CNRP to end dollar economy within a year
CNRP to end dollar economy within a year
A CNRP spokeseman has today said that if they win next year's election, they will initiate policies to end the dollar economy, and said that all transactions would be in riel within a year. He didnt say how it would happen, just blithely saying 'it's very technical', nor did he give any more details.
It sounds like a load of nonsense to me.
More here: https://www.cambodiadaily.com/news/cnrp ... ys-131228/
It sounds like a load of nonsense to me.
More here: https://www.cambodiadaily.com/news/cnrp ... ys-131228/
It's hard to see what their thinking is. Presumably they think it's a vote winner but from who? Their key consituency is the educated urban population who will likely have dollar reserves, and nobody ever wins the seat of the rural poor - you buy it.
- Lucky Lucan
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It's like their promise to give each commune $500,000 a year once they get in. Just a wild populist idea that makes no sense. There are about 1650 communes in the country, and they vary wildly in size -some have only 3 villages, others have 30 or more. Obviously the needs are completely different in each, so for a remote commune with few inhabitants it sound like a great deal of money which could suddenly transform the whole infrastructure and environment. For a city commune it wouldn't mean much at all, it wouldn't even pay for road maintenance.
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
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They maintain roads now?Lucky Lucan wrote:For a city commune it wouldn't mean much at all, it wouldn't even pay for road maintenance.
- Felgerkarb
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inflation would run out of control. Not happening.
====================
Why are the gods such vicious cunts?
Where is the god of tits and wine?
Why are the gods such vicious cunts?
Where is the god of tits and wine?
- Lucky Lucan
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Yeah, most of the streets in the capital are pretty well-maintained now. My street was getting rough for a while, then they stuck in a new drainage system and it was a total mess for six months, now it's flat and smooth as a pancake.tuk-tukfish wrote:They maintain roads now?Lucky Lucan wrote:For a city commune it wouldn't mean much at all, it wouldn't even pay for road maintenance.
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
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It's an interesting debate though.
On the one hand, using a strong dollar massively drives up the cost of doing business here, and can make it unsustainable to manufacture here when compared to neighboring countries. It limits the government's abilities to have full control over their own economy, which is exactly what has hindered Greece's recovery as they cannot devalue themselves to boost exports/tourism.
On the other hand, the dollar brings stability, and attracts outside investment from those in the region that want to invest in a dollar-ized economy. Just the other week I had a meeting with a Malaysian that was expanding here, for the sole reason that he wanted to put his money in the dollar. Clearly, Chinese investors go without saying.
It's a good talking point, but unmanageable, at least in the short term. There have already been small pushes for it, which we talk about here from time to time, such as preferred interest rates in the banks for keeping in riel, or the different tax requirements to operate in riel. However, for the time being, I believe the benefits of operating in dollars still outweigh the negatives. Eventually the change may be made, but Cambodia is not alone in the U.S. dollar camp (Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos, British Virgin Islands, Zimbabwe).
On the one hand, using a strong dollar massively drives up the cost of doing business here, and can make it unsustainable to manufacture here when compared to neighboring countries. It limits the government's abilities to have full control over their own economy, which is exactly what has hindered Greece's recovery as they cannot devalue themselves to boost exports/tourism.
On the other hand, the dollar brings stability, and attracts outside investment from those in the region that want to invest in a dollar-ized economy. Just the other week I had a meeting with a Malaysian that was expanding here, for the sole reason that he wanted to put his money in the dollar. Clearly, Chinese investors go without saying.
It's a good talking point, but unmanageable, at least in the short term. There have already been small pushes for it, which we talk about here from time to time, such as preferred interest rates in the banks for keeping in riel, or the different tax requirements to operate in riel. However, for the time being, I believe the benefits of operating in dollars still outweigh the negatives. Eventually the change may be made, but Cambodia is not alone in the U.S. dollar camp (Ecuador, East Timor, El Salvador, Marshall Islands, Micronesia, Palau, Panama, Turks and Caicos, British Virgin Islands, Zimbabwe).
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Unless the electorate don't understand the issue and just assume it must be good...Jackal wrote:Well, that's not going to win them any votes.
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
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I don't understand the economic advantages of this at all, but I suppose the logical question would be...if the dollar is so advantageous, why do most countries have their own currency?
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
ירי ילדים והפצצת אזרחים דורש אומץ, כמו גם הטרדה מינית של עובדי ההוראה.
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How is ditching the USD anti Vietnam?vladimir wrote:I don't understand the economic advantages of this at all, but I suppose the logical question would be...if the dollar is so advantageous, why do most countries have their own currency?
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
pew, pew, pew, pew!
Because MONEY!!! Obviously.YaTingPom wrote:How is ditching the USD anti Vietnam?vladimir wrote:I don't understand the economic advantages of this at all, but I suppose the logical question would be...if the dollar is so advantageous, why do most countries have their own currency?
I'm sure national pride plays a part, and this is what the CNRP are doing here, it fits in with the anti-Vietnam rhetoric.
"The final straw actually involved my mortal enemy vladimir, who you may or may not know is an insufferable, overposting asshat."
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Does a rising dollar pull liquidity and growth away from the region? And the huge rising $ denominated debt in the region gets costlier as local currencies weaken. Isn't that how the Asian crisis played out?
http://stockcharts.com/h-sc/ui?s=EEM&p= ... 8959972180
But on the other hand the $ has been the safe haven in any crisis.
http://stockcharts.com/h-sc/ui?s=EEM&p= ... 8959972180
But on the other hand the $ has been the safe haven in any crisis.
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