Cambodia - Foreign Exchange Controls Cambodia - Foreign Exchange Controls
Under the 1997 Foreign Exchange Law, there are no restrictions on foreign exchange operations, including the purchase and sale of foreign exchange and the transfer of all types of international settlements. The government intervenes, however, to promote macroeconomic stability by managing the exchange rate, which is very closely pegged to the U.S. dollar. The current exchange rate in May 2016 was 4,063 riel to the U.S. dollar, but the use of U.S. currency predominates in large transactions. The law stipulates that only authorized intermediaries may perform these transactions. In reality, many unregistered money exchangers perform currency exchange services. The authorized financial intermediaries are lawfully established banks, which are required to report to the National Bank of Cambodia on the types of transfers and outflow or inflow of capital. In Phnom Penh, there are 75 licensed moneychangers and 47 authorized moneychangers. In the provinces, there are two licensed and 1,886 authorized moneychangers.
Investors are not required to report on transactions of funds. The burden rests solely on the bank as the authorized intermediary. Article 13(1) of the Law on Foreign Exchange requires the import or export of any means of payment equal to or exceeding $10,000 or an equivalent amount to be reported to Customs authorities at the relevant border crossing point, and the Customs authorities should transmit this information on a monthly basis to the National Bank. While foreign exchange transfers are not currently restricted, the law does allow the National Bank to implement exchange controls in case of a foreign exchange crisis; however, the law does not clearly specify what would constitute a crisis. There are currently no restrictions on the repatriation of profits or capital derived from investments either in Cambodia or on most transfers of funds abroad.