In a major move supporting Cambodia’s long-term monetary agenda, KB PRASAC Bank has officially announced that it begins paying all employee salaries exclusively in Khmer Riel (KHR) from October 2026 onwards.
The transition, which moves staff payroll away from the U.S. dollar (USD), marks one of the most significant private-sector commitments in accelerating national dedollarization efforts led by the National Bank of Cambodia (NBC).
For decades, Cambodia’s financial system has operated under high dollarization. While foreign currency liquidity previously aided economic stability during early reconstruction periods, the high reliance on USD has limited the central bank’s monetary policy effectiveness and exposed the domestic market to external currency volatility.
The decision by KB PRASAC Bank directly aligns with recent NBC initiatives that encourage businesses, financial entities, and payment networks across Cambodia to prioritize the usage of the local currency.
“As a financial institution rooted in Cambodia’s growth, leading by example in adopting the national currency for internal operations is a natural responsibility,” said a senior management of KB PRASAC Bank. “Transitioning our payroll to Khmer Riel reflects our strong belief in the resilience and future of the Cambodian economy.”
The transition comes at a time when digital payment ecosystems in Cambodia has grown significantly, making KHR transactions far more seamless. The rapid adoption of the NBC’s Bakong system—the nationwide blockchain-based mobile payment platform—and cross-bank KHQR digital payment networks has drastically reduced reliance on physical cash and exchange friction for everyday purchases.
By distributing salaries directly into KHR savings account, employees can easily: Pay for goods, utilities, and dining via instant KHQR merchant scans; Execute instant domestic transfers without incurring currency conversion fees; Access KHR savings and deposit products that often offer higher interest rates for KHR holdings compared to USD deposits.
KB PRASAC Management stated that this bold step will create a ripple effect across the broader private sector. Practically, corporate entities in banking, hospitality, and manufacturing preferred paying staff in US dollars due to employment contracts specify salaries in US dollars. However, institutional shifts within the financial sector itself could encourage corporate banking clients and other companies to follow suit.
