PhnomPenhPost-June 25, 2020

The economic downturn has supplied the National Bank of Cambodia with an opportunity to step up its agenda to return the shine on the riel while coping with Covid-19 challenges. Late May, an instruction by the National Bank of Cambodia (NBC) to financial institutions to call back smaller US dollar notes $1, $2 and $5, in three months ending August 31, 2020, created panic in the market as retailers and consumers alike thought the bills were no longer legal tender. Overnight, scores of retailers including roadside food operators declined to accept the notes, fearing an income loss if the banks rejected their deposits. The central bank’s move, the latest installation of strategies to raise the circulation of riel in the economy, prompted a clarification by Prime Minister Hun Sen that the notes are still legal for use.

Read more at: https://www.phnompenhpost.com/special-reports/keeping-it-riel-cambodia-steps-de-dollarisation