USD to KHR fluctuations
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- Wun Gwo Pee
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USD to KHR fluctuations
I've often wonder what factors come into play in the (admittedly) minor fluctuations between the USD / KHR cross-rate. For the last decade or so it has traded in close range around 4000 with small fluctuations now and again, but what are the factors that influence those moves. Given the riel is unwanted and untreated outside Cambodia and the banking system is relatively closed to the outside world, it's odd that there should be too much movement.
Does any financial whizz have any insights into this?
Does any financial whizz have any insights into this?
- Khmerhamster
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I'm also interested. I've puzzled over this for quite a while.
I know there is annual movement around KNY when loads of people buy riel to go back to the province. It bumps and recovers within a few weeks.
I know there is annual movement around KNY when loads of people buy riel to go back to the province. It bumps and recovers within a few weeks.
- springrain
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I'm no expert, but it's probably because the Dollar is the de facto currency. This will allow for small fluctuations within a very narrow band. More info on the classification here:
https://www.imf.org/external/np/mfd/er/ ... g/0706.htm
More on what it means to 'peg' a currency here:
http://www.investopedia.com/terms/c/cur ... t=5F&ato=0
Whether or not the Riel is officially pegged to the USD, I'm not sure. I don't think it actually is, but am prepared to stand corrected.
An interesting article, though a bit out-of-date, here:
http://www.bbc.com/news/world-asia-pacific-12906831
Can you remember a few years ago, when HE asked foreigners to conduct more transactions & carry cash in Riel? Ironically, I think most expats do carry plenty of Riel as there is no other way to carry small change. I also remember some beggars & hawkers a few years ago refer to $1 as 'Mooay Riel' (sp?).
Returning to the question, perhaps little factors such as a 'rush' to buy Riel notes might have a tiny effect, due to S&D, but equilibrium will soon sway back. Personally, I think we should use Pounds here!!
https://www.imf.org/external/np/mfd/er/ ... g/0706.htm
More on what it means to 'peg' a currency here:
http://www.investopedia.com/terms/c/cur ... t=5F&ato=0
Whether or not the Riel is officially pegged to the USD, I'm not sure. I don't think it actually is, but am prepared to stand corrected.
An interesting article, though a bit out-of-date, here:
http://www.bbc.com/news/world-asia-pacific-12906831
Can you remember a few years ago, when HE asked foreigners to conduct more transactions & carry cash in Riel? Ironically, I think most expats do carry plenty of Riel as there is no other way to carry small change. I also remember some beggars & hawkers a few years ago refer to $1 as 'Mooay Riel' (sp?).
Returning to the question, perhaps little factors such as a 'rush' to buy Riel notes might have a tiny effect, due to S&D, but equilibrium will soon sway back. Personally, I think we should use Pounds here!!
Last edited by springrain on Fri Jul 01, 2016 1:25 pm, edited 1 time in total.
'History is a set of lies agreed upon.'
Attributed to Napoleon
Attributed to Napoleon
Typical BBC sloppy contradictory journalism. "riel is only used for transactions under $1" then "$5 or 20,000 riel, its all the same to Cambodians".
I've seen riel used for bigger transactions ($20) in PP and SHV many times and have done this myself, as I have a KHR MiFi account, ATMs do issue Riel but you have to have an account in that currency, at least thats the case at Canadia.
I often get asked by a vendor if Riel is OK when they give change. Sure, $5 or 20,000 its all the same to me!
If anything the KHR will replace the USD.
I've seen riel used for bigger transactions ($20) in PP and SHV many times and have done this myself, as I have a KHR MiFi account, ATMs do issue Riel but you have to have an account in that currency, at least thats the case at Canadia.
I often get asked by a vendor if Riel is OK when they give change. Sure, $5 or 20,000 its all the same to me!
If anything the KHR will replace the USD.
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- springrain
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**Update""
According to wiki, the classification is: US dollar as exchange rate anchor: https://en.wikipedia.org/wiki/List_of_c ... ate_regime
To be fair, YTP, that article was from 2011. Things have changed somewhat since.
According to wiki, the classification is: US dollar as exchange rate anchor: https://en.wikipedia.org/wiki/List_of_c ... ate_regime
To be fair, YTP, that article was from 2011. Things have changed somewhat since.
'History is a set of lies agreed upon.'
Attributed to Napoleon
Attributed to Napoleon
- Barang_doa_slae
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I always thought the rice crop played a role once or twice a year since most agricultural trade is made in riel.
I did notice the date.springrain wrote:**Update""
According to wiki, the classification is: US dollar as exchange rate anchor: https://en.wikipedia.org/wiki/List_of_c ... ate_regime
To be fair, YTP, that article was from 2011. Things have changed somewhat since.
Have attitudes changed that much in 5 years?
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- Lucky Lucan
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The article doesn't say that though, it says:YaTingPom wrote:Typical BBC sloppy contradictory journalism. "riel is only used for transactions under $1"
- which is accurate.So people use the Cambodian currency for anything less than a dollar.
Cambodian Public Bank gives out Riel or Dollars, but the accounts are in Dollars.ATMs do issue Riel but you have to have an account in that currency, at least thats the case at Canadia.
That's a common colloquialism, I hear it and use it all the time.Springrain wrote: I also remember some beggars & hawkers a few years ago refer to $1 as 'Mooay Riel'
Romantic Cambodia is dead and gone. It's with McKinley in the grave.
It may be accurate but it's still sloppy.
Of course they use it for transaction under a $ but that can also be said as change for under a $ is given in riel.
I was referencing Canadia bank as I don't know about other banks.
Pedantic much.
Of course they use it for transaction under a $ but that can also be said as change for under a $ is given in riel.
I was referencing Canadia bank as I don't know about other banks.
Pedantic much.
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- Khmerhamster
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Ha! The irony.YaTingPom wrote:
Pedantic much.
Lucky Lucan was addressing your pedantic corrections to the BBC article - which were incorrect!
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My understanding is that four gentlemen sit down in a room from time to time and decide what the upper and lower limit will be.
Seems more feasible than anything else.
Seems more feasible than anything else.
- Khmerhamster
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And where, pray tell me, would one find four gentlemen in Cambodia?RobW wrote:My understanding is that four gentlemen sit down in a room from time to time and decide what the upper and lower limit will be.
Seems more feasible than anything else.
Irony indeed.Khmerhamster wrote:Ha! The irony.YaTingPom wrote:
Pedantic much.
Lucky Lucan was addressing your pedantic corrections to the BBC article - which were incorrect!
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Quite often at the Box Office on a schoolnightKhmerhamster wrote:And where, pray tell me, would one find four gentlemen in Cambodia?RobW wrote:My understanding is that four gentlemen sit down in a room from time to time and decide what the upper and lower limit will be.
Seems more feasible than anything else.
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