Background
On 20 March 2026, in Phnom Penh, Dr. Keo Piseth, Acting Secretary General and Director of the Cabinet of Samdech Moha Rotsaphea Thipadei Khuon Sudary, President of the National Assembly, delivered a presentation marking the 46th anniversary of the reintroduction of the riel. The presentation reported on joint research conducted by the National Assembly and the National Bank of Cambodia on the use of currencies in the public sector, with a focus on strengthening the role of the riel in the national economy.
Scope of Application
The research and proposed measures focus on the public sector, including ministries and state institutions that manage public revenues, expenditures, and administrative operations. Particular attention is given to government contracts financed by the state budget, domestic administrative spending by line ministries, and public payments such as taxes, public service fees, and licensing. The analysis also considers activities with strong foreign currency involvement, such as foreign direct investment, official development assistance, and payments in the garment sector.
Key Provisions or Decisions
The joint research identified key data points on existing currency use in the public sector, including:
- The Ministry of Economy and Finance conducts approximately 80–90% of government revenues and expenditures in riel.
- The Ministry of Tourism conducts around 90–95% of its domestic administrative expenditures in the national currency.
- Use of the US dollar remains high at around 84% of M2, especially in activities linked to foreign actors, including foreign direct investment, official development assistance, and payments in the garment sector.
To support the riel as a foundation of the digital economy and reduce reliance on foreign currency, several key implementation points were highlighted:
- Mandatory rules for state-funded contracts: In the short term, all contracts that use state budget funds must ensure that prices are denominated and payments are settled entirely in riel.
- Modernization through the Bakong platform: Expansion of the “Bakong for tourists” program and promotion of the use of riel for tax payments, public service fees, and licenses via digital systems are identified as long-term strategies to phase out routine use of the US dollar.
- Inter-institutional cooperation: Establishment of an inter-ministerial committee and a data-sharing system, led by the National Bank of Cambodia, to monitor and manage exchange-rate risks more effectively.
Dr. Keo Piseth underlined that Cambodia has a legal basis and public-sector arrangements that enable further promotion of the riel, with the public sector expected to play a leading role in this process.
Implications for Investors, Businesses, or Compliance
Public contracts financed by the state budget are expected to be increasingly subject to mandatory use of the riel for price setting and settlement, affecting suppliers and contractors that engage with government entities. The emphasis on digital payments in riel through the Bakong system signals a gradual shift in how taxes, public service fees, and licenses may be paid, with growing operational importance for riel-based and digital payment capabilities. Businesses involved in activities with high foreign-currency use, such as FDI-related operations, ODA-funded projects, and the garment sector, may face closer monitoring of currency practices as inter-ministerial coordination and data sharing on exchange-rate risks are strengthened.
Official Source
National Assembly of Cambodia – official Facebook page post dated 20 March 2026.
Related: Cambodia’s tax framework is evolving with increased enforcement and compliance focus. See:
Cambodia Tax Policy Review and Outlook (2025–2026)
