Likelihood of Cambodia moving from USD to riel?

Kenr · Post by **Kenr** » Tue Jul 19, 2022 10:40 am

TWY wrote: ↑Tue Jul 19, 2022 10:00 am
Jerry Atrick wrote: ↑Mon Jul 18, 2022 1:24 pm US dollar isn't backed by much more than dogshit & they are printing them as though it's going out of fashion - so definitely a wise move to not be dollar dependent in the medium to long term future
----------------

Regardless of what is backing the USD, I'm glad that Cambodia still uses it as the primary form of tender. I suspect that if the Riel was a free floating currency we'd be seeing a LOT more inflation than we currently are.

There is also the advantage to local businesses of conducting business in USD and purchasing from abroad in USD. Much lower transactional costs.

I understand the idea of promoting national identity - but perhaps part of Cambodia's national identity is that it had a terrible war and destruction and part of the rebuilding of the country involved using the USD to promote stability.

I agree. It seems one thing you don’t have to worry about is the fluctuation of the local currency when converting, such as Thailand and the baht. I know for the Euro against the US dollar now sucks when converting because the US dollar is so strong now, just as it is against most of the other Western currencies.

It’s definitely a bonus to being able to use your home currency in another country, hoping it stays that way for awhile.

newkidontheblock · Post by **newkidontheblock** » Tue Jul 19, 2022 5:08 pm

So does the peg prevent the government from printing unlimited Riels? And is there even any published information about the Cambodian government’s M2 money supply?

Kammekor · Post by **Kammekor** » Tue Jul 19, 2022 8:14 pm

mi1 wrote: ↑Tue Jul 19, 2022 10:26 am
TWY wrote: ↑Tue Jul 19, 2022 10:00 am I understand the idea of promoting national identity - but perhaps part of Cambodia's national identity is that it had a terrible war and destruction and part of the rebuilding of the country involved using the USD to promote stability.
Is so much more then national identity. I am not economist but i assume central bank here do not have influence over Interest rates & refinancing operations (as they cannot create as much fiat money as required [ basically they cannot print out more USD when needed])

https://en.wikipedia.org/wiki/Monetary_policy

Given the c-word being present all around Cambodia

Spoiler:

I think keeping the dollar as a second currency and a pegged currency is a blessing for most Cambodians. I'm not sure I would trust the National Bank of Cambodia in running the currency without the restraint of the USD being the second one.

Kammekor · Post by **Kammekor** » Tue Jul 19, 2022 8:19 pm

newkidontheblock wrote: ↑Tue Jul 19, 2022 5:08 pm So does the peg prevent the government from printing unlimited Riels? And is there even any published information about the Cambodian government’s M2 money supply?

No, there's not.
But at least the pegging restrained whatever they might want to do / are doing.

Doc67 · Post by **Doc67** » Wed Jul 20, 2022 7:24 am

vivathedivas wrote: ↑Tue Jul 19, 2022 9:29 am
Doc67 wrote: ↑Tue Jul 19, 2022 8:36 am
Kammekor wrote: ↑Mon Jul 18, 2022 4:35 pm
Jerry Atrick wrote: ↑Mon Jul 18, 2022 1:24 pm US dollar isn't backed by much more than dogshit & they are printing them as though it's going out of fashion - so definitely a wise move to not be dollar dependent in the medium to long term future
The Cambodian Riel on the other hand is backed up by eh......
The KHR is backed by the 'full faith and credit' of the Kingdom of Cambodia.

Spoiler:

Yet here you are - or were - for an extended period

Obviously because your country of origin had so much to offer, right?

What has your country of origin's growth rate been for the last 15 years?

What was their COVID vaccination rate?

What do you pay for a pint at the nearest pub? A meal?

Maybe you've missed my point due to your misplaced superiority, but it's this:

If it's so laughable, why did you bother to come here? Life is short, stay in environments you can be proud of, right?

You had a point? Really. I thought you were just trolling.

How can you misunderstand a flippant reply about an economic principle* (the KOW underwriting the activities of the NCB viz a viz the KHR) and start with that old hackneyed "why did you come here / why are are you still here" drivel?

