Research Results Presented at Event to Mark the 39th anniversary of Khmer Riel Day

The National Bank of Cambodia (NBC) held an event to commemorate the 39th anniversary of the reintroduction of the riel, Cambodia's national currency, in the country's capital, Phnom Penh, on March 25, 2019.

In Cambodia, the Pol Pot regime abolished the national currency, but the NBC reintroduced it on March 20, 1980, after the Pol Pot regime fell, and the circulation of national currency began again. The purpose of this event was to increase the public’s awareness of the importance of using the national currency in Cambodia, where the U.S. dollar continues to be used frequently.

At this event, JICA-RI’s Aiba presented the results of the two surveys conducted so far, along with policy proposals based on those results.

He pointed out that looking at the results of the surveys, the use of the riel is increasing by companies and households, but lending and deposits remain centered on the dollar in the banking sector. In particular, he continued, the capital flow from outside to the domestic banking sector, which has grown large in recent years, has supplied dollars domestically. Though deposits in riel are increasing rapidly, the level of dollarization throughout the country has not fallen.

At the end of the event, a panel discussion was held, with Chea Serey of the NBC serving as moderator.

In response to the audience question "Why is it that the higher the income of a person the more they borrow in U.S. dollars?" Aiba said that the main reason is that higher the income the more of their income is paid in dollars. He went on to say that another problem is that often there is no riel option available when a person borrows a large amount of money.