Cambodian Monetary Unit History and Use

The Cambodian monetary unit has a rich history, and understanding it can help you navigate everyday transactions in Cambodia.

The Riel, Cambodia's official currency, was first introduced in 1953 as a replacement for the French Indochinese piastre.

In 1975, the Khmer Rouge took control and abolished the Riel, introducing the US dollar as the official currency.

The Riel was reintroduced in 1980, but it struggled to gain traction and was eventually replaced by the US dollar as the dominant currency in 1993.

Curious to learn more? Check out: Currency Code of United Kingdom

The Cambodian monetary unit has a rich history. The franc was the currency of Cambodia between 1875 and 1885.

It was equal to the French franc and was similarly subdivided into 100 centimes. This was a significant change from the tical, which it replaced.

The riel, on the other hand, is the official currency of Cambodia and has been in circulation since 1953. Its symbol is ៛.

The riel has two sub-units: the sen, which is one-hundredth of a riel, and the kak, which is one-tenth of a riel. As of December 2020, 1 U.S. dollar is worth roughly 4,000 KHR.

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The Riel has been the official currency of Cambodia since 1980, replacing the US dollar as the national currency.

The Riel was introduced to stabilize the economy after the Khmer Rouge's policies led to hyperinflation.

In 1985, the Riel was pegged to the US dollar at a fixed rate of 1:5, but this peg was abandoned in 1993.

The current exchange rate is around 4,000 Riel to 1 US dollar, although this can fluctuate.

For another approach, see: India Currency Unit

The first riel was introduced in 1953, with notes dual-denominated in piastre and riel, where the riel was at par with the piastre. This was part of a larger arrangement with the đồng in South Vietnam and the kip in Laos.

The riel was initially subdivided into 100 centimes, but this changed to 100 sen in 1959. This change in subdivision didn't affect the overall value of the currency.

The first riel banknotes were also denominated in piastres. This was a common practice at the time, where multiple currencies were used in conjunction with each other.

Here are the first five issues of riel banknotes:

Coins were also introduced during this time, with aluminum coins minted in 1953. These coins were the same size as the corresponding coins of Laos and South Vietnam, but without the holes in the Lao coins.

A 1 riel coin was planned to be issued in 1970, but was not released.

The second riel was introduced in 1980 after the Vietnamese attacked the Khmer Rouge in 1978. It initially had a value of 4 riels to 1 U.S. dollar.

The riel was subdivided into 10 kaks or 100 sens, but the populace preferred using U.S. dollars due to their stability. This was largely due to the United Nations' humanitarian aid to Cambodia in U.S. dollars.

The supply of riels grew rapidly in the early 1990s, causing the riel to devalue from 4 riels to 1 dollar in 1980 to around 4000 KHR/USD in the 2000s and 4100 KHR/USD in the 2020s.

Here's a list of the different issues of the second riel:

The Cambodian riel has undergone several changes in its denominations over the years. The first riel was introduced in 1953 and was initially subdivided into 100 centimes.

The first riel banknotes were issued in 1955-56 and featured denominations of 1 riel, 5 riels, 10 riels, and 50 riels.

A second issue of riel banknotes was introduced in 1956, featuring denominations of 1 riel, 20 riels, 50 riels, 100 riels, and 500 riels.

The third issue of riel banknotes was also introduced in 1956, with denominations of 100 riels and 500 riels.

A fourth issue of riel banknotes was introduced in 1963, featuring denominations of 5 riels, 10 riels, and 100 riels.

The fifth and final issue of riel banknotes was introduced in 1972, but some denominations were unissued. The denominations that were issued included 100 riels, 500 riels, 1,000 riels, and 5,000 riels.

Here are the details of the regional issue of riel banknotes introduced in 1993:

The first coins of the Cambodian riel were 5 sen pieces, minted in 1979 and made of aluminum.

In rural areas, the riel is used for virtually all purchases, large and small, but the United States dollar is also widely accepted, particularly in urban Cambodia and tourist areas.

The dollarization of the economy started in the 1980s and continued through the early 1990s, with the United Nations contributing humanitarian aid and refugees sending remittances home.

The exchange rate is fixed at 4,000 KHR/US$ for retail trade, with riel paid out for change in fractions of a dollar.

Cambodia's economy is 90% dollarized, with foreign currencies, particularly U.S. dollars, being more popular in cities and international destinations. Businesses in cities often list prices in USD.

Travelers can draw cash from ATMs in both USD and Cambodian riel, but they typically acquire riel in change from transactions and try not to keep too much money in the Cambodian currency.

Here are some common currencies used in Cambodia:

The National Bank of Cambodia fixes the exchange rate, but only legitimate banks may legally perform exchange services, and they bear sole responsibility for reporting these transactions to the government.

In rural areas, the riel is used for virtually all purchases, large and small. In these areas, the riel is the primary currency used.

The United States dollar is also widely accepted, particularly in urban Cambodia and tourist areas. This is due in part to the use of the dollar in humanitarian aid and remittances from refugees.

The Thai baht is also accepted in areas near the Thai border. This is a result of the country's proximity to Thailand and the economic ties between the two nations.

Dollarization started in the 1980s and continued through the early 1990s, eroding confidence in the riel. High inflation rates, such as 177% per year, contributed to this decline.

The United Nations Transitional Authority in Cambodia stationed 22,000 personnel throughout the country, whose spending represented a significant portion of the economy. This had a lasting impact on the use of the dollar in Cambodia.

For your interest: 1 Usd to Riel

The major cities and tourist areas heavily use the U.S. dollar, with it being dispensed in ATMs and accepted in virtually all purchases. USD quotations are also required for significant financial transactions.

The exchange rate is 4,000 KHR/US$ for retail trade, with riel paid out for change in fractions of a dollar. This exchange rate is widely known and used throughout the country.

In June 2020, the National Bank of Cambodia announced the phaseout of small U.S. dollar banknotes, including the $1, $2, and $5 denominations.

In rural areas of Cambodia, the riel is the primary currency in use. However, it's often difficult to break a $20 bill, and travelers may find it hard to exchange old or torn US dollars.

Businesses in cities and international destinations typically list prices in USD. This is because the economy is 90% dollarized, making the US dollar the more popular choice.

You can withdraw both USD and Cambodian riel from ATMs in Cambodia, but foreign travelers will only be able to draw from their foreign accounts in USD.

Foreign currencies like the Thai baht and Vietnamese dong are commonly used near the borders with Thailand and Vietnam, respectively.

Travelers should be aware that the Cambodian government fixes the exchange rate, and only legitimate banks can perform exchange services.

For another approach, see: Usd to Cambodian Riel

The Cambodian tical was used as currency in Cambodia, Siam, and Laos before 1875.

It was replaced in Cambodia by the Cambodian franc in 1875 due to French intervention in the region.

The tical was a widely used currency in the region before its replacement.

Worth a look: Currency Used in United Kingdom

The Cambodian tical was the currency of Cambodia as well as Siam and Laos prior to 1875. It was replaced by the Cambodian franc in 1875 due to French intervention in the region. The tical was used in multiple countries, a shared currency among nations. This highlights the complexity of currency systems in the past.

The Cambodian Franc was the currency of Cambodia between 1875 and 1885. It was equal to the French franc.

It was similarly subdivided into 100 centimes. The franc replaced the tical and was later replaced by the piastre.