Cambodia's currency, the Khmer riel, held its ground versus the US dollar in 2011, staying virtually unchanged year-on-year.

One greenback bought 4,057 riel at the end of last year, a decrease of just 0.05 per cent from the 4,055 riel a dollar bought at the end of 2010, according to the Ministry of Commerce.

National Bank of Cambodia director-general and spokeswoman Nguon Sokha claimed the riel offered much less volatility than other regional currencies.

“It proves there is more confidence in using more Khmer riel in the economy,” she said.

Business Research Institute for Cambodia CEO and chief economist Hiroshi Suzuki said: “The stability of the exchange rate is fundamental for a developing country that wants to invite foreign direct and indirect investment.”

The NBC’s policy is to keep the riel between 4,000 and 4,100 riel to the dollar, according to Nguon Sokha.

Experts, however, have highlighted the limited tools available to the NBC, given the Kingdom’s highly dollarised economy.