ABSTRACT
In this chapter, we describe the situation of Cambodian dollarization in enterprises using the novel dataset from the nationwide survey on 856 enterprises in 2017. We reveal that there is a difference in dollarization levels across region and enterprises. Compared with households (Chapter 2), the use of the US dollar is prevalent in enterprises. In addition, we examine determinants of wage payment in foreign currency. We find that the relationship between employees’ and employers’ preferences and choices of wage currency are different across firm sizes. In the smaller firms, employees’ preference is statistically associated with choices of wage currency, while employers’ preference is statistically associated with choices of wage currency in the larger firms. The finding suggests that dollarization has a heterogenous influence on firms’ currency choice.
