Foreign exchange under Cambodian law

Cambodian laws and regulations that govern forward foreign exchange include:

  • Law on the Organization and Conduct of the National Bank of Cambodia 1996
  • Law on Foreign Exchange 1997
  • Investment Law 2003
  • Prakas (government directive) on Accounting Process for Foreign Currency Transactions
  • Prakas on Management of Foreign Exchange Dealers 1998
  • Prakas on Money Changer Authorization
  • Prakas on the Monitoring of Banks’ and Financial Institutions’ Net Open Position in Foreign Currency 2007

FX in CambodiaGenerally, people are free to denominate their transactions in foreign currencies in Cambodia. The US dollar, in particular, is freely traded throughout the country.

The Investment Law guarantees that we may freely remit foreign currencies abroad for the purposes of the following:

  • payment for imports and repayment of principal and interest on international loans;
  • payment of royalties and management fees;
  • remittance of profits;
  • repatriation of invested capital upon dissolution of an investment project.

Foreign currencies can be freely purchased through the banking system without any restrictions, according to the Foreign Exchange Law of Cambodia. However, the law (Article 5) requires these transactions to be performed by authorized intermediaries.

These intermediaries refer to duly-established banks in Cambodia and they are required to report transactions of more than USD 10,000 to the National Bank of Cambodia. There is no legal requirement for the investor sending or receiving funds to make a report on the transaction.

About the Author

Over 12 years of legal experience working with both local and international organizations, plus law education from both Cambodia and Japan. Contact Samphy about your legal question: ysamphy@nitesastra.com

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