Phnom Penh: Samdech Techo Hun Sen, Prime Minister of CambodiaAnnounces to the people that US $ 1, $ 2 and $ 5 bills are still common in Cambodia. Samdech Techo's announcement came after people, as well as some businessmen, refused to take 1, 2 and 5 $.

On May 29, Samdech Techo Hun Sen affirmed


$ 1, $ 2 and $ 5 denominations are still common in Cambodia

According to the official Facebook post, Samdech Techo said, “I would like to point out to the people throughout the country. In addition to the announcement of the National Bank of Cambodia on the afternoon of May 28, 2020, it is clear that the US dollar US $ 1, $ 2, and $ 5 are still widely available on the market, not banned as rumored. The moniker. In the event of a halt to the circulation of the US currency above, there is an official announcement from the National Bank of Cambodia. Not at all. Citizens continue to spend freely on US $ ($ 1, $ 2, $ 5) with no water cut or cut. That's all. Best wishes to all our compatriots and good luck in avoiding the infection of Kov-19. ”

Please note that the National Bank of Cambodia this afternoon issued a press release on the Meeting on the Challenges of US Dollar. US types 1 $ 2 $ and $ 5 in Cambodia.

The National Bank of Cambodia has publicly announced that US $ 1, $ 2, and $ 5 bills are still available on the unregulated marketplace. But in the near future, the National Bank of Cambodia will only suspend receiving US dollars from banks and financial institutions.

It is found that in both warehouses, banks and the National Bank of Cambodia have accumulated deposits of US $ 1, $ 2, $ 5 and $ 5. This indicates that the demand for these notes was low in the market, and the meeting agreed to introduce the following measures:

1) The National Bank of Cambodia will provide 3 months from 1st June 2020 to 31st August 2020 Finance to bring US $ 1, $ 2, $ 5 USD to the National Bank of Cambodia for free shipping

2) After 31st August 2020, the National Bank of Cambodia will transfer the cost of shipping overseas on US $ 1 $ 2 $. And $ 5 to the bank and financial institution. There is no fee for receiving US $ 10 currency

3) The National Bank of Cambodia will continue to discuss with banks and financial institutions to come up with an appropriate time to suspend the receipt of the US dollar. Totally small from banking and financial institutions.

According to the press release, the meeting discussed and agreed on some of the following challenges:

On policy view:

– In a situation where the world is facing a global health crisis and is entering a recession, strengthening the independence of monetary policy Will contribute to more efficient economic growth. In this direction, Cambodia needs to promote a wider use of the riel, starting with spending on smaller operations. Therefore, keeping the circulation of the US dollar smaller is one of the obstacles to promoting the use of the riel

Over the last six months, the riel, as well as the regional currency, has depreciated significantly against the US dollar. For countries in the region, their depreciation is mainly due to a decline in exports and capital outflows. Whereas in Cambodia, the depreciation of the riel was due to the depreciation of the riel (mainly caused by the slowdown in domestic economic activity; Declining demand for the riel for taxation, etc.). The depreciation of the riel against the US dollar has a negative impact on farmers in the riel. Therefore, to stimulate the demand for the riel in the economy, especially for smaller transactions, the use of smaller US dollars should be appropriate Replaced in Riel.

On the technical aspects:

– The National Bank of Cambodia is the only institution that has the authority to ship foreign currency into Cambodia. Despite its role, the National Bank of Cambodia has streamlined the transfer of new US dollars from the US Federal Reserve. Particularly for the small and old US dollar bills, the National Bank of Cambodia has a hard time controlling the quality, since the export of these notes is required. Labor costs and high budgets are different from the riel that the National Bank of Cambodia can cut and destroy with the new printing paper.
In addition, the number of foreign correspondent banks that have facilitated the adoption of the US dollar has become less and less restrictive. Also receive small US dollar bills, though offering higher fees. This is even more difficult in the context of the worldwide worldwide spread of CAV-19, which causes flights to and from Cambodia. The least.

It is found that in both warehouses, banks and financial institutions and the National Bank of Cambodia accumulated US $ 1, $ 2, $ 5 and 5 US dollars. $ This indicates that the demand for these notes is low in the market, and the meeting has approved the following measures:

– The National Bank of Cambodia will provide 3 months from 1st June 2020 to 31st August 2020 To bring US $ 1, $ 2, $ 5 USD to US bank for free international shipping.

– After 31st August 2020, the National Bank of Cambodia will transfer the cost of shipping overseas on US $ 1 $ 2 $. And $ 5 to the bank and financial institution. There is no fee for receiving US $ 10 bills

– The National Bank of Cambodia will continue to discuss with banks and financial institutions to come up with an appropriate time to suspend the receipt of the US dollar Totally small from banking and financial institutions.

Also present at the meeting were representatives of some retailers. The National Bank of Cambodia would also like to point out that the implementation of the above measures does not imply a ban on the circulation of these smaller US dollars On the market

By: Kolab