Old dollar bills to be accepted nationwide, NBC says
Old dollar bills to be accepted nationwide, NBC says
The National Bank of Cambodia (NBC) has announced that all old, slightly torn or stained US dollar banknotes are now accepted nationwide without any restriction or extra fees on transactions.
The move aimed to ease the financial burden of the public and also as a relief to many Cambodians and foreign tourists who have so far faced difficulties in using worn-out dollar bills.
In the announcement on August 2, the central bank strictly prohibited all banking and financial institutions including moneychangers from charging additional fees for handling torn or stained US dollar banknotes.
“Required to accept old or stained US banknotes with no fee from customers, unless those banknotes are fake or unrecognizable,” the central bank said.
Fake US banknotes are to be withdrawn without any compensation and to be sent to NBC, read the announcement.
The decision comes after Prime Minister Hun Manet announced last Friday that the exchange of old or stained US bills would be implemented across the country, expanding from Siem Reap province.
After assessing that it is manageable in Siem Reap province, the government decided to facilitate the exchange of old, stained and slightly torn dollars across the country without extra fee, he said.
NBC stated in the announcement that it does not have the authority to issue dollar bills and has no right to burn old dollar bills and replace them with new ones. So, the central bank has to pay for both the transfer of old dollar notes to US banks and also for receiving new dollar notes back to Cambodia.
“The National Bank of Cambodia encourages all people to participate in using Khmer Riel more for the development of the national economy,” read the announcement.
Old dollar bills are required to be transferred by NBC to the US Federal Reserve. About $11 million worth of old dollar notes have so far been transferred to the US at a cost of nearly $350,000 to cover transport and insurance expenses.
