A Riel Headache: Can Cambodia End the Dollar's Reign?

By Sam Campbell
Economics Today

The Great Recession has brought currency issues—especially the threat of a Euro crisis—to the fore. But for dollarized countries, currency headaches have long been part of the landscape.

With an estimated 90 percent share of money in circulation in Cambodia denominated in dollars, the kingdom is heavily dollarized.

The US dollar is the main alternative currency across Cambodia, Laos and Vietnam, though only in Cambodia is the greenback uncontested top dog. The Cambodian central bank has repeatedly intervened to defend the riel, raising the question of whether Cambodia should try to de-dollarize its economy. For full article, click Economics Today.

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