Cambodian Currency – The Best Guide To What Money You Should Bring

Coming to Cambodia for the first time and not sure what currency to bring? Check out this handy guide to Cambodian currency!
Cambodia currently has a fairly unique system when it comes to money, and it can be difficult to figure out the best way to approach it as there’s lots of conflicting and outdated information available online.

What is a dual currency system?
As it stands, the Kingdom of Wonder is running on a dual currency system, which means that more than one currency is in daily use for spending. Those currencies are the Khmer Riel (KHR) which is the national Cambodian currency and the United States Dollar (USD).

Why does Cambodia use the US Dollar?
Although some amounts of USD had been present in Cambodia since the period of the Khmer Republic (1970-1975), true dollarisation in Cambodia began in the early 1990’s. While not an active policy based decision, this came about due to two main factors, the weak state of the Khmer Riel (KHR) due to instability and a major influx of US currency as a result of the UN’s UNTAC operation.

If you’re coming to Cambodia, whether that’s to visit the Angkor Wat temple complex in Krong Siem Reap, or to hit up the big city in Phnom Penh, you’ll need to know all about the Cambodian currency situation.

Which is the most used Cambodian currency?
Both the USD and Khmer Riel are very present in day to day life. However, both come with drawbacks. For example, USD bills have to be in pristine condition and not too old or worn. Cambodia does not have the ability to print or produce USD notes, so even a tiny rip, tear or even an ink stain can see your bill refused. With the Khmer Riel however, this is not an issue. Only paper notes are used in Cambodia, and coins are not accepted or exchanged.

* National USD currency directive August 2024 *
An emergency national directive has been issued by Cambodian Prime Minister, Hun Manet, which requires the Cambodian Commercial Bank to accept soiled, ripped and damaged USD bills and exchange them without any charges. As a result, US Bills are under a lot less scrutiny. This originally was aimed at Siem Reap for tourism purposes but has been extended countrywide. Due to the original bill being targeted at Siem Reap, it may not be adhered to in other provinces, so please be aware you may still have soiled or damaged US bills rejected in other parts of Cambodia.

Directives like these will often take time to trickle down to smaller vendors, so please be prepared to have damaged bills rejected in Siem Reap regardless. Another great reason to carry Cambodian currency!

It was also declared that banks and ATM’s are now able to stock smaller denomination bills and it’s been reported that $20 bills are now available. It will take time for this to trickle down to smaller businesses but a soiled US bill is no longer as much of a problem as it previously was. Reports are coming in that even other banks such as ABA are willing to now accept these notes. To understand why this is such big news, read on further. This is excellent news! Although declared as a temporary measure, there is hope that this will continue long into the future.

Despite these new directives, we will leave all previous information here for you to read, as this has not been fully adopted everywhere yet, and may be a temporary measure. We still recommend exchanging your money to the Cambodian currency (KHR) when you arrive.

The largest denomination of Khmer Riel (the official Cambodian currency) currently in circulation the 100,000 riel note, which is worth around $25. Whilst the exchange rate does fluctuate, you’ll find that many businesses around town such as bars and restaurants will use a flat rate of 4,000 riel to 1USD. This however can be different in supermarkets and restaurants that use electronic point of sale systems as they will often use a rate of 4,100 riel or whatever is closer to the current exchange rate.

Because of the lack of higher denominations in the Cambodian currency, people will often use USD for larger purchases simply for ease. However, for day to day life and small purchases, the Cambodian currency has gained back a lot of its power, especially outside of the major cities, where smaller denominations of US Bills ($1, $2, $5) are becoming few and far between due to recent policies brought about by the National Bank of Cambodia in it’s attempts to de-dollarize.

Which currency should I bring to Cambodia?
Our personal recommendation will depend on which country you are coming from. If you’re coming from a country that already uses the US Dollar then of course we recommend bringing that. If you’re from a country that uses a well recognisable currency such as the British Pound (GBP) to the EURO (EUR) we recommend bringing a small amount of USD to pay for things you may need immediately (such as your visa fee or your taxi from the airport) and some of your own currency to exchange at one of the many exchange shops around Cambodia.

This is simply for the fact that currency exchange shops within Cambodia often give a much better exchange rate than you’ll get in your home country.

We also recommended bringing small denomination notes where possible as it will make it easier to spend them during smaller transactions.

Personally we recommend exchanging your currency to Khmer Riel, as then you won’t have to worry about damaging your USD whilst enjoying your holiday and subsequently having it refused! However, be sure to exchange it back to USD before leaving Cambodia as the Riel is currently a closed currency, with it only being used and exchanged within Cambodia, with the exception of some exchange locations in Singapore due to recent attempts to increase it’s usage.

We recommend the same when it comes to withdrawing cash from an ATM inside Cambodia. Withdraw your money in Khmer Riel for spending and then exchange your leftovers before you leave. Many ATM’s, especially the blue ABA Bank ATM’s will offer you a choice between withdrawing in Khmer Riel or US Dollar.

If you choose to withdraw in USD, be aware that due to recent policy changes brought in to promote the Riel and move towards de-dollarization, ATM’s will only dispense 50USD and 100USD notes, which can be difficult to spend if you’re making small purchases due to vendors not having enough change. ATM’s in Cambodia have pretty high fees, usually between $4 and $6, so take this into account and try to avoid making multiple small transactions and instead withdraw money in larger amounts.

Are credit cards accepted in Cambodia?
Cambodia has made big strides in recent years, and credit/debit cards are slowly becoming more widely accepted. Many larger businesses such as hotels in Siem Reap and Phnom Penh, supermarkets, and popular restaurants will have the ability to accept credit card payment. This can however be hit and miss, and cash is still king in Cambodia so we recommend not relying on this, and checking with your hotel before your arrival. Smaller vendors will not be able to accept credit card payments. Visa and Mastercard is most widely accepted, with many vendors being unable to accept American Express.

* Bakong Tourists App for Digital Payments in Cambodia *
Tourists in Cambodia are now able to use the Bakong Tourists App which allows them to pay digitally without cash all over Cambodia. This app allows you to pay almost anywhere in Cambodia via your phone with the local Cambodian currency or USD. The app uses both Cambodian Currency (KHR) and American Dollars (USD).
CLICK HERE TO READ ALL ABOUT THE BAKONG TOURIST APP

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