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In Cambodia there are two currencies in circulation, the US Dollar and the Cambodian Riel, most places use the US Dollar primarily, and the Riel as change because there are no coins (USD or otherwise) in circulation. The Cambodian Riel is used in the market, street vendors and small Khmer shops, it is usually wise to carry some of each currency. When visiting tourist areas such as Angkor or the Choeung Ek Killing Fields, there are many beggars, often landmine victims who greatly appreciate any spare Riel you may offer, and remember in Cambodia there is no social security and victims of landmines do not have much scope for employment and are somewhat outcast from society, a 1000 Riel note is worth about US$0.25 or £0.13, but to them it will go a long way.
The exhange rate is about 4035 Cambodian Riel to 1 dollar.
Cambodia operates a primarily cash economy, credit cards have only appeared in Cambodia in recent years and are not used much in the country, although their use is ever increasing with many Khmer people now able to get credit. Large hotels and restaurants will tend to accept them, but it is best to have cash as some places will only accept this. As of the last few years, ATM cash machines are available in Phnom Penh for withdrawing money and recently ATM's have been introduced in Siem Reap, which makes things a lot easier for both visitors and locals.
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