European Parliament Library

Dollarization in Cambodia :, Causes and Policy Implications, Nombulelo Braiton

Abstract
Over the past decade, Cambodia has become Asia’s most dollarized economy. In contrast, dollarization in neighboring Lao P.D.R., Mongolia, and Vietnam has been either declining or broadly stable. Somewhat paradoxically, growing dollarization in Cambodia has occurred against the backdrop of greater macroeconomic and political stability. The usual motive, currency substitution, does not appear to have been a factor. As the volume of dollars increased over the years, so has the volume of riel. A strong inward flow of dollars related to garments sector exports, tourism receipts, foreign direct investment, and aid, has benefitted the dollar based urban economy. The riel based rural economy has, however, lagged behind. Given international experience in de-dollarization, a carefully managed market based strategy, supported by a continued stable macroeconomic environment is essential for Cambodia’s de-dollarization
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; 1. Macroeconomic and Social Indicators; II. Dollarization in General; III. The Cambodian Experience with Dollarization; 2. Riel and Foreign Currency Deposits, 2006-10; 3. Sources of Growth and Financing Flows; A. Costs and Risks of Dollarization; 1. Seigniorage Loss for Cambodia based on Currency in Circulation in Neighboring LICs; 4. Gross Official Reserves and Foreign Currency Deposits, 2006-10; B. Monetary Policy in Dollarized Cambodia; C. Structural Challenges that Instill Dollarization
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (42 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781455253227

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