• Economics

Use Riel for Salaries and Products: Economist

• By Ou Sokmean
• January 25, 2024 9:50 AM

PHNOM PENH – The Government should encourage the private sector to use riel when paying employees and selling products to increase circulation of the Khmer currency, says economist Ky Sereyvath.

Sereyvath, a researcher at the Royal Academy of Cambodia, said the public has a good understanding of riel but there are still gaps to be filled by the government and the public. 

“The private sector still uses the US currency widely for paying employees. However, using riel in the payroll system can encourage people to use riel more often,” he said. 

“To promote the national currency, salaries should be in riel. Once this is implemented successfully, the government could set up payrolls completely in riel.  

“To ensure all the transactions in Khmer riel run smoothly and stably, the government should encourage all vendors to sell products in riel,” he said. 

When it comes to goods and services, Sereyvath said businesspeople would not agree to sell their products in riel if they bought in dollars. To have a smooth operation, all transactions should be in riel. 

Once the public fully adopts riel in their daily transactions, the country would experience currency appreciation as the riel gained value compared to the dollar. He said the government should ensure and maintain a stable exchange rate in the market.  

Additionally, the government should provide conveniences for riel consumers. In the meantime, they should increase the costs or impose difficulties for dollar users in the banking system or in their economic activities. 

Sereyvath said the government needs three to five years to increase use of riel to 50 percent. So far, only about 15 percent of riel are used in transactions. 

 

Originally written in Khmer for ThmeyThmey, this story was translated by Rin Ousa for Cambodianess.