Negative consequences of not promoting national currency?

[Samouth]

I am not really sure about the economic, but i do believe that there are some negative consequences of not promoting or trying use the national currency. As far as i know, every countries in the world try to promote and use their own currency for instance the neighboring country of Cambodia like Vietnam and Thailand, unlike Cambodia where almost all kind of currency are accepted almost everywhere throughout the country especially US currency. Not to mention our people including me like using US currency .

Do we have any economists here who can precisely explain or tell about the negative consequences?

Note, everyone input is highly appreciated.

[General Mackevili]

I think Cambodia should just peg it to the dollar. Easy peasy.

[Jamie_Lambo]

fuck the american dollar, it will be worthless soon

[TheGrinchSR]

I am not really sure about the economic, but i do believe that there are some negative consequences of not promoting or trying use the national currency. As far as i know, every countries in the world try to promote and use their own currency for instance the neighboring country of Cambodia like Vietnam and Thailand, unlike Cambodia where almost all kind of currency are accepted almost everywhere throughout the country especially US currency. Not to mention our people including me like using US currency .

Do we have any economists here who can precisely explain or tell about the negative consequences?

Note, everyone input is highly appreciated.

There are both negative and positive consequences. The hard truth is that if the Cambodian Riel was the actual currency of the country and was to be freely traded - it would be near worthless every time a minor economic bump hit Cambodia. The economy here would be ruined when that happened. Speculators would make a fortune.

On the flip side, using the dollar means accepting the international agreement on the dollar's value. When all other currencies in Asia, as they are now, are devalued against the dollar it makes exports from Cambodia more expensive (though it's worth noting that imports are actually cheaper than in other countries). This hinders Cambodia's ability to compete economically. Well... it would if most of the other currencies in Indochina weren't pegged to the dollar too (even if they are used more often in day-to-day transactions in order to shore up hard currency reserves).

[wackyjacky]

fuck the american dollar, it will be worthless soon

Fill those pockets up with Riel then Jamie and good luck with that !

[Kampong Spooner]

I for one prefer to be paid in a real currency with dead US presidents every month and not some shitty, worthless bumwads with the face of the dead king. Call me old fashioned, but I trust the greenback a hell of a lot more than the Riel, which is fine in the market but useless for larger items and getting outta Dodge. One of my peeves is paying for something like petrol or phone credit in Riel and being charged extra and when paying in $ getting change in Riel (no extra).

Maybe unrelated, but I'm seeing a load more big, newly printed denominations being circulated out in the provinces, a new 50,000 and a 100,000R are doing the rounds, with the shiny strip it almost looks like proper money.

[Jamie_Lambo]

i wouldnt trust the american dollar too much in the future, why do you think America is so obsessed with the oil in the middle east? because it gets traded in american dollars, if the Gulf were to end trading their oil from USD and use Gold instead, (which they have had many meetings about over the past few years) it would seriously effect the USD, the reported deadline in 2018 could see some big changes!

[Kampong Spooner]

I'll ask to be paid in gold next month then.

[Jamie_Lambo]

haha khmers do love their gold...

[prahkeitouj]

If we aren't civil servant, our salary is Dollar.

I wonder why Riel is cheaper than Baht ? Does it relate to economic? How about Vietnam , why their currency is very cheap?