Cambodia De-Dollarization Reserch

The pros and cons of dollarization have once become the focus of discussion among scholars at home and abroad.Broadly speaking,dollarization refers to the phenomenon in which the currency in circulation traverses in the economic life of a country or region,gradually replaces the local currency by foreign currency,and performs the main functions of the currency.In a narrow sense,dollarization refers specifically to the process and phenomenon in which the US dollar replaces the local currency or circulates with the local currency in some economies other than the United Stales,and performs the relevant monetary functions.The development of dollarization is a manifestation of the trend of economic globalization.However,for countries with small economies and high degree of openness,it is easy for the US dollar to replace the local currency.Among Southeast Asian countries,Cambodia,Vietnam and Laos have higher levels of dollarization,with Cambodia having the highest degree of dollarization.In the long run,economies that are over-reliant on the US dollar are vulnerable to the economic risks of the United States.For example,after the outbreak of the international financial crisis in 2008,Cambodia,a highly dollarized country in Southeast Asia,was greatly affected.In the context of the Cambodian economy’s deep influence on the US dollar,this article is an in-depth study of Cambodia’s de-dollarization.The introduction to the first chapter of this paper puts forward the research questions,analyzes the purpose and significance of the research,introduces the technical routes and research methods,and proposes possible innovations and deficiencies.The second chapter mainly reviews the research status and relevant theoretical foundations at home and abroad;The third chapter mainly introduces the development history and use status of Cambodia’s domestic currency.On this basis,it analyzes the main performance and main reasons of Cambodia s economic dollarization.It finds that the dollarization is mainly reflected in the banking system deposit and production and operation.The main reason is Political instability,excessive dependence on international aid and a weak financial and financial system;The fourth chapter analyzes the impact of the dollarization of Cambodia’s economy and finds that the negative impact of dollarization on the economy is far greater than the positive impact,providing a realistic basis for the government to implement the de-dollarization policy;The fifth chapter analyzes the main obstacles of the Cambodian government’s implementation of the de-dollarization policy from the macro and micro levels;On the basis of the previous analysis,the sixth chapter proposes policy recommendations for the two governments of the Cambodian government and the National Bank of Cambodia to speed up the process of de-dollarization.