PHNOM PENH: Cambodia and China have entered into cooperation on financial innovation and clearing and settlement arrangements, to facilitate efficient and secure cross-border payment transactions between the two countries.

The Memorandums of Understanding (MoUs) on the Cooperation in the Area of Financial Innovation and Payment Systems and the Establishment of a Clearing and Settlement Arrangement in Cambodia were signed on Nov. 21 in Beijing, China between the National Bank of Cambodia (NBC) and the People's Bank of China.

H.E. Dr. Chea Serey, Governor of NBC, and H.E. Dr. Pan Gongsheng, Governor of the People's Bank of China were the signatories.

According to NBC, the first MoU intends to facilitate efficient and secure cross-border payment transactions between Cambodia and China and to foster innovation and the adoption of financial technology in the banking and financial services industry.

This cooperation will enhance confidence, security, efficiency, stability, and inclusion in the sector, and support the policies of the Royal Government of Cambodia in the development of the economy and digital society.

For the second MoU, both parties have agreed to enhance coordination and cooperation to strengthen the capabilities of the Cambodian banking sector to better serve the increasing bilateral trade, investments, and financial flows between China and Cambodia.

By innovating financial products and services offered by Cambodian banks to Chinese investors, this MoU will contribute to enhancing Cambodia's competitiveness and attractiveness as an investment destination.