Dollarisation level still over 80% in Cambodia

Despite the continued efforts by the National Bank of Cambodia (NBC) to promote the use of riel (KHR), the level of dollarisation in the country still remained over 80%, according to the Financial Stability Report 2021, released by the central bank recently.

This level of dollarisation limits the NBC’s role in influencing money supply and interest rates in the country, the report said. “A more riel-based economy will allow the NBC to effectively implement monitory policy in response to economic shocks. 

Therefore, NBC has put efforts into gradually de-dollarising the economy through the facilitation of the KHR usage, regulation setting that aims to boost loans in KHR and public awareness-raising of the role of the national currency in strengthening economic resilience,” the report said.“These efforts have contributed to gradually decreasing financial dollarisation measured by the ratios of foreign currency deposits to total deposits,” the report added.

https://www.khmertimeskh.com/501098527/dollarisation-level-rules-over-80/