National Bank of Cambodia (NBC) Governor Chea Serey intensifies efforts towards de-dollarisation as the nation’s property market approaches a potential turning point .
With approximately 90% of economic transactions occurring in dollars, Cambodia remains one of Asia’s most dollarised economies. Recent statements by Governor Serey have brought renewed attention to how currency policy could reshape the real estate sector, creating both opportunities and challenges for investors, developers, and homebuyers.
Understanding the push to monetary sovereignty
Governor Chea Serey has been vocal about the limitations dollarisation imposes on the nation’s economic sovereignty. Speaking in September 2025, she explained that dollarisation forces Cambodia to absorb higher US interest rates, hampering recovery efforts and limiting the central bank’s ability to respond to domestic economic conditions. The NBC can only control the supply of its own currency, making the promotion of riel usage essential for enhancing economic resilience.
The central bank has pursued this goal through various initiatives, including the Bakong blockchain payment system, successfully increasing riel usage by 16 percent over the past two decades. However, real estate (where prices, mortgages, and rental agreements are predominantly dollar-denominated) represents one of the final frontiers in this currency transition.
Advantages for the real estate sector
Greater monetary policy control
De-dollarisation could enable the NBC to set interest rates that reflect domestic economic conditions rather than mirroring the US Fed’s decisions. This autonomy could translate into lower mortgage rates for local buyers, making ownership more accessible to middle-income locals currently priced out of the dollar-denominated market.
Strengthened local purchasing power
A more robust riel-based market could stimulate domestic demand and reduce foreign exchange risks for investors. Developers using local financing would benefit from more predictable costs, potentially spurring increased construction activity and job creation. With GDP growth projected between 4.9% and 6.4% for 2025, a domestically anchored real estate market could better capture this economic momentum.
Inclusive market development
Encouraging riel transactions could democratise the market, fostering greater participation from Khmer nationals and creating a more sustainable, inclusive growth model less dependent on foreign capital flows.
Potential risks and challenges for investors
Foreign investment concerns
Cambodia’s property market has attracted substantial international capital precisely because dollar pricing eliminates currency risk for foreign buyers. Any instability during the transition could trigger capital flight, with investors redirecting funds to competing Southeast Asian markets. The sector, already facing headwinds from delayed capital gains tax implementation and challenging market conditions, may struggle to absorb additional uncertainty.
Currency volatility issues
The riel’s historical volatility presents significant concerns for high-value property transactions. Buyers and sellers have long favoured dollars as a reliable store of value, particularly for higher worth assets. Convincing stakeholders to denominate substantial transactions in riel requires genuine confidence in currency stability, not merely policy directives.
Infrastructure transition costs
Banks and financial institutions have built their entire lending infrastructure around dollar-denominated mortgages. Transitioning these systems would be operationally complex and costly. Additionally, rental yields and property valuations have been benchmarked against dollar-based calculations for decades, making any currency shift technically challenging.
Navigating market transition
De-dollarisation presents the local property market with both significant opportunities and substantial risks. While enhanced monetary sovereignty could democratise property ownership and align the market with domestic economic realities, rushing the transition could destabilise a sector heavily dependent on foreign investment and dollar credibility.
Governor Chea Serey’s emphasis on gradual implementation is prudent. The optimal path forward likely involves a hybrid approach: encouraging riel usage for smaller transactions, domestic mortgages, and rental payments while maintaining dollar options for large-scale investments and foreign buyers.
Success depends on sustained confidence-building through consistent economic management, transparent regulation, and continued financial sector development. As the economy expands and the Bakong system matures, allowing the real estate market to evolve organically, rather than through forced disruption, will be crucial. The ultimate measure of success will be whether de-dollarisation enhances economic resilience without sacrificing the international credibility that has made Cambodia an attractive destination for property investment in Southeast Asia.
