GRISELDA GAY G. SANTOS l January 30, 2024 l Manila Bulletin
Last week marked my very first visit to a museum where coins and notes were the focal point of learning. The Sosoro Museum is Cambodia’s Museum of Economy and Money. The museum is in the heart of Phnom Penh. It is an exhibit of 2000 years of Cambodia’s Monetary History. Quoting its website, it is indeed designed to provide a unique perspective of Cambodia’s economics and politics through history, through the lens of artifacts of coins and notes.
As early as the 1st century A.D., Funan (Cambodia’s name then) Cambodians have used their own coins to trade with countries like India and China. Cambodian coins then, were either made of silver and tin. Engraved in the Funan coin is the sun on one side and the Wat (temple) on the other side. Clearly, a reflection of the existing religion during the period, which is Hinduism. To serve as a wallet, these coins were punctured in the middle and a wire is inserted to carry it like a bracelet on a wrist. The exchange of coins and notes for goods was necessary for the ease of doing business.
Fast forward, during the Angkorian period in 802 A.D., there was no currency used. It was a barter and trade system where everything was paid in goods, mostly rice, oil, and cloth. Despite the absence of currency, the Ankor period had its share of glory and it lasted until the late 14th century. However, it is said that the fall of the Angkor kingdom can mostly be attributed to its lack of currency. At least twice in its history, Cambodia shifted to a no currency system which in the long run adversely affected its stability. A key observation is that, there is a direct correlation between the strength of a monetary system to political stability. Today, there is much confidence in the Cambodian riel. Much can be attributed to the prudent monetary policy in place.
From my visit in Sosoro Museum, my biggest takeaway is, there is more than meets the eye when looking at coins and notes. Today, there are 180 notes circulating in 197 countries and as for the coins, too many to keep track. Each of these coins and notes reflect the values, culture, beliefs history and pride of each country that issued them. For example, you look at a US dollar note, you will see the words, “in God we trust.” This is a recognition of a higher authority as one of the values that Americans have. Printed on the Cambodian 100 rial is the Buddha and the temple.
Again, another reflection of the existing belief in the country. In the Philippines, you can find in the old five peso note with an illustration of the Philippine Independence Day, to capture history. A common theme across notes is to feature faces of people that represent the pride, integrity, and sovereignty of the country. Beyond the illustrations, the exchange of notes and coins is a channel of trust across countries throughout their histories. Trust that parties are entering into a legitimate contract of exchange of goods and services.
With the evolution of technology where there is the emergence of virtual currencies, it begs the question, will virtual currencies carry the other non-economic value that physical notes and coins have? From an economic perspective, currencies are used as a medium of exchange, unit of account and to store value. Potentially, such economic value may still be present in virtual currencies if guided by the principles prescribed by the International Monetary Fund. But then, what about the other values carried by a physical coin or note? Can these be captured in a virtual currency? Are we ready to depart from the other values that a physical note and coin stand for?
“Culture opens our hearts to one another. And the currency in culture is not money, but trust.” – Yo-Yo Ma. However, money (physical coins and notes) can be the channel to capture and communicate culture, values, and history as a way of signaling good will and transparency. Its value is beyond just a storage of economic value. It is a way to initiate the journey of trust as both parties provide goods/services in exchange for physical coins and notes. It may be a one-off exchange but for the most part it can pave the way for a longer and deeper relationship built on trust.
Thank you, Secretary-General Phal Vandy for hosting the tour and for this learning. Arkun, Cambodia.
*** Griselda Gay Gloria-Santos is the Chair of the Financial Inclusion Committee of the Financial Executives Institute of the Philippines. She is also the Regional Director for Southeast Asia at Water.org, a global NGO co-founded by Matt Damon and Gary White. She holds an MBA degree from the Johns Hopkins University in Baltimore, USA. The opinion expressed herein does not reflect the views of these institutions, Water.org and Financial Executives Institute of the Philippines.