## External Drivers of Credit Cycles in Cambodia

_Selected Issues Papers, January 8, 2026_

## Source details

**Canonical URL:** [External Drivers of Credit Cycles in Cambodia](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049)

## Other formats

- [Markdown version](/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049/index.md)
- [Structured JSON version](/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049/index.json)
- [Bundle manifest](/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049/bundle-manifest.json)

## Bibliographic details
- Authors: Natasha X Che
- Published: January 8, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229034708.018

---

### Main findings
- Common global and regional factors explain over 60 percent of credit growth variance in Cambodia.
- Cambodia exhibits one of Asia’s highest sensitivities to external conditions.
- External shocks—including US monetary policy, global risk sentiment, and China’s growth—transmit primarily through a common global credit channel rather than direct bilateral linkages.
- Cambodia’s high exposure to the global financial cycle is amplified by a highly dollarized economy.

### Methodology
- The paper uses a dynamic factor model to investigate the external drivers of Cambodia’s credit cycles.

### Key statistics and publication metadata
- Pages: 13
- Volume: 2026
- Issue: 002
- Series: Selected Issues Paper No. 2026/002
- DOI: https://doi.org/10.5089/9798229034708.018
- Stock No: SIPEA2026002
- ISBN: 9798229034708
- ISSN: 2958-7875
- Author: Natasha X Che
- Publication date: January 8, 2026

### Policy implications and recommendations
- The high exposure to the global financial cycle highlights the necessity of macroprudential policies to manage domestic volatility in Cambodia’s highly dollarized economy.

_External Drivers of Credit Cycles in Cambodia — Selected Issues Papers (Natasha X Che, January 8, 2026)_

---

## Content in this bundle

- **External Drivers of Credit Cycles in Cambodia**
  - [External Drivers of Credit Cycles in Cambodia (Markdown version)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026002.pdf.md){rel="alternate" type="text/markdown"}
  - [External Drivers of Credit Cycles in Cambodia (PDF)](/-/media/files/publications/selected-issues-papers/2026/english/sipea2026002.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/01/08/external-drivers-of-credit-cycles-in-cambodia-573049_