||Foreign Currency Usage and Perception: Evidence from a Survey on Cambodian Households
ODAJIMA, KenKHOU, Vouthy
48 , 2017-01-31 , 一橋大学大学院経済学研究科
The household section is to present the real picture of dollarization of households, using survey-based data covering 2273 sample households from 25 provinces. We analyzed the foreign/local currency usage of households from various angles: income, expenditures, savings, borrowings, usage of currency notes, money changing, and perceptions/opinions. We found that: (1) wage/ salary income is highly dollarized, compared to other source of income; (2) the level of dollarization of expenditure differs significantly by type of products or services, and is particularly high for large transactions; and (3) there exist relatively wide mismatches in the currency composition of income/expenditures and income/borrowings. The household sector turns out to be less dollarized than the enterprise sector in terms of foreign currency usage for its activities. Thus, households hold, in general, positive perceptions with respect to policies or statements designed to promote the use of local currency. It may be easier to start implementing promotion programs targeting household activities. However, given the wide mismatch in currency composition of income/ expenditures and income/borrowings, some households were not aware of the risks of exchange rate changes. It may be necessary to make some efforts to raise the awareness of risks associated with exchange rate fluctuations through financial literacy education.