuous endeavours will reinforce the collaborative relationship and close ties between the two central banks,” Mr Lee said.
“This year we decided to focus on the linkage between the financial sector, and real sector especially on four major industries including garment, construction, agriculture, and tourism,” Mr Lee said.
“In addition to that, we will make a study about the de-dollarization impact on monetary policy mechanism. This topic seems very challenging, given the limited data available in the related fields,” said Mr Lee.
However, Mr Lee said the research findings would be helpful to achieve robust financial market development and sustainable economic growth of the Cambodian economy.
He said that in order to implement this important project, the Bank of Korea has carefully chosen the Yonsei University’s research institution because it had a successful project, including 2016 KPP project with NBC, in the past.