Read the thread and the comment to which I was replying to.

If anyone is missing the point with "misplaced superiority", it is you.

https://www.accountingtools.com/article ... nstitution.

CEOCambodiaNews · Post by **CEOCambodiaNews** » Sun Apr 09, 2023 5:35 pm

Long read
April 6, 2023
Riel circulation in provincial economies on the rise
Kang Sothear / Khmer Times

A majority of population in provinces in which National Bank of Cambodia (NBC) had organised riel promotion events have started using the national currency in their daily economic activities compared to the usage of foreign currencies, said a senior NBC official.

Last year Chea Serey, NBC’s Deputy Governor, spearheaded a team to promote riel usage in Kampong Cham, Battambang, Kampong Thom and Kampot that are potential in agriculture, agro-industry, tourism and trade with financial support provided by provincial and district branches of private banks. The events were attended by large numbers of senior provincial officials, representatives of financial institutions, students and others.

Serey said at least 79 percent of the total population in these provinces have used riel approximately 80 percent of all their daily spending on necessary items for economic activities. Further she said based on survey data that operating revenues and expenses in riel at branches of banks and financial institutions operating in some of those provinces have increased remarkably in the last year compared to the same period five years ago and its pace was faster than that of US dollar.

“The central bank prints riel only, while the dollar is printed by the US. So, we have only influence on loans in riel, but when we release loans in riel, banks or financial institutions say consumers need loans in dollars, which means imposing policies is like not imposing… Currently we also provide loans in riel but the power of riel in the market is still very limited as usage of riel plays a small part,” Serey said.

“It means that when we use foreign currencies very much, we would lose our ownership,” said Serey, adding that usage of riel covers about 20 percent of the economy as a whole, while the dollar covers approximately 80 percent. “I support… saying that riel is our national currency. Using riel is like protecting economic sovereignty … economic development,” she said.
Full article: https://www.khmertimeskh.com/501268687/ ... he-rise-2/

Bluenose · Post by **Bluenose** » Sun Apr 09, 2023 7:12 pm

My salary is paid in USD, I pay my rent mainly in USD ($100 bills and the balance in KHR), but day to day I just use KHR and always withdraw KHR from ATMs.
Most of my Khmer colleagues say they do the same.

Kammekor · Post by **Kammekor** » Sun Apr 09, 2023 10:15 pm

Bluenose wrote: ↑Sun Apr 09, 2023 7:12 pm My salary is paid in USD, I pay my rent mainly in USD ($100 bills and the balance in KHR), but day to day I just use KHR and always withdraw KHR from ATMs.
Most of my Khmer colleagues say they do the same.

I think the National Bank of Cambodia is just hoping, for larger sums generally USD is King. for day to day coffees and breakfasts Riels are OK too. For the rest, USD and gold are Queen and King.

newkidontheblock · Post by **newkidontheblock** » Mon Apr 10, 2023 4:21 am

Kammekor wrote:I think the National Bank of Cambodia is just hoping, for larger sums generally USD is King. for day to day coffees and breakfasts Riels are OK too. For the rest, USD and gold are Queen and King.

You pay your big bills in gold bouillon?

Yikes, you are truly rich.

Much richer than I could ever pretend to be.
Only gold I have is my ring, ‘platinum’ gold, and missus jewelry.

Kammekor · Post by **Kammekor** » Mon Apr 10, 2023 7:33 am

newkidontheblock wrote: ↑Mon Apr 10, 2023 4:21 am
Kammekor wrote:I think the National Bank of Cambodia is just hoping, for larger sums generally USD is King. for day to day coffees and breakfasts Riels are OK too. For the rest, USD and gold are Queen and King.
You pay your big bills in gold bouillon?

Yikes, you are truly rich.

Much richer than I could ever pretend to be.
Only gold I have is my ring, ‘platinum’ gold, and missus jewelry.

There you have it. She prefers stashing gold over riels, and probably even over USD.

Likelihood of Cambodia moving from USD to riel?

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