You’ve just landed in Phnom Penh, the air is thick, and the first thing you see at the ATM is a choice that feels like a trick question: US Dollars or Cambodian Riel?
Most travelers reach for the greenbacks. It’s familiar. It feels safe. But honestly, the way the dollar to cambodian riel relationship works on the ground is way more nuanced than what your currency converter app tells you. If you aren't careful, you’ll end up with a pocket full of "useless" paper or lose 5-10% of your budget to invisible math.
Cambodia is technically a dual-currency economy, but that’s a bit of a simplification. It’s more like a "dollarized" system that’s desperately trying to find its own identity again.
The 4,000 Riel Myth
Walk into any Khmer market and ask for the price of a mango. The vendor might say "one dollar." You hand over a crisp $1 bill. If you ask for the price in Riel, they’ll say "four thousand."
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For decades, the unofficial "street rate" has been fixed at $1 = 4,000 KHR. It’s easy math. It’s convenient. But as of January 2026, the official National Bank of Cambodia (NBC) rate is sitting closer to 4,027 KHR per USD.
Does 27 Riel matter?
On a single coffee, no. But when you’re paying for a $200 boutique hotel stay or a week’s worth of dinners in Siem Reap, that spread adds up. Large supermarkets and upscale hotels often use a rate of 4,100 or 4,200 to cover their own exchange costs. If you pay in dollars at these places, you’re essentially paying a convenience tax.
Why Your Dollars Might Be Worthless
Here is the real kicker: Cambodia is the pickiest place on Earth for US currency.
If you have a $20 bill with a microscopic tear—we’re talking a millimeter—or a tiny ink stain, a local merchant will treat it like it’s radioactive. They will flat-out refuse it. Why? Because the banks won't take it from them. Since Cambodia doesn't mint the USD, they can't easily replace damaged bills.
The Cambodian Riel, on the other hand? You could practically use a piece of Riel that's been through a blender and taped back together. People will take it. This is why many expats now prefer carrying Riel for daily life; it’s just less stressful.
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The "Small Bill" Purge
Starting around 2020, the National Bank of Cambodia began a systematic push to get small US bills ($1, $2, and $5) out of circulation. You’ll rarely see them at ATMs now. Most machines only spit out $100 or $50 notes.
If you try to pay for a $2 tuk-tuk ride with a $100 bill, you’re going to have a bad time. You’ll likely get your change back entirely in Riel, and the driver might give you a slightly worse rate because you’ve just cleared out his entire cash float.
Practical Math: How to Handle Your Cash
You’ll basically always receive Riel as "change" for anything less than a dollar. Since there are no US coins in Cambodia, the Riel acts as the "cents."
- $0.25 is roughly 1,000 KHR.
- $0.50 is 2,000 KHR.
- $0.75 is 3,000 KHR.
When you’re at a local stall, it’s often smarter to pay in Riel. You avoid the "rounding up" that happens when vendors simplify the dollar to cambodian riel conversion. Plus, you won't have to worry about the "perfect condition" rule that applies to USD.
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The Bakong Revolution
If you want to look like a pro, stop using physical cash. Cambodia has leaped ahead of many Western countries with Bakong.
It’s a blockchain-based payment system run by the central bank. Almost every stall, from the high-end malls in Diamond Island to the lady selling grilled corn on a street corner, has a KHQR code. You scan it with your banking app (like ABA or Canadia Bank), and the system handles the conversion instantly.
For tourists, the "Bakong Tourists" app allows you to top up and pay via QR without needing a local bank account. It’s the easiest way to navigate the dollar to cambodian riel headache without carrying a brick of paper in your pocket.
Actionable Tips for Your Trip
Stop thinking of Riel as "monopoly money." It’s a stable, functional currency that makes life easier in the Kingdom.
- Inspect your dollars: Before you leave home, check every single US bill. If it’s not brand new and "library quiet," leave it at the bank.
- Withdraw Riel for daily spend: If the ATM gives you the choice, pick Riel for anything under $50. You’ll get 10,000, 20,000, and 50,000 notes that are accepted everywhere without a second glance.
- Keep a small USD "Emergency" stash: Carry a few $50 bills in a hidden waterproof pouch. These are great for paying for your visa on arrival or big-ticket items like Angkor Wat passes, where the dollar is still king.
- Use the 4,000 rule for quick math, but check the app for big buys: For a $1.50 water, just give them 6,000 Riel. For a $500 dental procedure or a luxury rug, check the actual 4,027+ rate to ensure you aren't overpaying.
By shifting your mindset to a Riel-first approach for small transactions, you protect your budget and save yourself from the "torn bill" heartbreak at the checkout counter. Stick to Riel for the street, and save the crisp, perfect Dollars for the big stuff.