PHNOM PENH – Cambodia marked the 45th anniversary of re-circulation of the riel with a call for wider use of the national currency.

The event to mark the occasion was hosted by the two legislative chambers during a workshop on “Riel, Bakong Payment System and KHQR” on March 20, the day 45 years ago when the currency was restored after the collapse of the Khmer Rouge regime.

Speaking at the seminar, Cheam Yeap, First Vice President of the National Assembly said the seminar aimed to raise awareness and participation of ministries, institutions and the public, especially the legislative bodies, in supporting the riel. He said using riel helped develop the economy and make it more resilient.

Yeab said that the assembly fully support the National Bank of Cambodia (NBC) in strengthening the effectiveness of the monetary policy framework, which has been continuously modernized, especially in response to the digital age, as well as promoting the widespread use of the riel to maintain national sovereignty, improve economic freedom and strengthen national identity and resilience.

“The riel has promoted the national identity, built trust, helped promote solidarity and fostered unity and nationalism in the Kingdom of Cambodia,” he said. 

“Therefore, promoting greater use of the riel further promotes the effectiveness of monetary policy, which helps in managing macroeconomic policies and sustainable socio-economic development.” 

NBC governor Chea Serey said reintroducing the riel contributed to strengthening national identity and sovereignty and rebuilding the economy from the ashes of the Pol Pot regime, which destroyed all economic and social sectors.

She said the civil war lasting more than three decades and the devastating Khmer Rouge regime led to a loss in confidence in the riel and restoring confidence was very difficult. The massive inflow of dollars in the early 1990s made Cambodians accept the US dollar as the daily currency.

“However, in the last two decades, the economy has made rapid progress in almost all sectors, and the value of the riel has also been very stable with a low level of inflation,” Serey said.

She said political and economic stability had enabled the government and NBC to implement policies to promote the use of the riel through market mechanisms, restoring confidence in the riel and creating monetary instruments in riel. 

As a result, the volume of riel in circulation had steadily increased by an average of 15% per year over the last two decades, while loans and deposits in the banking system in riel have grown at rates of 35 percent and 30 percent respectively.

During the seminar, Chheang Vun, chairman of the NA’s Commission on Economy, Finance, Banking and Audit, highlighted the history of the creation of the riel, the reincarnation of the NBC and effort of the leaders to reintroduce the riel after the country was liberated on January 7, 1979. 

He said that this showed thorough consideration and recognition by the leaders at the time of the necessity of having its own national currency to revive the economy from scratch.