Economy & Money: Cambodia celebrates the 45th anniversary of the reintroduction of the Riel

The National Assembly (NA), the Senate and the National Bank of Cambodia (NBC) organised a seminar to commemorate the 45th anniversary of the reintroduction of the Riel (20 March 1980 - 20 March 2025), highlighting its vital role in strengthening national identity and promoting economic stability.

Seminar

The seminar, called ‘Riel, the Bakong system and KHQR’, was chaired by H.E. Kitti Sethapundit Cheam Yeap, First Vice-President of the National Assembly, and attended by senior officials from the National Assembly, the Senate and the National Library.

The event was held at the DA Palace in Phnom Penh on 20 March with the aim of raising national awareness and encouraging the participation of ministries, institutions and the public, particularly the legislature, in support of the Riel.

‘This gathering is an important and significant opportunity to celebrate the 45th anniversary of the reintroduction of the Riel in order to promote the development and resilience of the Cambodian economy,’ said H.E. Kitti Sethapundit Cheam Yeap.

He also praised the efforts of the BNC through its initiatives to promote the Riel, the Bakong payment system and the KHQR.

Vital contribution

The event highlighted the vital contribution of the Riel to a sustainable and resilient economy, emphasising the need for its widespread use to strengthen national sovereignty and improve the effectiveness of macroeconomic policies. Participants acknowledged the progress made and discussed future steps to promote the use of the Riel in all sectors.

H.E. Chea Serey stressed that the reintroduction of the Riel 45 years ago was crucial to strengthening national identity and sovereignty and rebuilding the economy after the fall of the Khmer Rouge regime.

Over the past two decades, under the umbrella of peace and stability achieved through the policies of former Prime Minister Techo Hun Sen, the economy has made rapid progress in almost all sectors, and the value of the Riel has remained stable with low inflation, she said, adding:

‘Political and economic stability has enabled the Royal Government of Cambodia and the National Bank of Cambodia to implement policies to promote the Riel through market mechanisms, restore confidence and create Riel-denominated monetary instruments.’

According to the NBC, the volume of Riel in circulation has grown steadily at an average annual rate of 15% over the past two decades, while Riel loans and deposits in the banking system have also grown rapidly at rates of 35% and 30% respectively.

The importance of the Riel in Cambodia

The Riel plays a crucial role in the country's economic identity and development. Despite the widespread use of the US dollar in Cambodia, the National Bank of Cambodia's (NBC) efforts to promote the Riel have expanded over the past decade, reflecting its growing demand and importance.

Riel circulation has increased by an average of 14% per year over the past decade, from 3.8 trillion Riel to over 14 trillion Riel today. This growth reflects increased confidence in the currency, although dollarisation remains high, with USD deposits accounting for 88.8% of total bank deposits.

The riel is widely used in rural areas and in agriculture-related transactions, where up to 86% of income is denominated in riel. This underlines its inclusive nature and its essential role in supporting small and medium-sized enterprises (SMEs), particularly those operating outside urban centres.

Promotional and awareness campaigns

The NLC has launched extensive campaigns to raise public awareness of the importance of the Riel. These campaigns include the celebration of Riel Day, the organisation of seminars and the promotion of its use through media and educational initiatives. In addition, measures such as exchanging damaged notes for new ones and price labelling in Riel and USD have encouraged wider adoption.

Challenges and prospects

Dollarisation remains a major challenge to the dominance of the Riel. High-value transactions are often conducted in USD and electronic payment systems are increasingly facilitating cross-border payments without the need for physical currency. However, progressive steps are being taken to increase the use of the Riel domestically, with more businesses paying wages in Riel and SMEs adopting it for day-to-day transactions.

Although internationalisation of the Riel is not currently planned, its integration into regional payment systems indicates progress towards wider acceptance in South East Asia.