Cross-Border Portfolio Investment

Generally, there are no foreign exchange controls. Investors can freely move capital in and out of the country through authorized intermediaries.

The National Bank of Cambodia (NBC) supervises financial markets and oversees foreign exchange transactions.

Capital Inflow

The following are considered nonresidents and are allowed to purchase bonds and money market instruments:

• Cambodian nationals living abroad for more than 182 days;
• Foreign individuals living in Cambodia for less than 182 days; and,
• Overseas branches of legal entities incorporated under local laws.

Capital Outflow

Nonresidents are required to open an account with a bank authorized by NBC in order to repatriate capital and earnings. Investments and transfers exceeding USD100,000 must be declared to NBC.

There are no restrictions on residents investing abroad. For more information, refer to the Law on Investment and Law on Foreign Exchange linked below. 

Currency Exchange Controls

Cambodia maintains a managed floating exchange rate system. The National Bank of Cambodia (NBC) adjusts the official rate daily to limit the spread between the official and market rates to less than 1%.

The Law on Foreign Exchange governs all foreign exchange operations relating to payments for commercial transactions, transfer, or capital inflows. There are no restrictions on foreign exchange operations, although transactions must be through authorized intermediaries. Further details are available at the links below.

The International Monetary Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions for Cambodia, available only in hard copy, discusses currency exchange controls.

Import/Export of Currencies

Cash exceeding USD10,000 or its equivalent in Cambodian riel (KHR) must be declared upon entry or departure. Export of cash by banks is subject to approval of the NBC.

Domestic/Foreign Currency Accounts

Residents are allowed to hold foreign currency accounts locally. No laws prohibit nonresidents to hold local or foreign currency accounts domestically. The NBC, however, may issue regulations to suspend temporarily enforcement of these provisions in case of a foreign exchange crisis.

Borrowing/Lending

Residents and nonresidents may freely borrow and lend, provided these are conducted through authorized intermediaries.