Cambodian Dollarization Its Policy Implications for LDCs’ Financial Development

Cambodian Dollarization: Its Policy Implications for LDCs’ Financial Development by Hidenobu Okuda, published by Taylor & Francis in 2023, offers an in-depth examination of dollarization in Cambodia, a country that has experienced significant economic and financial growth since 1998. This edition, comprising 224 pages, utilizes micro-level data gathered from nationwide surveys conducted by the National Bank of Cambodia and JICA Ogata Sadako Research Institute in 2014 and 2017 to present a comprehensive analysis of the structures and mechanisms of dollarization across households, companies, and financial institutions.

Readers will find a detailed exploration of the historical development of dollarization in Cambodia, alongside international comparisons with other countries that have undergone similar processes. The book employs econometric analysis to assess the impact of the National Bank of Cambodia’s digital payment platforms, particularly Bakong, on the usage of both local and foreign currencies. This study highlights the interplay between dollarization and financial development in low- and middle-income countries, suggesting that while dollarization can promote financial growth, policies aimed at separating the two are essential to manage its effects. This work is relevant for students, researchers, and policy-makers interested in the fields of economics and finance, particularly in the context of Southeast Asia.