Cambodia: ‘Phase-out’ of small US banknotes causing confusion

• May 29, 2020

The National Bank of Cambodia’s (NBC) announcement yesterday that it plans to phase out the use of the $1, $2 and $5 banknotes by August 31, has confused the local community with many believing the notes are being “banned”.

Khmer Times was told by market traders in Phnom Penh’s Kandal Market today that they did not want to accept $1 bills for fear of them being “rendered useless in the coming months”.

“I heard this morning that the government wants to ban the use of small US currency, so I don’t want to be stuck with the banknotes when this happens,” a local vendor said.

There have also been reports on social media of some regional gas stations refusing the American currency from customers, expressing the same concerns.

According to the director of the NBC, Chea Serey, $1, $2 and $5 banknotes are not being “banned” and will still be accepted as legal tender in the Kingdom.

“Please note that this measure does not ban any trafficking of these small US dollar banknotes of $1, $2, and $5 in the market,” the central bank stressed.

Source: https://www.khmertimeskh.com/50728483/phase-out-of-small-us-banknotes-causing-confusion/