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Local vendors shun small US currency


geovalin

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Reports of local vendors refusing to accept small US currency banknotes has continued over the weekend, despite repeated calls from both the Kingdom’s central bank and Prime Minister Hun Sen that all US currency banknotes will still be considered “legal tender”. The confusion started Friday last week after the National Bank of Cambodia’s (NBC) director, Chea Serey, asked commercial banks and microfinance institutions to send it the small US dollar banknotes because it considers them difficult to manage and “there is little demand for them”.

 

However, many local street and market vendors have confused the “phase out” with an actual “banning” of the notes as officially recognised tender and have been refusing to accept the bills. The day after the announcement, Khmer Times visited Phnom Penh’s Kandal Market and spoke to various traders who expressed concerns that they did not want to be “stuck” with the notes after August 31 and feared 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. “What if the bank and MFIs decide to add the additional cost of transportation that the NBC wants to impose on me when I deposit the notes for my loan?” they added

 

read more https://www.khmertimeskh.com/50728832/local-vendors-shun-small-us-currency/

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7 hours ago, geovalin said:

“there is little demand for them”.

Not in my experience here in Siem Reap. 1 and 5 US$ bills in constant use however the 2 US$ bill as mentioned not so common. My local Khmer vendors willingly accept them. 

Quote (from link):-

 

In response, Prime Minister Hun Sen has directly addressed the concerns stating, “I would like to confirm to the Cambodian people that in addition to the NBC announcement on May 28 that the small US banknotes of $1, $2, and $5 are still widely used and accepted across the country.

“It was not banned as rumoured,” he added.

“In the event of a halt to the circulation of the said US bills, an official announcement from the National Bank of Cambodia will be released to the public,” Mr Hun Sen said.

“All citizens, please continue spending freely the said banknotes in the Kingdom without any loss in exchange rates or additional charges,” he added.

 

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