Cambodia & Economy: Acceptance of old or worn US banknotes on a nationwide scale may be imminent

Following the completion of the pilot assessment conducted by the National Bank of Cambodia (NBC) in Siem Reap province, the acceptance of US banknotes with slight cuts or tears may be permitted throughout Cambodia. This information has been confirmed by Prime Minister Hun Manet.

The policy has been in effect in Siem Reap since 22 July 2024, following the NBC's mandate that all commercial bank branches in the area accept old or worn US dollars without charging any fees.

While this measure is currently only applicable in Siem Reap, some business owners from other provinces have questioned why it is limited to that area. In response to these concerns, the PM clarified that the Siem Reap pilot scheme may pave the way for a wider roll-out, stating:

"The implementation in Siem Reap is a pilot step for the NBC to evaluate and develop a specific plan before announcing this new policy across the country in the near future."

In the meantime, Cambodia is promoting the use of the riel, particularly by replacing small dollar denominations such as the $1 and $5 with the objective of collecting these banknotes and sending them abroad.

The NBC report indicates that in the first six months of 2024, the export of US dollars increased by 66% compared to the same period last year, while the import of US dollars decreased by 100%.

The report also indicates a 37.4% increase in the collection of small US bills at NBC headquarters and its branches nationwide, while the export of such notes abroad rose to 55.2% during the same period.