Dealing with U.S. Dollars & Riels
Riels and U.S. Dollars are both used in Cambodia.
Prices are both in United States Dollars and Riels. You can pay either in U.S. Dollars or Riels or a mix of U.S. Dollars and Riels.
If you pay in U.S. dollars you may be given change back in either U.S. Dollars (for the part greater than $1) and Riels (for the part less than $1). E.g. If you give a $5 bill to buy an item that cost $1.5 you will be given back $3 and the remaining in Riels.
2 exchange rates are used within a same transaction:
- 1 USD = 4200 Riels
- 1 USD = 4000 Riels
- The rate applied is always to the benefit of the seller (as a tourist you are often the buyer).
- An item costs $1. You can pay it in dollars or with 4200 riels (1 USD = 4200 Riels).
- An item costs $1.5. You give $2, the seller will give you back 2000 riels (1 USD = 4000 Riels).
- An item costs 5000 Riels. If you pay in USD you will pay $1 + 1000 Riels (1 USD = 4000 Riels)
While traveler's checks have become somewhat obsolete in many places due to the advent of ATM's, in Cambodia they are quite useful. You can cash U.S. dollar checks at most banks and money exchange places for a 2% charge, and get your money in U.S. dollars. This is no more expensive than using an ATM, once you figure in bank fees. Note that this is most useful if you can buy your checks without a commission, which some banks and other organizations (the AAA in the U.S., for example) offer their customers.
Banks here are good. If for any reason you wish to set up a bank account in Cambodia, ACLEDA Bank is well recommended. Dutch owned, and plugged into the global banking system (great if you are sending money transfers to Cambodia) the bank has an ethos of supporting small business and the community. It is widely regarded amongst the Asian banking community is a good high service, ethical establishment. However it may pay to shop around. The ANZ offers good service though slightly steeper requirements in terms of setting up a local account - and these are not the only two Western banks by any means. Do ask about their fee structures because they appear to be somewhat different from those in the West; for example charging a fee for money that arrives in these accounts. Their fee structure may reflect the fact that they cannot earn much money from relatively small transaction by locals.
For wiring money, there's a modern Western Union office near Central Market (they cash Travellers Cheques also) but in general terms WU is a very expensive way to send money. They take a big margin compared to the banks, and their exchange rates are also less favourable. Still, if you're stuck in Siem Reap and need your family as a lifeline - this might be the quickest way to go. Western Union transfers are instant while international bank transfers take 2-4 working days.