Use Riel to protect economic sovereignty, Hun Sen says

Use Riel to protect economic sovereignty, Hun Sen says

Mr Hun Sen’s message signals stronger advocacy for monetary sovereignty and reduced dependency on the Thai Baht — an issue with direct implications for cross-border trade, price stability, and economic resilience.

Acting Head of State and Senate President Hun Sen has called on Cambodians to increase the use of the Riel in daily transactions, warning that reliance on the Thai Baht poses both economic and political risks.

He made the remarks on Wednesday after receiving reports that residents in Poipet, Banteay Meanchey province, had begun exchanging Thai Baht for Riel just two hours after he posted a message on October 6.

Mr Hun Sen welcomed the swift response, saying that using the national currency in Cambodia is crucial to preventing financial losses and safeguarding the country from external economic vulnerabilities. “It is a good thing that Cambodian citizens are using the Riel on their own soil, helping to avoid financial losses and preventing the Riel from becoming a national vulnerability when foreign currencies are used as political tools,” he stated.

Highlighted the growing risks faced by Cambodians working in Thailand, and noting that some are currently unable to withdraw funds from Thai banks, Mr Hun Sen said, “This situation reveals how the Thai Baht is harming Cambodians working and living in Thailand. In the future, the Baht will also harm Cambodians inside Cambodia if they continue to spend and save in Baht.”

He appealed to currency exchange operators to trade at market rates and refrain from exploiting fluctuations for profit, which can distort the value of the Riel and affect ordinary citizens. He further urged businesses and individuals to stop quoting wages, product prices, and service charges in Thai Baht, calling instead for transactions to be conducted in Riel or, if necessary, US dollars—preferably the former.

“If you truly love your country, keep banknotes bearing the image of our King Father, Queen Mother, and His Majesty the King in your wallets, pockets, or purses, rather than the banknotes of a foreign king who sees us as enemies and treats us with contempt,” he said.

Mr Hun Sen also called for stricter enforcement against the smuggling of Thai goods, particularly while the border remains closed, arguing that such practices weaken national self-reliance and allow neighbouring countries to look down on Cambodia.

While no immediate legal measures were announced, Mr Hun Sen’s message signals stronger advocacy for monetary sovereignty and reduced dependency on the Thai Baht—an issue with direct implications for cross-border trade, price stability, and economic resilience.

The Association of Banks in Cambodia (ABC) has voiced strong support for Acting Head of State and Senate President, Hun Sen’s recent call for increased use of the Cambodian riel in daily transactions, stressing that greater reliance on the national currency would bring economic, financial, and political benefits.

Sok Chan, Spokesman for ABC, told Khmer Times that promoting the use of the riel would help strengthen Cambodia’s economic sovereignty and enhance national ownership over its financial system.

“The Association of Banks in Cambodia believes that the use of the national currency has many benefits for our national economy. The more we use the riel, the more we can strengthen our sovereignty and increase our ownership of the national economy,” Chan said.

He explained that Cambodia’s economy is still heavily dollarised, with foreign currencies—particularly the US dollar — accounting for more than 85 percent of circulation, while the riel makes up only about 12 to 15 percent. Reducing this imbalance would provide the National Bank of Cambodia (NBC) with more effective monetary policy tools, such as the ability to adjust interest rates, while also generating additional fiscal revenue through the issuance of riel banknotes.

Chan also highlighted the practical measures already in place to support riel usage along the border areas. Banks and financial institutions operating along the Thai border currently offer regular currency exchange services between the baht, riel and US dollars, enabling traders and local residents to conduct transactions smoothly.

“Banking institutions serving along the Thai border accept regular currency exchange from baht to riel or from baht to dollars. They facilitate transactions for traders and citizens, and the exchange rate is based on the official rate of the National Bank of Cambodia,” he said.

He added that while digital payments in Thai baht are still accepted in some areas, the banking sector is committed to supporting the government’s efforts to encourage broader use of the riel.

ABC’s statement comes after Hun Sen urged Cambodians to rely more on their national currency to safeguard economic stability and reduce dependence on foreign currencies, particularly in border provinces where the use of the Thai baht is widespread.

NBC in July also issued an official directive instructing all banking and financial institutions, as well as licensed currency exchangers, to offer Thai baht exchange services at market rates to support Cambodian citizens returning from Thailand.

In the notice released on July 27, 2025, NBC stated: “Currently, ACLEDA Bank branches have complied with this notice, and other banking and financial institutions and currency exchangers will continue to implement this exchange to protect the interests of citizens.”

The directive comes amid the ongoing repatriation of Cambodian migrant workers from Thailand, many of whom are returning through checkpoints such as the Daung International Border Gate in Kamrieng District, Battambang province.

NBC further urged all relevant stakeholders to cooperate in implementing the baht-to-riel exchange in a way that reflects market principles and promotes national solidarity.

“The National Bank of Cambodia calls on all banking and financial institutions and currency exchangers to cooperate in exchanging Thai baht to Khmer riel at market rates in a spirit of solidarity and mutual support during this situation,” the statement added.

The measure is expected to ease the financial burden of returning workers by ensuring fair and transparent currency exchange amid the evolving border developments.

khmertimeskh