Cambodia's dollarization; Help or handicap ?
- cptrelentless
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Re: Cambodia's dollarization; Help or handicap ?
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.
- timmydownawell
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Re: Cambodia's dollarization; Help or handicap ?
...that's why I said they need bigger notes (i.e. higher value)mauser765 wrote: ↑Thu Aug 24, 2017 9:33 pmNot sure they will do that-look at Vietnam, imagine buying a car or something, you'd need a wheelbarrow.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.
You must walk in traffic to cross the road - Cambodian proverb
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Re: Cambodia's dollarization; Help or handicap ?
Or 4000 becomes 4, even better (would need some "cents" for the smaller value though)Username Taken wrote: ↑Thu Aug 24, 2017 9:49 pmCan't they just remove a couple of zeros from the value?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.
i.e. 4000 riel becomes 40 riel.
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/
You must walk in traffic to cross the road - Cambodian proverb
Re: Cambodia's dollarization; Help or handicap ?
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.timmydownawell wrote: ↑Fri Aug 25, 2017 7:18 am...that's why I said they need bigger notes (i.e. higher value)mauser765 wrote: ↑Thu Aug 24, 2017 9:33 pmNot sure they will do that-look at Vietnam, imagine buying a car or something, you'd need a wheelbarrow.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.
The highest in Vietnam is 500,000 dong, or about USD 22, first issued in 2003.
https://currencyliquidator.com/blog/vie ... -features/
Money is human happiness in the abstract; he, then, who is no longer capable of enjoying human happiness in the concrete devotes himself utterly to money.
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Re: Cambodia's dollarization; Help or handicap ?
Cambodia probably should use the US cents as well, let them stamp it, their penny or nickle is worth about 40 and 200 riels.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.
- cptrelentless
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Re: Cambodia's dollarization; Help or handicap ?
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.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/
Re: Cambodia's dollarization; Help or handicap ?
or....things could just stay the same . 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.
just sayin'
Bertros
keep the same, we like it.
just sayin'
Bertros
A taste of the bait is worth the pain of the hook.....
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Re: Cambodia's dollarization; Help or handicap ?
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
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 ?
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.
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.
## I thought I knew all the answers, but they changed all the questions. ##
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