Inside Cambodia’s Currency: Why the Riel Still Matters in a Dollarized Market

The Cambodian riel is still very important in daily life. US dollars are used a lot, but the riel is still needed. The National Bank of Cambodia says 15% of daily transactions use the riel. Electronic riel payments grew almost twice as fast in early 2024 than last year. KHR Currency is now more stable. This helps more people trust and use it. Watching exchange rates is now very important. Changes can affect prices, businesses, and how people feel about the economy in Cambodia.

Highlights

• The Cambodian riel is still important for daily life. Many people use the US dollar, but the riel is used for small buys and in the countryside. The exchange rate between the US dollar and riel has not changed much in 2025. This helps businesses and families make plans without worry. Government rules help the riel by making people use it for prices, loans, and digital payments. This makes the local economy stronger. The riel stands for Cambodia’s culture and history. It helps people feel proud and close to their country. Digital payment systems like Bakong are growing quickly. They make it easy for more Cambodians to use the riel in a safe and simple way.

KHR Currency Trends 2025

USD/KHR Rate Overview

The USD/KHR exchange rate changed a little in 2025. On July 28, 2025, the official rate was 4,006.66 KHR for one US dollar. This was a bit lower than earlier in July. The rate stayed between 4,006 and 4,012 KHR per USD in late July. It did not move much each day.

The KHR Currency market has been calm. There were only small changes. The National Bank of Cambodia watches the rate closely. They help keep the currency steady.

Yearly and Quarterly Changes

In 2025, the USD/KHR rate went down a little. The yearly change was -1.90%. This means the riel got a bit stronger. On July 29, 2025, the daily rate went up by 0.37%. In the last six months, the rate dropped by about 0.37%. Monthly averages in early 2025 stayed near 4,000 KHR per USD. There were only small changes up or down.

Forecasts for 2025

Experts think the USD/KHR rate will stay steady in 2025. They expect a slow rise. The rate may reach about 4,028 KHR per USD in Q3. By the end of the year, it could be 4,051 KHR per USD. By mid-2026, it might go up to 4,097 KHR per USD. This means the riel could get a little weaker, but not by much.

Technical analysis tools show a bearish trend for the USD/KHR pair. Most experts say the KHR Currency will stay steady. Cambodia’s economy is growing well. Inflation is expected to be about 2% in 2025. The National Bank of Cambodia wants to keep the rate steady. This helps both local and foreign investors. There are some risks, like private debt and changes in the world economy. But Cambodia has strong foreign reserves and good policies. This helps keep the riel stable.

Exchange Rate Drivers

Policy and Economy

Government rules are very important for Cambodia’s exchange rate. The National Bank of Cambodia works hard to keep the Riel steady. When prices go up or world markets get shaky, the NBC acts fast. They use things like open market operations to control how much money is in the country. The government also wants to sell local currency bonds. These bonds let businesses borrow Riel instead of dollars. This helps Cambodia use less foreign money. It also gives the NBC more power over money rules.

Cambodia’s economy is growing in many areas. Tourism, factories, and farming are doing well. Selling more kinds of goods, especially with RCEP, helps the economy grow. These things help stop prices from rising too fast. They also help keep the Riel’s value steady. The government works to make the Riel stronger and control borrowing costs. This shows they want to protect what the Riel can buy.

Regional Factors

Cambodia’s exchange rate is not alone. Changes in nearby countries can change the Riel’s value. For example, if the Thai baht or Vietnamese dong changes, trade costs can go up or down. This can make the Riel’s exchange rate move. Trade deals in the region also matter. They help Cambodia find new buyers and bring in more money from other countries.

Big world events can also change the Riel. Things like US money rules or changes in prices for goods can have an effect. Investors pay close attention to these things. The NBC watches what happens in the region and acts fast if needed. By staying ready, Cambodia can handle risks and keep the Riel steady.

Riel’s Role in the Market

KHR and Dollar Use

Businesses in Cambodia think hard about which money to use. In March 2023, the government made a rule. All shops and services must show prices in riel. This rule helps people use the local money more. The National Bank of Cambodia works to keep the KHR Currency safe and trusted. Banks have to give out more loans in riel. This makes people use riel more often.

People use both riel and US dollars, but for different things.

• USD is used for big things, imports, and in big cities.

• The riel is for small things, markets, tuk tuk rides, and the countryside.

• Many shops do not take ripped US dollar bills. They are hard to change.

• Small US dollar bills are hard to find now, so people use riel more.

• ATMs give both kinds of money, but big US bills are not good for small buys.

• Cards work in fancy or tourist places, but cash is best in small shops.

A survey in Phnom Penh shows why businesses pick a currency. They look at the price, the market, and if goods are local or from other countries. Private jobs and NGOs pay in dollars. Government workers get paid in riel. This mix shows people pick money based on the job and place.

