The Cambodian government recently launched a de-dollarization push in Cambodia to increase circulation of the Cambodian riel for everyday purchases while keeping the US dollar for larger payments, according to a recent report. Officials say the move aims to restore routine use of the riel and reduce small-dollar cash in daily commerce.
The country has long used a dual currency system with the riel and dollar coexisting for nearly three decades. Authorities call the arrangement pragmatic and plan gradual changes.
Measures now in effect remove small-denomination US bills from circulation. Merchants have been instructed to reject $1, $2, and $5 notes when offered for payment.
ATMs will dispense only $100 bills going forward. That change makes small-dollar change scarce and forces shoppers to use the riel for low-value purchases.
Everyday items like street food or bottled water will be paid in riel, while larger expenses remain in dollars (Ed. note: officials describe this as a bottom-up approach). Hotels, cabs, and business transactions will still use the US dollar.
Authorities expect the policy to raise riel liquidity through increased small-value use. Officials frame the shift as limited and gradual, not a wholesale removal of the US dollar.
