PHNOM PENH, Cambodia – As Cambodia celebrates the anniversary of the Khmer riel, the Cambodia Microfinance Association (CMA) highlights the microfinance sector’s growing role in strengthening monetary sovereignty and driving the nation’s riel promotion agenda. By steadily increasing the adoption of local currency, the sector has built a robust foundation for national economic stability and financial inclusion.

Driving the National Agenda: Microfinance as an Engine of Riel Promotion

Data from the end of 2025 underscores a clear trend: the microfinance sector is leading the transition to the Khmer riel, providing a robust "Economic Shield" for the nation’s most vulnerable borrowers.

• Loan Leadership: By the end of 2025, microfinance loan balances reached 6 billion US dollars, with an impressive 23.29% (approx. 1.4 billion US dollars) denominated in Khmer riel, serving 1.53 million clients based on data of CMA and CBC. In contrast, the total loan balance of the banking industry stood at 62 billion US dollars, with only 13.71% denominated in Khmer riel.
• Growing Trust in Deposits: Total deposits held by Cambodia's four Microfinance Deposit-taking Institutions (MDIs) reached 3 billion US dollars as of 2025. Of this amount, 13.1% (393 million US dollars) is held in Khmer riel by 2.2 million depositors, signaling deep-rooted public confidence in the national currency's long-term value.
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The "Riel Shield": Stability Amidst Global Volatility

The CMA has branded this progress as the “Riel Shield,” a safeguard for Cambodia’s economy amid global financial uncertainties. The shield provides three layers of protection:

1. Eliminating Exchange Risk: Since most rural households and micro-entrepreneurs earn in Khmer riel, KHR-denominated loans eliminate the "Exchange Rate Trap." This ensures that monthly repayments remain stable even when the US Dollar fluctuates against global currencies.
2. Empowering Monetary Policy: Higher Riel circulation allows the National Bank of Cambodia (NBC) to more effectively manage inflation and interest rates, ensuring that the Cambodian economy is governed by domestic needs rather than external policies set by US Federal Reserve.
3. Digital Acceleration: The shift is being accelerated by the Bakong system, which saw Khmer riel transactions surge to 771 million in 2025—now accounting for nearly 60% of all digital transaction volume in the Kingdom according NBC.

"While the Khmer riel is a symbol of our national identity, it has now become the bedrock of our economic security," says Ms. Dith Nita, Chairwoman of the CMA. "By prioritizing the local currency, we are anchoring Cambodia’s financial future in self-reliance—ensuring that our growth is fueled by our own resources and remains resilient against global volatility".