PM asks pvt sector to scale up Riel usage
PM asks pvt sector to scale up Riel usage
Prime Minister Hun Manet Friday asked the private sector to increase the use of Riel in their day-to-day transactions to strengthen the national currency and boost the domestic economy.
Addressing a solidarity dinner at the Cambodia Oknha Association and the Housing Development Association of Cambodia in Phnom Penh, Mr Hun Manet made a strong appeal saying, “I encourage you to use our riel more because we spend riel without any problems. On the other hand, the use of riel confirms our identity. Today, all business people are here, so, please join us to use our riel as much as possible.”
The move aims to reduce reliance on the US dollar, which has long been the dominant currency in the Kingdom.
The National Bank of Cambodia has beefed up efforts to improve Riel’s liquidity and availability in the market.
Cambodia has seen a big jump in the use of the local currency Riel over the past two decades, according to the National Bank of Cambodia (NBC).
With the objective of de-dollarizing the economy based on the market mechanism, NBC has implemented various policy measures to promote the Riel since the early 2000s.
The government is committed to fostering a robust Riel-based economy. By encouraging businesses to adopt the Riel for salaries, pricing and other financial dealings, the government hopes to stimulate domestic consumption and investment.
The amount of Riel in circulation has increased from 0.85 trillion Riel (about $211 million) 20 years ago to 14.5 trillion Riel (about $3.51 billion) by the end of 2023.
The US dollars flooded into the Cambodian economy through the intervention of the United Nations Transitional Authority in Cambodia (UNTAC) in their peace operations in the country in 1993, during which UNTAC spent $1.7 billion, equivalent to about 75 percent of Cambodia’s gross domestic product (GDP) at that time, mostly on rent and local services.
Lim Heng, Vice President of the Cambodia Chamber of Commerce, applauded the move saying citizens, business owners and the private sector can contribute to using the riel to pay for goods and daily expenses to promote the national riel to promote the national economy.
“If factories, enterprises and businesses in Cambodia make payroll in riel, the growth of riel uses will increase significantly,” Heng said.
