KHR gains 1.5% against dollar in 2025
KHR gains 1.5% against dollar in 2025
Cambodia’s national currency, the riel (KHR), recorded a modest but notable appreciation in 2025, strengthening by 1.5 percent to an average exchange rate of 4,011 against the US dollar. This was revealed in the Financial Stability Review 2025 report released by the National Bank of Cambodia (NBC) on Saturday.
The gain reflects growing domestic confidence in the local currency, supported by increased use of riel in everyday transactions and a steady rise in agricultural and industrial output, a key pillar of the country’s economy.
Financial authorities have also encouraged the transition toward digital payments, with electronic transactions denominated in riel expanding rapidly across urban and rural areas.
Analysts note that these structural shifts have gradually reduced Cambodia’s reliance on the US dollar, long dominant in its highly dollarised economy. The trend aligns with broader policy efforts to promote monetary sovereignty and strengthen the effectiveness of domestic financial policy.
Externally, global currency movements also played a role. The US Dollar Index, which tracks the dollar against a basket of major currencies, declined by 5.7 percent in 2025, falling to 121 in December. The drop was attributed to easing US interest rates, rising unemployment, and ongoing geopolitical tensions, which weakened investor confidence in the dollar.
Together, domestic resilience and global dollar softness contributed to the riel’s appreciation, signalling cautious progress toward greater currency stability in Cambodia.
- 08:08 31/03/2026
