Cambodian Dollarization: Its Policy Implications for LDCs’ Financial Development

This book is the first study to provide a comprehensive picture of the reality and structure of dollarization in Cambodia, which has been achieving rapid economic and financial development since the 2000s. It uses the micro-level data collected through nationwide surveys conducted jointly by the National Bank of Cambodia (NBC) and the JICA Ogata Sadako Research Institute for Peace and Development in 2014 and 2017.

By applying econometric analysis to collected data, the book analyses in detail the structures and mechanisms of dollarization in households, companies, and financial institutions. It also provides detailed information on the historical development of Cambodian dollarization, international comparisons with various cases of dollarization in countries around the world, and the impact of NBC's digital payment platform (called Bakong) on dollarization, and policy measures to curb dollarization. The Cambodian case suggests that dollarization and the financial development of low- and middle-income countries promote each other, meaning that tailored policies to separate them are needed to curb dollarization in these countries..

This book will be of interest to students, researchers and policy makers concerned with dollarization and economics in Southeast Asia.