FEARS that the acceptance of Chinese yuan in Cambodia may fuel the circulation of fake currency have been raised by tourism-related businesses.
The country’s Ministry of Tourism had earlier in June urged businesses to accept Chinese currency as part of its ‘China Ready’ initiative.
It hopes the move will help attract more Chinese – Cambodia’s second largest market after Vietnam – to the country, with the ultimate aim of luring two million tourists from China by 2020.
However, some are worried it could lead to more counterfeit notes circulating the country, as well as losing out on exchange rates.
Sok Chenda, general manager of Mekong Guesthouse, said: “We already have problem with US dollars that are not real. How will we know if the yuan is real? This could be a big problem.”
Kimhean Pich, CEO of Discover the Mekong, adds that problems could arise through fluctuating exchange rates and a lack of knowledge about the yuan.
“It needs much more thought than deciding one day to accept a foreign currency,” he said, adding that promotion of the country’s own currency, the riel, should take priority.
The US dollar currently accounts for an estimated 83 per cent of total transactions and more than 90 per cent of banking deposits in Cambodia.
