The Benefits of a United States–Dollar Economy In Cambodia
The US dollar, alongside the Cambodian riel, are the official currencies of Cambodia. This means that the US dollar is recognised and accepted as legal tender in Cambodia and can be used to buy goods and services.
The US dollar is used more widely than the Cambodian riel in Cambodia because the US dollar is more stable and has a higher value than the Cambodian riel. Most businesses in Cambodia accept US dollars, and many people in Cambodia prefer to keep their savings in US dollars.
There are several benefits to a US-dollarised economy in Cambodia, including:
Currency stability
The US dollar is a stable currency, which means that it is less likely to fluctuate in value. This can provide businesses and investors with confidence, as they know that their money will not lose value overnight.
Worldwide access to funds
US dollars can be accessed from many ATMs worldwide; however, some countries may only dispense local currencies.
Reduced transaction costs
When two parties are transacting in the same currency, there are no currency conversion costs. This can save businesses and individuals money, as they do not have to pay fees to convert their currency.
Increased trade
The use of the US dollar makes it easier for Cambodia to trade with other countries. This is because the US dollar is widely accepted around the world, which effectively removes barriers between international trading partners.
Attraction of foreign investment
The use of the US dollar can make Cambodia more attractive to foreign investors. This is because foreign investors know that their investments will be protected in a stable currency.
