The Cambodian Stock ExchangeJanuary 2024On the 15th, a short message was released informing investors that they can buy and sell stocks in US dollars from now on.

Short message content representationCambodia Stock Exchange Stock Trading ApplicationalreadyJoined byThe "USD settlement" function allows investors who open USD accounts to choose to settle in USD or continue trading in Cambodian Rille.

Previously, investors could only settle in Cambodian real. The stock exchange will continue to quote all listed company stocks in real and will convert the real quote into a US dollar quote based on the daily official exchange rate published by the National Bank of Cambodia.

After World War II, the establishment of the Bretton Woods system laid the foundation for an international monetary system centered around the US dollar. Even after the collapse of the system, monetary policy in countries around the world, regardless of their economic strength, is still more or less influenced by the policies of the Federal Reserve.

Economists use the proportion of the US dollar in circulation and deposits as an important indicator to measure a country's degree of dollarization. In order to develop the economy and stabilize inflation, some countries allow the US dollar to occupy a significant share in circulation, settlement, and reserves. Cambodia, on the other hand, is one of the few countries with extremely high levels of dollarization globally.

Previously, the Cambodian government was concerned that allowing settlement of securities transactions in US dollars would hinder the Cambodian economyThe process of de dollarization.

　“Dollarization”There are many benefits, such as attracting foreign direct investment, helping Cambodia integrate into the international trade and financial system, and avoiding currency depreciation. But excessive“Dollarization”The drawbacks are also very obvious, such as losing monetary policy autonomy and seigniorage.

Most countries will continuously strengthen the status of their own currencies and reduce the level of dollarization, especially after achieving certain results in economic development. enterIn the 21st century, multilateral financial institutions such as the International Monetary Fund, Asian Development Bank, and World Bank have warned Cambodia to gradually take measures to reduce dollarization levels.

However, Cambodia's determination to attract foreign investors seems to bethanDedollarization is more advantageous. December 23, 2023,Cambodian Prime Minister Hun Manai once posted on social media stating that Cambodia welcomes investors from all over the world to invest and start businesses.

according toIn 2024, Cambodia ranked first in foreign direct investment on the list of outstanding observers for foreign direct investment, with an index score of 96.11. Cambodia SecuritiesfromIndustry insiders believe that the opening up to allow investors to trade stocks in US dollars will encourage more foreign investorsEntering the market, increasing stock market trading volume and improving market liquidity.