Cambodia - Banking and securities
All banking institutions were nationalized by the Sihanouk government on 1 July 1964. The National Bank of Cambodia, a semi-autonomous government agency functioning as the sole currency authority, was charged with central banking responsibilities, including the control of credit. The decision by then Premier Lon Nol to permit foreign banks to do business in the country in early 1970 was a factor leading to his break with Prince Sihanouk and to the latter's overthrow in March 1970.
In April 1975, the Pol Pot government assumed control of the National Bank, and virtually all banking operations in Kampuchea were liquidated. The PRK government reintroduced a money economy, and by 1983 the National Bank of Cambodia (NBC) and a Foreign Trade Bank had been established. In 1991 the government created a state commercial bank to take over the commercial banking operations of the national bank. Banks in Cambodia include the Cambodian Commercial Bank, Cambodian Farmers Bank, and the Cambodian Public Bank. There were at least 50 commercial banks operating in 2001. The NBC has implemented new regulations for licensing banks, causing two banks to be closed. There is no securities trading in Cambodia.
The riel resumed its fall against the dollar in January and February of 1997 after briefly strengthening in December of 1996. It fell about 2% against the dollar in 2000 alone, trading at about 3,916.3 riels per dollar in 2001.The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $155.7 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $562.7 million.