New banknotes signal revival of national pride

[geovalin]

Central Bank aims for greater circulation of banknotes depicting cultural and historical events that resonate with all Cambodians.

 

In his office at the National Bank of Cambodia, Mr. Heng Bomakara recalls the early stages of the nation’s currency with fondness. He still remembers a time when coins were commonplace. First minted in aluminum and then later in steel, these coins are now a rare sight in Cambodia but on e-bay they are auctioned to global collectors every day. “When I was younger the highest denomination [I can remember] was maybe 500 or 1,000 riel,” recalls the NBC’s Director of Licensing.
 

Now Mr. Heng is part of the team encouraging Cambodians to use their national currency more frequently. He and his colleagues are well aware of the unique challenges they face but are gradually gaining ground. Their long-term goal is to promote monetary independence by creating a greater feeling of trust and pride in the riel, which had been banned by the Khmer Rouge in 1975. The riel was not reintroduced until March 20, 1980. Cambodia had been reduced to a barter economy – payments were most often made in rice or gold – and suspicion about banknotes lingered. A second challenge arrived in 1992 with the United Nations Transitional Authority in Cambodia, which brought much needed aid and security as well as a flood of US dollars that nearly drowned the riel.
 

The Kingdom’s economy still remains heavily dollarized; slightly more than 80 percent of all deposits in financial institutions are in US dollars, while a “psychological attachment” to a foreign currency has taken root. The NBC is taking a gradual and persuasive approach to increasing the use of the riel. Officials stress that they are not attempting to de-dollarize the economy. Rather they are promoting the use of the riel by ensuring riel banknotes are emblazoned with images that resonate with Cambodians and foster solidarity. Their efforts are supported by the stability of riel’s value and the fact that most people in rural areas continue to use the currency.

 

read more http://www.khmertimeskh.com/news/36156/new-banknotes-signal-revival-of-national-pride/

 

 

-- © Copyright Khmer Times 08/03

[Yme]

Hmm, Khmer times 'sponsored content' - probably a tag they should put on every story given recent disclosures. I note that at least one online news source is now has a disclaimer at the bottom of their Cambodia news roundups stating it "will no longer cite The Khmer Times due to poor credibility, probity, and governance."