Logo of Phnom Penh Post newspaper Phnom Penh Post - Push for border use of local currencies

Push for border use of local currencies

A porter pushes goods across the Thai-Cambodian border in Battambang in April.
A porter pushes goods across the Thai-Cambodian border in Battambang in April. Heng Chivoan

Push for border use of local currencies

Business leaders from the Lower Mekong region are urging their respective governments to use local currencies for trading in border regions instead of the US dollar, arguing that this would facilitate business transactions and reduce exchange costs, a Thai newspaper reported yesterday.

Sanan Angubolkul, president of the Thailand-Vietnam Business Council, said the use of local currencies for trade in border areas would benefit business operators in a number of ways, shortening the trade process while reducing the risks and costs of volatile exchange rates against the US dollar. This would result in more trade, he told the Bangkok Post.

He added that business leaders in Thailand and the Cambodia, Laos, Vietnam and Myanmar (CMLV) region were planning to propose the local currency plan to their governments yesterday during the 7th Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy Summit (ACMECS-7) in Hanoi.

However, a Cambodian trade official who joined the ACMECS-7 meeting yesterday could not confirm that the proposal had been discussed.

“I did not hear anything regarding this plan,” said Sim Sokheng, director-general of international trade at the Ministry of Commerce.

Economist Chan Sophal said the acceptance of local currencies along border regions would facilitate both business and tourism. He said Cambodian traders were already accepting Thai, Vietnamese and Lao currencies in border areas, but the riel was not readily accepted outside the country.

“Our country is free and flexible in using foreign currencies, and we already accept various currencies near our borders,” he said. “But whether we can use our riel banknotes on their side of the border is a question.”

He said the use of riel currency in neighbouring countries would involve the “leaking of money” into these countries, which carries a slight monetary risk to the National Bank of Cambodia, but when spent the currency’s value would be recovered as products and services.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Angkor Beer, 30 Years of Prestige and Still Counting

    Let’s celebrate 30 years of prestige with Angkor Beer. In this 2022, Angkor Beer is 30 years old and has been staying with Cambodian hearts in all circumstances. Head of core beer portfolio, EmYuthousaid, “We have been with Cambodians for three decades now. We, ANGKOR Beer, pride

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,