Cambodia's dollarization; Help or handicap ?

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Re: Cambodia's dollarization; Help or handicap ?

Post by cptrelentless » Thu Aug 24, 2017 11:27 pm

They had coins years ago, the problem is the material in the coin is worth more than the coin. They'd need to re-stamp them or something. Not having much in the way of mineral resources makes it expensive to stamp new coins. The Laos managed it with Kip. The thing with the Riel is it not being traded internationally, so you can't keep the value inflated. As soon as they convert to a full Riel economy it'll tank, both by intention and by natural levelling, there are very few exports to boost its value, no real industrialised agriculture, little manufacturing, no real resources now all the trees have gone and a booming mining industry seems to be a pipe dream. Better get your lexus now. They really need to grow the economy first, but that relies on the higher ups not sucking every penny out of the system to sink into shady off-shore funds.
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Re: Cambodia's dollarization; Help or handicap ?

Post by timmydownawell » Fri Aug 25, 2017 7:18 am

mauser765 wrote:
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.
...that's why I said they need bigger notes (i.e. higher value)
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Re: Cambodia's dollarization; Help or handicap ?

Post by timmydownawell » Fri Aug 25, 2017 7:22 am

Username Taken wrote:
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.
Or 4000 becomes 4, even better (would need some "cents" for the smaller value though)

Indonesia's been talking bout doing this to the Rupiah for years, I see it's reappeared in the news: http://indonesiaexpat.biz/news/bank-ind ... te-rupiah/
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Re: Cambodia's dollarization; Help or handicap ?

Post by mauser765 » Fri Aug 25, 2017 7:28 am

timmydownawell wrote:
Fri Aug 25, 2017 7:18 am
mauser765 wrote:
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.
...that's why I said they need bigger notes (i.e. higher value)
Yes, I know, but even though Vietnam has a worse problem, they haven't created notes of very high value. I assume there's a reason for that, I'm just not sure what it is. As far as I know, Cambodia's highest denomination is 50,000, or around $12.50. John Bingham would know.

The highest in Vietnam is 500,000 dong, or about USD 22, first issued in 2003.

https://currencyliquidator.com/blog/vie ... -features/
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Re: Cambodia's dollarization; Help or handicap ?

Post by mrfusion » Fri Aug 25, 2017 11:27 am

cptrelentless wrote:
Thu Aug 24, 2017 11:27 pm
They had coins years ago, the problem is the material in the coin is worth more than the coin. They'd need to re-stamp them or something. Not having much in the way of mineral resources makes it expensive to stamp new coins. The Laos managed it with Kip. The thing with the Riel is it not being traded internationally, so you can't keep the value inflated. As soon as they convert to a full Riel economy it'll tank, both by intention and by natural levelling, there are very few exports to boost its value, no real industrialised agriculture, little manufacturing, no real resources now all the trees have gone and a booming mining industry seems to be a pipe dream. Better get your lexus now. They really need to grow the economy first, but that relies on the higher ups not sucking every penny out of the system to sink into shady off-shore funds.
Cambodia probably should use the US cents as well, let them stamp it, their penny or nickle is worth about 40 and 200 riels.
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Re: Cambodia's dollarization; Help or handicap ?

Post by cptrelentless » Fri Aug 25, 2017 8:45 pm

mauser765 wrote:
Fri Aug 25, 2017 7:28 am


Yes, I know, but even though Vietnam has a worse problem, they haven't created notes of very high value. I assume there's a reason for that, I'm just not sure what it is. As far as I know, Cambodia's highest denomination is 50,000, or around $12.50. John Bingham would know.

The highest in Vietnam is 500,000 dong, or about USD 22, first issued in 2003.

https://currencyliquidator.com/blog/vie ... -features/
Highest denomination is 100,000. People keep assuring me that they are in circulation but in three years of continuously living there I didn't see one once. You get the 50,000 turd brown ones if you deal with the locals a lot. They seem to have a separate pool of bank notes.
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Re: Cambodia's dollarization; Help or handicap ?

Post by Bertros » Sat Aug 26, 2017 12:43 am

or....things could just stay the same :good: . After taking it in the keister when the Dollar was so weak and going to Thailand (baht went from around 43-46 to 30 to the dollar and don't get me started about the dollar hitting $1.54/euro), it's nice to go some where that the exchange rate doesn't put the screws to your wallet.

keep the same, we like it. :thumb:


just sayin'


Bertros :hattip:



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Re: Cambodia's dollarization; Help or handicap ?

Post by CEOCambodiaNews » Thu May 23, 2019 2:00 am

NBC committed to strengthen confidence in the riel
May 22, 2019
The National Bank of Cambodia (NBC) said it will continue to strengthen confidence in the local currency by stabilising the currency exchange rate and enforcing its existing financial tools to boost the riel’s usage.

NBC’s Monetary Policy Committee conducted a meeting last Friday and according to its press release issued the same day, it will continue stabilising the currency exchange rate based on actual economic change.

It will also stabilise the interest rate of liquidity-providing collateralised operations (LPCO) and make 800 billion Cambodian riel ($200 million, Bt6.4 billion) a month available for banks and financial institutions to obtain funds through the LPCO.

The committee also committed to continue boosting awareness of riel usage and follow through on enforcement requiring banks and micro-financial institutions to have at least 10 per cent of their total outstanding loans in the local currency.
http://www.nationmultimedia.com/detail/ ... s/30369759
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Re: Cambodia's dollarization; Help or handicap ?

Post by explorer » Thu May 23, 2019 5:30 am

Cambodian business people dont trust the Riel. Many foreigners would not care.

The Riel will devalue again one day.

If people were to stop using dollars and only use Riel, that would trigger a huge devaluation. Hence Cambodian business people insist on Dollars.

The Riel has remained fairly stable for many years because Dollars are used for large transactions. Riel is only for small change.
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