What is Cambodian Riel (KHR)?
Cambodian Riel (KHR)
The Cambodian Riel is subdivided into 100 sen, although sen coins are no longer in circulation. The Riel is significant in Cambodia’s economy, symbolizing the country’s sovereignty and independence. Despite the dual circulation with the US dollar, the Riel remains essential for smaller transactions and local markets.
In everyday life, Cambodians will often use Riel for purchasing goods and services in local markets, street vendors, and small businesses. The currency is also important for transactions involving smaller denominations, as the dollar is typically used for larger purchases. The exchange rate of the Riel against the US dollar fluctuates, but the Riel has seen relatively stable usage since the early 2000s.
The Riel features various denominations, both in banknotes and coins, although coins are rarely seen in circulation. The banknotes come in denominations of 1, 2, 5, 10, 20, 50, 100, 500, 1,000, and 10,000 Riel, with the 1,000 and 10,000 Riel notes being the most commonly used. Each banknote is adorned with images that reflect Cambodia's rich cultural heritage, historical landmarks, and significant national figures.
Since its introduction, the Riel has undergone several changes in design and security features to combat counterfeiting and enhance public confidence in the currency. The National Bank of Cambodia is responsible for issuing and regulating the Riel, ensuring stability and trust in the currency system.
While the Riel plays a crucial role in Cambodia’s economic identity, it is important to note that many businesses and tourists prefer the convenience of the US dollar for larger transactions. This coexistence of currencies reflects a unique aspect of Cambodia's economy, blending traditional practices with modern financial systems.
In summary, the Cambodian Riel stands as a vital part of Cambodia's identity, serving as a medium of exchange while coexisting with the US dollar. Its significance extends beyond mere transactions, embodying the nation’s history, culture, and aspirations for economic growth.