Understanding the historical exchange rates between the Cambodian Riel (KHR) and the US Dollar (USD) is essential for travelers, investors, importers, exporters, and financial analysts with interests in Cambodia’s evolving economy. While the USD is widely used in Cambodia—especially in business and tourism—the Riel remains the official currency and plays a significant role in everyday transactions.
This article provides a detailed overview of the KHR to USD exchange rate trends throughout 2025, based on verified daily data. We’ll explore fluctuations, analyze patterns, and offer context to help you make informed financial decisions.
Overview of the Cambodian Riel and US Dollar Relationship
Cambodia operates under a dual-currency system, where both the Cambodian Riel (KHR) and the US Dollar (USD) are accepted. The USD dominates larger transactions such as real estate, vehicle purchases, and hotel bookings, while the Riel is commonly used for small retail purchases and local services.
Despite this informal dollarization, the National Bank of Cambodia (NBC) actively manages the Riel’s value and monetary policy. The exchange rate between KHR and USD reflects not only market forces but also central bank interventions aimed at maintaining economic stability.
Key Exchange Rate Trends in 2025
Throughout early to mid-2025, the Cambodian Riel has shown relative stability against the US Dollar, with minor fluctuations influenced by regional economic developments, trade balances, and inflation trends.
Below is a summary of notable movements:
- January 2025: The Riel began the year at 1 KHR = 0.0002474 USD on January 13th, reaching a low of 0.0002474 before gradually strengthening.
- By January 21st, the rate improved to 0.0002480, indicating slight appreciation.
- On February 3rd, an unexpected spike occurred, with 1 KHR = 0.0002510 USD, marking one of the strongest values of the year so far.
- From March through April, the rate stabilized around 0.0002494–0.0002503, showing resilience amid global market volatility.
- In May, values hovered near 0.0002491–0.0002501, demonstrating consistent performance.
- As of June and July 2025, the exchange rate remained within a tight range of 0.0002488 to 0.0002498, reflecting macroeconomic balance.
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Factors Influencing KHR/USD Exchange Rates
Several key factors contribute to the movement of the Cambodian Riel against the US Dollar:
1. Trade Balance and Export Performance
Cambodia’s export sectors—particularly garments, footwear, and agricultural products—play a major role in foreign exchange inflows. Strong export performance increases demand for local currency, supporting Riel strength.
2. Foreign Direct Investment (FDI)
High levels of FDI, especially in real estate and infrastructure, often bring in USD, increasing liquidity but potentially reinforcing dollarization unless carefully managed.
3. Monetary Policy by the National Bank of Cambodia
The NBC uses tools like reserve requirements and liquidity management to stabilize the Riel. Its Bakong digital payment system has also enhanced control over domestic transactions and reduced reliance on cash.
4. Regional Economic Conditions
Neighboring economies like Thailand, Vietnam, and China impact Cambodia through trade and tourism. Currency shifts in these countries can indirectly affect KHR valuation.
5. Global USD Strength
Since many commodities and international loans are priced in USD, global trends in US interest rates and Federal Reserve policy influence emerging market currencies like the Riel.
Monthly Breakdown of KHR to USD Rates (2025)
January 2025
- Early month: ~0.0002474–0.0002476
- Mid-month improvement: reached 0.0002486 by January 31
- Trend: Gradual appreciation
February 2025
- Average rate: ~0.0002491
- Peak on Feb 3: 0.0002510 (notable surge)
- End-of-month: settled around 0.0002493
March 2025
- Range: 0.0002491 to 0.0002498
- Stable with minor oscillations
- Strongest day: March 14 (0.0002498)
April 2025
- High consistency around 0.0002497–0.0002501
- Multiple days recorded 0.0002500, indicating temporary parity strength
- April 3–4: peak stability at 1 KHR = 0.00025 USD
May–July 2025
- Continued narrow band fluctuation
- Most common rate: ~0.0002491–0.0002498
- No major shocks or devaluations observed
- July 12: closed at 1 KHR = 0.0002490 USD
Understanding Exchange Rate Notation
When you see "1 KHR = 0.000249", it means one Cambodian Riel equals approximately one-fourth of a tenth of a cent in US dollars. Due to the low value of the Riel relative to the USD, exchanges are typically quoted with five decimal places for accuracy.
For practical purposes:
- 1,000 KHR ≈ $0.25 USD
- 5,000 KHR ≈ $1.25 USD
- 1 USD ≈ ~4,016 KHR (average mid-2025)
This makes mental calculations important when handling cash in Cambodia.
Frequently Asked Questions (FAQ)
Q: Why doesn’t Cambodia use only the US Dollar officially?
A: Although widely accepted, full dollarization could limit monetary policy control. The government aims to promote national identity through the Riel while benefiting from USD stability.
Q: Is it better to carry USD or KHR when traveling to Cambodia?
A: It’s advisable to carry US Dollars in cash (especially $1, $5, $10 bills) for larger expenses, while keeping smaller denominations of Riel for local markets and transport.
Q: How often do KHR/USD rates change?
A: Rates can change daily based on market conditions. However, due to central bank oversight, dramatic swings are rare.
Q: Can I get a better exchange rate in Cambodia or before traveling?
A: Local exchange booths in cities like Phnom Penh and Siem Reap often offer competitive rates. Banks and authorized dealers provide reliable services without significant premiums.
Q: Does inflation affect the Riel’s value?
A: Yes. Moderate inflation is monitored closely by the NBC. High inflation could erode confidence in the Riel and increase dependency on the USD.
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Practical Tips for Managing Currency Exchange
- Always check the current rate before exchanging money.
- Avoid street vendors offering “better rates”—they may shortchange or provide counterfeit bills.
- Use ATMs sparingly; fees can be high, though they dispense local currency at decent rates.
- Keep some small USD bills for tips and minor purchases.
- Consider using mobile wallets linked to Bakong for seamless digital transactions within Cambodia.
Conclusion
The Cambodian Riel has maintained a stable trajectory against the US Dollar throughout 2025, supported by sound monetary policy and steady economic growth. While full dollarization remains a topic of discussion, efforts to strengthen the Riel continue through digital innovation and financial inclusion initiatives.
For travelers, businesses, and investors alike, understanding these exchange patterns ensures smarter financial decisions when engaging with Cambodia’s dynamic economy.
Whether you're planning a trip, managing cross-border payments, or analyzing Southeast Asian markets, keeping an eye on KHR/USD trends offers valuable insight into one of Asia’s fastest-growing economies.
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