Moody’s Investors Service says that any prolonged dollar weakness is likely to benefit Asian borrowers outside of Japan but have a limited impact.
In a statement issued in Singapore, the US credit rating agency said some market experts noted that while this would weigh on the profitability of some companies with significant US dollar revenues, it would lower debt-servicing costs for Asian excluding Japanese issuers and have a limited impact overall.
The authorities underscore the importance of maintaining exchange rate stability as a nominal anchor to help keep inflation manageable. However, they are aware that a high degree of dollarisation continues to limit the National Bank of Cambodia’s (NBC) ability to implement monetary policy effectively./.
