Factors behind Foreign Currency Holding by Household in Cambodia

Cambodia has never officially adopted the U.S. dollar or other foreign currency as means for transaction, unit account or store of value. Yet, over the past decade, the country has become one of the most “dollarized” economies in the world. The objective of this study is to provide some insights into motives behind the usage of foreign currencies by domestic households. While early studies have been constrained by their reliance on official macroeconomic and financial data, especially from the banking sector, our analyses will largely be based on a unique database generated from a survey conducted on 1500 households across rural and urban areas of 17 provinces (out of total 24 provinces) in the country.