Everything You Should Know About Cambodian Currency

 

When preparing for a trip to Cambodia, understanding the local currency is a key concern. Knowing how to manage and spend money in Cambodia will help you avoid unexpected challenges during your time in the Kingdom of Wonder. Here’s everything you need to know about Cambodian currency!

Official currency in Cambodia

Cambodian Currency Facts

The Cambodian Riel (KHR)

The Cambodian Riel (KHR) is the official currency of Cambodia, and its symbol is ៛. The Riel has gone through two significant periods in the country’s history.

In 1953, Cambodia gained independence from France, and this marked the introduction of the first riel. At that time, Cambodia issued banknotes that were dual-denominated in riel and piastre. The piastre was derived from Spanish pesos, known as “pieces of eight.” However, this version of the riel was abolished in 1975 when the Khmer Rouge took control of the country.

After the fall of the Khmer Rouge in 1979, the Central Bank of Cambodia was re-established, and in 1980, the second version of the riel was introduced. Due to a severely disrupted economy and a shortage of money, the central government issued the new currency directly to the public to encourage its use. This is the current version of the riel, which comes in the following banknote denominations: 50, 100, 500, 1,000, 5,000, 10,000, and 50,000.

The Origin of the Word "Riel"

There are several theories regarding the origin of the word "riel." Some believe that it comes from the Khmer word for “small fish,” while others speculate that it is derived from the high silver Mexican real that was used widely in Cambodia during the 19th century by merchants from Malaysia, China, and India.

US Dollar (USD)

Although the Khmer Riel is the official currency in Cambodia, US Dollars are widely accepted, especially in urban and tourist areas. The dollarization of Cambodia began in the 1980s and continued into the early 1990s when the United Nations provided humanitarian aid to the country. Additionally, Khmer refugees sent remittances home, which contributed to high inflation rates, peaking at 177% per year.

As a result, the public lost confidence in the riel, and the use of the US Dollar became increasingly common. From 1991 to 1993, during the UN’s Transitional Authority in Cambodia, international personnel contributed significantly to the economy by spending in US Dollars. As of now, the exchange rate fluctuates between 4,000 and 4,200 Cambodian riels for 1 USD.

Tourists can exchange money at banks, but to get better deals, it’s recommended to find local money changers in popular tourist spots. Note that damaged, torn, or old banknotes will not be accepted, so be sure to bring bills in good condition.

When traveling in Cambodia, which uses a dual currency system, tourists can make payments in KHR, USD, or a combination of both. However, you should expect to receive change in Cambodian riel, and in some cases, you may find that prices in USD are slightly higher than in riels. For smaller purchases, it’s best to use the local currency, riels, to get the best value. If you’re visiting more remote areas where USD is not as commonly used, it’s helpful to carry small denominations of riels.

Recently, a campaign to promote de-dollarization has been underway, aiming to phase out small US dollar notes ($1, $2, and $5) from circulation. This initiative is part of an effort to foster national pride and increase the use of the riel. Consequently, you may find that smaller USD notes are not widely accepted in markets or roadside stalls.

Bakong – Cambodia's Digital Currency

In October 2020, the National Bank of Cambodia launched a central bank-backed digital currency called Bakong. Named after a famous Angkorian temple, Bakong uses blockchain technology co-developed with a Japanese fintech company.

By installing the Bakong mobile app, users can make transactions in both riels and US dollars by entering the payee’s phone number or scanning a QR code. This system does not charge transaction fees, whether users are transferring money from their bank account to their Bakong account or vice versa.

Bakong operates under a "Know-Your-Customer" system, where users must register their ID at a bank branch to open a Bakong account. Because Bakong’s digital currency is backed by assets held at the central bank, liquidity risks are minimal.

The goal of Bakong is to promote financial inclusion by providing an easy, cash-free method of transaction that benefits individuals and businesses alike. It also supports social welfare by enabling seamless e-payments.

Conclusion

Understanding the currency systems of Cambodia—both the Khmer Riel and the widely used US Dollar—will help you navigate your trip with ease. Whether you’re exchanging money, making purchases, or exploring digital payment options like Bakong, you’ll be well-equipped for your journey in Cambodia.

We hope the information provided about Cambodia Currency helps you plan your upcoming trip. Our local travel experts are always ready to assist you in customizing a tour, ensuring you don't miss any exciting experiences. Feel free to leave a comment below or reach out to World Mate Travel using the contact information below:

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