The Economy of Cambodia
Dollarisation and Monetary Policy
Cambodia's economy is heavily dollarised, which reduces inflation risk but limits the central bank's tools.
A dollar-based economy.
Extent
Most deposits and loans are in US dollars.
Benefits
Stable prices and easy international trade.
Limits
The central bank cannot print dollars to support banks or set interest rates independently.
Bakong
A digital payment system launched in 2019 promotes the riel and links to regional payment systems.
A QR payment
A shopper scans a Bakong QR code and pays in riel or dollars.
Assuming a central bank always controls the money supply
In a dollarised economy, it doesn't fully.
Key takeaways
- The economy is heavily dollarised.
- Prices are stable.
- Policy tools are limited.
- Bakong promotes riel use.
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