National Identity

The riel is not just money. It stands for Cambodia’s culture and history. Pictures on the riel, like Angkor Wat and kings, remind people of their country. The riel’s story shows Cambodia’s past, from being ruled by others, to war, and then to peace.

Many years of trouble made people stop trusting their own money. The Khmer Rouge even stopped people from using money. People started using US dollars to feel safe. Now, the government has “Riel Day” and wants prices shown in riel. This helps people trust and feel proud of their money again.

• The riel’s look has changed as politics and culture changed.

• Using dollars helped after war but took away some control.

• Leaders want to use more riel to make people proud and strong.

The slow return of the riel shows Cambodia is getting better. As the country grows, people trust the riel more. The riel is now a bigger part of Cambodia’s identity.

Impact on Business and Consumers

Trade and Tourism

Trade and tourism are very important for Cambodia’s economy. Big businesses use US dollars to pay for imports. Small shops and markets like to use the riel every day. Tourists see prices in both riel and US dollars. This helps them know what things cost and makes shopping easier. Hotels, restaurants, and travel agencies in cities take both kinds of money. In the countryside, tourists use riel more, especially for small things like food or rides.

If the riel does not change much, businesses can plan better. They do not worry about prices going up fast. This helps keep tourists happy and trade simple. A steady exchange rate lets sellers and buyers set fair prices. This makes Cambodia a good place for business and travel.

Financial Inclusion

More people in Cambodia can use banks now, even in the countryside. Over 65% of people use Bakong, a digital payment system. Bakong connects to bank accounts and works with the riel. The National Bank of Cambodia wants more people to use Bakong and the riel.

Wing Bank gives loans in riel to farmers. More than 10% of its loans are in riel, as the National Bank asks. Half of Wing Bank’s accounts use riel, so people in rural areas trust it. Bakong lets people send money with their phones, even without a bank account. This helps families in far places join the digital world.

Studies show 92% of riel use in the provinces is for daily needs. People spend it on food, water, power, and medicine. The Cambodia Microfinance Association and the National Bank teach people about the riel and digital payments. These programs help Cambodians get loans, save money, and pay for things in their own currency.

KHR Currency Outlook

Expert Views

Financial experts in Cambodia see good and bad things for the riel. They know the U.S. dollar is used much more than the riel. About 83% of all transactions use dollars. Over 90% of bank deposits are in dollars too. Using dollars has helped keep prices steady. It brings in money from other countries. It also protects Cambodia from big price jumps or sudden changes in money value. But there are some problems:

• Cambodia cannot fully control its own economy or money rules.

• The country does not earn profit from making its own money.

• People may feel less proud or in charge when another country’s money is used so much.

Chea Serey, who leads Cambodia’s central bank, wants people to use more riel. She and other leaders teach people about the riel. They do not force strict rules. This helps people not get scared or move their money away. Most experts think the riel will stay strong if changes are slow and people trust it more.

Future Role

The future of the KHR Currency depends on local and world events. The National Bank of Cambodia uses interest rates to guide loans and spending. If they raise rates, more foreign investors may come. This can make the riel stronger. If they lower rates, people may spend more, but prices could rise. How people feel about risk and the market also changes the riel’s value.

World events matter a lot too. Higher fuel and food prices make inflation go up. This makes it harder for the riel to keep its value. More people use the U.S. dollar now, so the riel is used less. Many Cambodians worry about rising prices. This makes them trust the riel less. The central bank must be careful with its rules to help. Cambodia’s economy is getting better, but there are still problems from the world. The riel’s future will depend on smart rules, people’s trust, and how well Cambodia can handle changes.

Cambodia’s Riel is still very important in 2025. It helps keep the economy steady and shows national pride. The exchange rate does not change much. This makes it easier for people and businesses to plan. Policymakers and shoppers can use new facts to make good choices by:

• Trusting strong facts, not just stories.

• Watching for changes in the market and rules.

• Looking at both numbers and opinions.

Businesses can do better by:

1. Reading news about the economy often.

2. Keeping money in more than one currency.

3. Using tools to lower risks.

FAQ

What is the main reason Cambodia uses both the riel and the US dollar?

Cambodia uses both because the US dollar is trusted. The riel is important for daily life and shows national pride. People like using both, depending on where they are. Markets and banks may use different money.

How does the exchange rate affect daily life in Cambodia?

The exchange rate changes what things cost. If the riel gets weaker, imports cost more. People check rates before they spend money. When rates stay steady, prices do not jump fast. This helps families and businesses plan.

Can tourists use US dollars everywhere in Cambodia?

Tourist places take US dollars most of the time. In the countryside, people use the riel more. Small shops and markets give change in riel. Tourists should bring both kinds of money to make shopping easy.

Why does the National Bank of Cambodia want more riel use?

Is digital payment with riel growing in Cambodia?

Yes, more people use digital riel payments now. Many use apps like Bakong to buy things every day. Digital payments help people in cities and villages use the riel safely.