The agreement between the National Bank of Cambodia (NBC) and UnionPay International is not to legalize the Chinese currency in the nation but rather to raise the prestige of the Khmer riel through cross-border QR payments, NBC’s deputy governor-general confirmed after concerns were raised over the legalization of the Chinese yuan in Cambodia.

At a press conference on Sunday, NBC deputy governor-general, Chea Serey, confirmed that the payment between Cambodia and China is not the issuing of Chinese yuan or Cambodian Riel, but instead an agreement for cross-border payments using QR code systems.

She explained that when a Chinese individual scans the KHQR in Cambodia, his RMB in the Chinese bank will be deducted, converted to KHR, and then transferred to Cambodia's bank.

Similarly, Cambodian people can use their KHR payment through a Bakong account when visiting China. By doing this, the use of the Cambodian riel will rise, and Chinese tourists will be encouraged to visit Cambodia due to the convenience of the payment.

She said that NBC plays a role in promoting the use of riels, therefore this Memorandum of Understanding (MoU) serves to promote more riel usage and not to legalize the RMB in Cambodia.

“I would like to clarify that this payment is not using the yuan, like using the dollar currency in Cambodia. This is a digital payment. Vendors in Cambodia will be paid in riel, not in yuan,” she said.

“So, it will encourage our Cambodian traders to save riel.”

She added that it also enhances the prestige of the Khmer riel as Cambodian people are able to make payments in other countries, such as Thailand.

On July 10, NBC and UnionPay International signed an MoU to enable cross-border QR payment between Cambodia and China through Bakong KHQR and UnionPay partners, including Alipay and WeChat.

Before cooperation with China, Cambodia has inked similar deals with Thailand. In addition, Cambodia aims to collaborate with Laos, India, and Vietnam for cross-border QR payments.

According to the NBC, approximately 600,000 people are using the Bakong app, and about 10 million are indirectly using it through partner banks and financial institutions.

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