ABSTRACT
In the process of Cambodian dollarization, payment and real dollarization have been prevalent in addition to financial dollarization. This chapter investigates how Cambodian households use foreign currency and local currency in their daily transactions using a novel dataset from a nationally representative household survey. This chapter reveals that there is a regional difference in the use of foreign currency, and households in rural areas prefer and are actually using local currency more than households in urban areas. The findings suggest that promoting financial inclusion will be a good strategy to reduce the ratio of US dollars in the banking sector.
