Discussion to stop use of US $1, $2 and $5 notes

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Kammekor
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by Kammekor »

It simply doesn't make sense to use a foreign currency beside you own currency to gain economic stability and then not use all denominations of that currency.

The National Bank of Cambodia shouldn't provide banks and MFI's with a choice. Just make them pay. They profit from the use of USD, so make them bear the cost too.

Hybrid solutions like this are just not well thought through and with a low educated population like the Cambodians relying on FB for their news it's asking for trouble.
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by Duncan »

If they ended up banning or withdrawing all US dollars, that would make them even more in demand, especially in the transfer of illegal dealings. The results being the Riel would end up like what happened in Vietnam jumping to 20,000 dong ? to the $.

Correct me if I'm wrong .
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by fsdfdsdf »

Bitte_Kein_Lexus wrote: Fri May 29, 2020 3:23 pm
fsdfdsdf wrote:I cant see why they would do this, unless they are running out. how do they get the US cash? is the US buying things by trading them for suitcases of $100 notes?
What's so hard to understand? They want locals to use the national currency... You know, like people do in almost every other country in the world? They have "Riel Day" and a bunch of other events now and then aimed at boosting the use of the Riel.

They've never been really serious about it, only sort of "encouragement", so this is a pretty big step. Start there, then maybe it'll move up the numbers...

That being said, I doubt the country will go full Riel within the next five years though, as now too many Chinese (and Khmer) like using the USD. Hell, I'm damn happy I'm paid in USD... Keeps the trust/economy fairly stable, but I'm guessing it doesn't give the National Bank much flexibility.
I think you answer your own question. Until they stop using $100s and $20s and $10 this is just window dressing. if they do stop using $100s and $20s and $10s they will destabilize their economy.
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by armchairlawyer »

Duncan wrote: Sat May 30, 2020 5:22 pm If they ended up banning or withdrawing all US dollars, that would make them even more in demand, especially in the transfer of illegal dealings. The results being the Riel would end up like what happened in Vietnam jumping to 20,000 dong ? to the $.

Correct me if I'm wrong .
I may be wrong but I believe you're wrong. The Dong went down because of the economic fundamentals, principally government spending vs. revenue. In Cambodia the fundamentals have been good in recent years, but it's an uphill struggle now.
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by Duncan »

armchairlawyer wrote: Sat May 30, 2020 5:54 pm
Duncan wrote: Sat May 30, 2020 5:22 pm If they ended up banning or withdrawing all US dollars, that would make them even more in demand, especially in the transfer of illegal dealings. The results being the Riel would end up like what happened in Vietnam jumping to 20,000 dong ? to the $.

Correct me if I'm wrong .
I may be wrong but I believe you're wrong. The Dong went down because of the economic fundamentals, principally government spending vs. revenue. In Cambodia the fundamentals have been good in recent years, but it's an uphill struggle now.

Back in the year 2000 the USA dollar would get you 14,000 dong. Sometime after that ,they changed the rules on using USA currency which created a big blackmarket for USA dollars. ,, today you would get 23,000 Dong for $1
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by armchairlawyer »

Duncan wrote: Sat May 30, 2020 6:32 pm
Back in the year 2000 the USA dollar would get you 14,000 dong. Sometime after that ,they changed the rules on using USA currency which created a big blackmarket for USA dollars. ,, today you would get 23,000 Dong for $1
When I said the dong went down, I meant of course that the USD bought more of them.

So, what was the rule change? There is no black market in Vietnam for USD now is there?
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Re: Discussion to stop use of US $1, $2 and $5 notes

Post by CEOCambodiaNews »

The PM speaks out to reassure the population as the confusion continues.

June 1, 2020
Local vendors shun small US currency
Reports of local vendors refusing to accept small US currency banknotes has continued over the weekend, despite repeated calls from both the Kingdom’s central bank and Prime Minister HE that all US currency banknotes will still be considered “legal tender”.

The confusion started Friday last week after the National Bank of Cambodia’s (NBC) director, Chea Serey, asked commercial banks and microfinance institutions to send it the small US dollar banknotes because it considers them difficult to manage and “there is little demand for them”.

However, many local street and market vendors have confused the “phase out” with an actual “banning” of the notes as officially recognised tender and have been refusing to accept the bills.

The day after the announcement, Khmer Times visited Phnom Penh’s Kandal Market and spoke to various traders who expressed concerns that they did not want to be “stuck” with the notes after August 31 and feared them being “rendered useless in the coming months”.

“I heard this morning that the government wants to ban the use of small US currency, so I don’t want to be stuck with the banknotes when this happens,” a local vendor said.

“What if the bank and MFIs decide to add the additional cost of transportation that the NBC wants to impose on me when I deposit the notes for my loan?” they added

There have also been widespread reports on social media of gas stations and tuk-tuk drivers refusing the currency from customers, expressing the same concerns.

“Here in Sihanoukville. Many shops are [already] refusing to accept the dollar as legal tender,” a Facebook user commented.

In response, Prime Minister HE has directly addressed the concerns stating, “I would like to confirm to the Cambodian people that in addition to the NBC announcement on May 28 that the small US banknotes of $1, $2, and $5 is still widely used and accepted across the country.”

“It was not banned as rumoured said,” he added.

“In the event of a halt to the circulation of the said US bills, an official announcement from the National Bank of Cambodia will be released to the public,” Mr HE said.
https://www.khmertimeskh.com/50728832/l ... -currency/
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Duncan
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Re: Discussion to stop use of US $1, $2 and $5 notes

Post by Duncan »

What is the exchange rate for USA Dollar to Riel at the small money changers today ?
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Re: Discussion to stop use if US $1, $2 and $5 notes

Post by pczz »

Foreigner wrote: Fri May 29, 2020 6:22 am
Duncan wrote: Fri May 29, 2020 5:59 am
Electric Earth wrote: Fri May 29, 2020 5:49 am
Yerg wrote: Fri May 29, 2020 4:39 am Despite my 3 USA trips and couple of years in PP, I’ve never seen nor handled a $2 bill. Before this, if one had been handed to me, I’d have thought it was fake 🤣
Yeah, we don't even use $2 in the states. I'm usually surprised on the rare occasion that I get one as change or something. You can go get them at the bank, though, if you really wanted one for a souvenir or something next time you visit. The only reason they keep them in print is because they say otherwise all of the older $2 would become worth more than $2. They should just ditch them, along with the useless and annoying penny, probably the nickel, and maybe even the dime.

Along with outdated things like Checks / Cheques. Who in their right mind would accept a bit of paper promising to give money when you take it to a bank, when you can get that money directly paid into your bank account using internet banking.
that's all that cash is too isn't it ?
Cash has the advantage of being anonymous. the taxman can see whats in yur bank account a lot easier than he can see whats hiden under your floorboards
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Re: Discussion to stop use of US $1, $2 and $5 notes

Post by explorer »

This was going to happen whether they made it law or not. The small notes get used again and again and again, and eventually get dirty or torn. Then people refuse to accept them. Whoever is the last one holding the note, has worthless money. Cambodians know this, and don't want to be the one holding worthless money. So the standard they would accept was continually being raised. They would not accept notes that were even a bit dirty, or had a very tiny tear.

I had noticed this, and had been spending my $1 notes. I had not spent them all when the law came in, and people refused to accept them.

On that first day I took all of my remaining $1 and $5 notes to the bank and exchanged them for Riel.

I suggest everyone take their $1 and $5 notes to the bank and change the to Riel. In the future, the bank will stop accepting them, and you don't know when that will be.

Obviously people returning to the US can take them to the US.
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