A genuinely bi-currency market
Cambodia is one of the most dollarised economies in the world. Salaries, rent, imports, and B2B invoices are commonly priced in USD, while small retail, taxes, and government fees are denominated in KHR. Many businesses operate dual price lists and accept either currency at the till.
This makes daily life convenient but creates real accounting complexity. A single transaction can involve a USD invoice, a KHR cash receipt, and a USD bank deposit — three legs, two currencies, one journal entry.
Choosing a functional currency
Each entity should select a functional currency that reflects the primary economic environment in which it operates. For most SMEs in Phnom Penh and Siem Reap this is USD; for businesses serving rural Cambodia or the government, KHR is often more appropriate.
Once chosen, every other currency is treated as foreign — including the local Riel if your books are in USD. Translation differences flow through P&L or other comprehensive income depending on the nature of the item.
Practical tips
Reconcile cash drawers daily in both currencies. Set a clear policy for which rate applies — MEF average is the most defensible. And configure your accounting system to handle multi-currency natively rather than converting outside the ledger.
អត្ថបទនេះមានប្រយោជន៍មែនទេ? ចែករំលែកជាមួយក្រុមរបស់អ្នក ឬ ផ្ញើមតិមកយើង។