Cambodia's dollarization; Help or handicap ?

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Re: Cambodia's dollarization; Help or handicap ?

Post by newkidontheblock » Sun Jun 18, 2017 2:18 am

The NBC is just a puppet of iron man. So far the government has shown little restraint in making short minded gains at the cost of the economy and its people.

If the government goes to full Riel, what's to prevent it from printing endless amounts, the big wigs pocketing most of the short term gain before tanking the currency into worthlessness?
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Re: Cambodia's dollarization; Help or handicap ?

Post by vladimir » Tue Jun 20, 2017 6:16 pm

What is to stop them printing random amounts now, or at any time in the last 40 years? Serious question. If Murika can do it, why can't we?
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Re: Cambodia's dollarization; Help or handicap ?

Post by StroppyChops » Tue Jun 20, 2017 6:23 pm

On a serious note, I wonder how much of the metric shit-tonnes of undetectable fake USD coming in over the border is actually used for propping up the government. (<- I need another English teacher to check my syntax here)
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Re: Cambodia's dollarization; Help or handicap ?

Post by vladimir » Wed Jun 21, 2017 6:40 am

StroppyChops wrote:
Tue Jun 20, 2017 6:23 pm
On a serious note, I wonder how much of the metric shit-tonnes of undetectable fake USD coming in over the border is actually used for propping up the government. (<- I need another English teacher to check my syntax here)
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Re: Cambodia's dollarization; Help or handicap ?

Post by CEOCambodiaNews » Thu Aug 24, 2017 5:31 pm

Keeping it riel: Shaking Cambodia's dollar dependency
Amid shift toward local currency, some ask if the transition is worth the trouble
24 August 2017
PHNOM PENH -- Cambodia is a country split between two currencies: the riel, with notes bearing representations of kings past and present, historical landmarks and other figures, and the U.S. dollar, in its ubiquitous green glory. That may be about to change.

The dollar has been in common use in Cambodia since United Nations peacekeeping forces arrived in the early 1990s with a mission to instill democracy. Now, roughly 84% of economic transactions are conducted in dollars, according to an estimate by the National Bank of Cambodia, the central bank.

In Phnom Penh, the capital, it is generally more common to use the greenback -- especially for expensive transactions, since the exchange rate of about 4,100 riel to the dollar can make high-ticket riel purchases dizzying.

But there is growing official pressure to move Cambodia entirely to the riel. Use of the currency is up in 2017, with the central bank injecting about 2 trillion riel ($488 million) into the economy during the first half of the year, up by 18% from 2016.

The currency is increasingly being used for paying taxes, wages, and goods and services, as well as in banking. The central bank has published booklets promoting the riel, especially among young people, and urged businesses to pay wages in riel. More recently, the Ministry of Commerce issued a decree requiring all businesses to price products and services in riel to boost the use of the currency.

Yim Sovann, a spokesman for the Cambodia National Rescue Party, the country's main opposition group, said that a victory for his party at the next general election would lead to a complete switch to the riel within a year. While economists said his promise would be a "disaster," or "impossible," it points to a strong desire to shake the country's dependency on the dollar...
https://asia.nikkei.com/Politics-Econom ... dependency
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Re: Cambodia's dollarization; Help or handicap ?

Post by mauser765 » Thu Aug 24, 2017 5:39 pm

Most sovereign, non-LDC countries have their own currencies.

Using someone else's currency implies fiefdom and makes you subject to the effects of manipulation, I would think.
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Re: Cambodia's dollarization; Help or handicap ?

Post by CEOCambodiaNews » Thu Aug 24, 2017 5:44 pm

mauser765 wrote:
Thu Aug 24, 2017 5:39 pm
Most sovereign, non-LDC countries have their own currencies.

Using someone else's currency implies fiefdom and makes you subject to the effects of manipulation, I would think.
From the link above:
A leading local banker, In Channy, president of Acleda Bank, Cambodia's largest bank, said the use of the riel was a matter of national pride and self-reliance. "How can Cambodia, as a country, rely on the monetary policy of [an]other country?" he asked. "We cannot do anything to make the monetary policy of another country stable. We have no control, no ability to manage the monetary policy of the other currency."

Over-reliance on another country's currency sapped legitimacy from the Cambodian government itself, he argued. "The riel is our sovereign currency," he said. "We reduce our own sovereignty by relying on [a] foreign currency."
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Re: Cambodia's dollarization; Help or handicap ?

Post by timmydownawell » Thu Aug 24, 2017 9:01 pm

They'll need some bigger notes and perhaps consider switching 100/500/1000 riel notes to coins.
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Re: Cambodia's dollarization; Help or handicap ?

Post by mauser765 » Thu Aug 24, 2017 9:33 pm

timmydownawell wrote:
Thu Aug 24, 2017 9:01 pm
They'll need some bigger notes and perhaps consider switching 100/500/1000 riel notes to coins.
Not sure they will do that-look at Vietnam, imagine buying a car or something, you'd need a wheelbarrow.
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Re: Cambodia's dollarization; Help or handicap ?

Post by Username Taken » Thu Aug 24, 2017 9:49 pm

timmydownawell wrote:
Thu Aug 24, 2017 9:01 pm
They'll need some bigger notes and perhaps consider switching 100/500/1000 riel notes to coins.
Can't they just remove a couple of zeros from the value?

i.e. 4000 riel becomes 40 riel.
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