Chea Serey, governor of the National Bank of Cambodia, speaks to Global Finance about the central bank’s efforts to modernize the country’s payments ecosystem, crack down on scams, and promote use of the Khmer riel.
Global Finance: How does the National Bank of Cambodia (NBC) maintain exchange-rate stability for the Khmer riel while supporting sustainable economic growth amid global uncertainties?
Chea Serey: Cambodia is a highly dollarized economy, with the U.S. dollar making up around 90% of transactions, so the NBC cannot rely on conventional interest-rate policy the way single-currency central banks do. Instead, the NBC needs to use unconventional tools such as direct and indirect foreign exchange intervention and bank reserve requirements while raising public awareness of the importance of local currency for the long-term resilience of the economy, particularly amid high uncertainty about global conditions.
As such, exchange-rate stability plays an important role in supporting price stability, protecting consumers’ purchasing power, and maintaining public and investor confidence. Over the past two decades, the Khmer riel has remained broadly stable, with average fluctuations of less than 2%.
GF: When we spoke last year, you highlighted the success of initiatives like the Bakong system, which enables fund transfers using personalized QR code or mobile phone numbers. Are these continuing to advance financial inclusion?
Serey: Bakong continues to advance financial inclusion and modernize Cambodia’s payments ecosystem. It now connects around 38 million bank accounts, and the standardized KHQR payment system is accepted at over 4.5 million merchant locations nationwide, with growing cross-border reach. In 2025 alone, Bakong processed roughly 771.2 million transactions in local currency and 554.5 million transactions in U.S. dollars, bringing more activity into the formal financial system and encouraging riel deposits.
Looking ahead, our priorities are deepening domestic functionality and expanding international reach. We’ve recently launched the Bakong Large Value system and enhanced know-your-customer regulations. Our next focus is making cross-border remittances simpler, faster, and more affordable. We’re also sharing our digital payment experience with other developing countries, including across Africa. As we innovate, we are equally focused on strengthening consumer protection, cybersecurity, and fraud detection.
GF: Considering recent measures against banks linked to scam centers, what additional steps is the NBC taking to strengthen anti-money laundering frameworks?
Serey: Protecting the integrity of Cambodia’s financial system is a fundamental NBC responsibility. Recent supervisory actions demonstrate the NBC’s commitment to ensuring that all regulated institutions comply fully with applicable laws, regulations, and prudential requirements.
We’ve completed our Second National Risk Assessment on anti-money laundering and countering the financing of terrorism, strengthening our national strategy and supervisory priorities. The new Law on Combating Technology-Enabled Scams reinforces the legal framework against online fraud and related money laundering. As financial crime increasingly exploits digital technology and crosses borders, we are strengthening regulations and standing ready to support the government’s efforts against misuse of virtual and digital assets. Our objective is clear; innovation must go hand in hand with strong safeguards for financial integrity.
GF: How is the central bank promoting greater use of the Khmer riel in everyday transactions while ensuring public confidence and financial literacy?
Serey: Riel promotion, public confidence, and financial literacy are inextricably intertwined. Our approach is gradual and market-based; households and businesses should choose the riel because it is useful, convenient, and reliable, not because they are required to.
Over the past five years, riel use has grown, driven by payment infrastructure modernization and government measures on pricing, taxes, and payrolls, with Bakong and KHQR easing everyday riel transactions.
Dollarization remains high, so the Royal Government of Cambodia and the NBC are developing a national strategy and committee for riel promotion to strengthen monetary policy, economic resilience, and national pride in the currency.
