II Economic and Financial Developments
Author:
International Monetary Fund
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Language:
English
Print Publication Date:
30 Sep 2003
Keywords:
OP; dollar; foreign currency; currency; cash dollar; foreign currency deposit; IMF staff estimate; resumed IMF lending; inflation performance; ESAF II; Inflation; Currencies; Exchange rate arrangements

Abstract

Cambodia became independent from France in 1953 and experienced a 17-year period of relative political stability and steady economic growth, starting from a development base similar, if not superior, to that of other countries in South East Asia (Box 1). During that period, the riel was the legal tender and was used both for financial transactions and as a store of value. Following the March 1970 coup d’état that toppled the government, the country was quickly drawn into the international turmoil of the subregion, and eventually into a civil war. In 1971, a flexible exchange rate system was introduced, while the exchange rates were unified. However, owing to economic difficulties, a dual exchange rate system was reinstated in 1973 with a “basic” rate for most transactions and a “preferential rate” for aid-related imports and services.1

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Cover Economic Policy in a Highly Dollarized Economy
Economic Policy in a Highly Dollarized Economy
The Case of Cambodia
ISBN:
9781589061897
ISSN:
0251-6365
Publication Date:
30 Sep 2003
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589061897.084
Pages:
40

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