ABSTRACT
Similar to its neighboring ASEAN countries, the Cambodian economy has experienced favorable macroeconomic performance featuring an average annual growth rate of about 6% in real GDP and a single-digit rate of inflation in most years since the 2000s, with the exception of the global financial crisis and COVID-19 outbreaks, thanks to a series of consistent reforms toward a market-orientated economy and policies facilitating capital inflows. The dollarization of the Cambodian economy began with the almost complete destruction of the country’s monetary and financial system by the Khmer Rouge regime, which aimed to abolish the monetary economy. In Cambodia, dollarization has generally been evaluated positively as a factor that has contributed to economic stability and the development of the financial system. The chapter also presents an overview on the key concepts discussed in this book.
