Among other countries, Cambodia is a nation on which being popular for using a Dollar note among people without any coercion or legal restriction due to people are hard to trust in their national currency, Riel. The reason why people do not trust in this national currency because of the instability of macro-economics and an excessive high inflation which is not under control.
The experience of people in period of during the genocide Khmer rouge regime, spending and stock exchange were prohibited completely. There had much money been saved through hard work of people and all of those money has been futile over time. In 1980’s after Khmer rouge failed, the Riel national note was placed to circulate again but people still be not convinced for making value it much more than gold, rice or foreign currency for example a note of Vietnam or Thailand and United States.
The macro-economic instability and inflation in 1980’s and 1990’s made people hard to believe in the national currency or attract attention of its popularity for using amidst the inflow of Dollar currency through the United Nations Transitional Authorities in Cambodia until now within the inflows of billions of Dollars of aid and donation for development projects and other business investment and tourism which is so popular for circulating in the market. Spending of Dollar in a current Cambodia is noticed that in high trends even this country has macro-economic stability.
The another reason why people do not trust in a national currency in light of this nation lacks of independence of the central bank and a government affiliation. A pressing concern in the future, somehow and someday they may be afraid that the national bank which is under control of the state would print much Riel note in order to respond the government’s need ensuing trigger a drastic inflation problem of currency so the national currency shall be useless. However, for the last recent one decade the people have been using much money of Riel but this national note looks worthy cheaper than Dollar.
Presently, they notice that Cambodia categorized two types of economy, urban economy which compromised by Dollar influence because of foreign investment, busting tourism activities, textile industry increase and international aid or donation of community development programs. Another one is called rural economy on which majority of farmers are spending Riel currency due to it is on the ground of agricultural pivot base.
Because of such urban economy is weighed in therefore Dollar note is still prominent and dominant over the national currency.
Read more about Cambodians Spend Much But Only For The Sake of Foreign Economic Benefits
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