Pm Hun Manet Instructs National Bank To Reconsider Conditions For Stained Or Slightly-Torn U.S. Dollar Bills
In a significant move to enhance the tourist experience, Prime Minister Hun Manet has directed the National Bank of Cambodia (NBC) to review and amend its policies regarding the circulation of old or slightly-torn U.S. dollar banknotes.
The directive comes after the Prime Minister’s recent visit to Pub Street, a popular nightlife area in Siem Reap, where he received complaints from tourists about the problematic nature of using worn U.S. dollar bills.
“Some problems are small, but annoying to tourists, such as the difficulty in using U.S. dollar bills that are dirty or a little torn," Prime Minister Manet stated.
He emphasized the need for the National Bank of Cambodia (NBC) to review the existing conditions applied to such banknotes to facilitate spending by tourists while stressing that, although counterfeit detection is crucial, perfectly genuine but slightly damaged banknotes should not be deemed worthless.
“Counterfeit banknote is one thing, but some banknotes are just a bit broken, old, ripped or stained. Anyway, they are rejected or their value is depreciated because the banks do not accept them. I hope our National Bank will work on this issue urgently.” the prime minister noted.
Nbc’s Four Emergency Mechanisms
In response, the NBC issued an announcement on July 21, 2024, outlining four emergency mechanisms aimed at mitigating the issue:
- Acceptance of Stained or Slightly-Torn Bills: Commercial banks in Siem Reap must accept old or slightly-torn U.S. dollar bills, provided they aren’t counterfeit, without charging service fees.
- Exchange Measures for Very Old Notes: When dollar banknotes are too worn for circulation, commercial banks in Siem Reap should exchange them for new notes at the National Bank without incurring service fees or the delay of sending these notes to their headquarters in Phnom Penh.
- USD notes in ATM Withdrawals: All banking and financial institutions in Siem Reap are mandated to place $20 and $50 notes in ATMs rather than $100 notes, facilitating easier tourist spending. All types of U.S. dollar banknotes will still be accepted in deposit machines.
- Public Awareness Campaign: An extensive advertising campaign will be launched to inform money exchange traders, hotel and restaurant owners about these new measures and encourage their cooperation with the NBC.
Encouraging Technological Adaptations
NBC also added guidelines to further support the tourism sector by promoting the use of the “ Bakong Tourist App ,” which can help international tourists with their payments. Additionally, the NBC plans to work with specific counting machines and companies to set a consistent standard for the condition of banknotes between the National Bank and commercial banks.
These initiatives reflect the Cambodian government’s commitment to enhancing the hospitality experience for international visitors and addressing even the minor obstacles to ensure hassle-free experience for visitors. By simplifying the process for handling stained or slightly-torn U.S. dollar bills, Cambodia aims to improve convenience and comfort of its tourists, fostering a more welcoming environment for all.
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Sources:
Official Announcement Document from National Bank of Cambodia
H.E. Hun Manet Official Facebook Page
