Cambodia's official currency is the riel, which is named after the fish used to make prahok, a fermented fish paste. The riel comes in denominations of 50, 100, 200, 500, 1000, 2000, 5000, 10.000, 50.000 and 100.000 (although the latter two are very rare). Coins are not used in Cambodia. The riel fluctuates around 4000 riel to a dollar.

Riels are mainly used in markets and to buy small items, like a bottle of water or to pay for small services like a moto or tuktuk ride (keep in mind, moto and tuk tuk drivers rarely have change, that is for foreigners, so be sure you have the exact amount ready).

US Dollars are widely accepted in Cambodia and actually serve as a second currency. US dollars are used for larger bills. Don't expect small shop venders to have change of anything more than a $5 note, and do expect small change in riel. Check your US dollars carefully as notes with a small tear are not accepted, especially the larger denominations of 5 dollars and more.

You don't need to change dollars into riel when enetering the country as you will inevitably pay a lot of things in dollars and receive change in riel, which you can use for smaller purchases.

Cambodia is a bit more expensive than neighbouring Vietnam and Thailand.

Why? Not sure, but it probably has to do with the dollar economy that Cambodia is (while neighbouring countries only accept their local currencies) plus Cambodia imports many items as the country doesn't produce much, or enough, itself. Even fruits and vegetables are imported!

Still, Cambodia is cheap, compared to the cost of living in Western countries. A few examples: a meal in a restaurant in tourist areas will set you back 4-5 dollars, a local restaurant may charge 1 to 2 dollars for a meal, a bottle of water costs 700 riel, a draught beer (or a can) can be as cheap as $0.75 (happy hour price, more common is 1 to 1.25 US dollar). Sigarettes are dead cheap, the local Ara brand costs only $0.25 a package, Marlboro is $1.00.

The last couple of years food prices in Cambodian markets have gone up sharply. This is a big problem for ordinary Cambodians who struggle to make ends meet. Mind you, a Cambodian policeman or teacher's official salary is only about $30 per month, that is... if they get paid.

These sharp market price increases are of course reflected in everything: from restaurant prices to the price of a tuktuk ride.

Money changers are concentrated at the markets and change all well known currencies into US dollars. They usually offer a better rate than the banks.

Traveler’s cheques

Traveler’s Cheques are well accepted in Cambodia and can be cashed at money changers and most banks.

Shop around for the best rates and insist that you get small to medium denominations.

Credit Cards

Credit cards are still not widely accepted in Cambodia, but are gaining in acceptance, mostly at more expensive venues.

ATM’s

Available in Phnom Penh, Siem Reap and Sihanoukville and now also in smaller towns like Battambang and Kampot.

ANZ Royal Bank has the most extensive network of ATM's, see the list on their website.

Western Union

Money transfers via Western Union are not cheap, so this should be a last resort, but this service is available in all major towns and cities.