Although the riel regained some ground against the US dollar towards the end of 2010, the Cambodian currency depreciated by 1.1% on an annual average basis. The riel will generally remain under downward pressure in 2011-12, owing to the large deficit on the current account. The NBC will intervene periodically to support the currency by selling foreign-exchange reserves, but this will do no more than slow the riel's rate of depreciation, and we expect the currency to weaken by an average of 0.5% a year during the next two years. Given the continuing lack of confidence in the riel, the US dollar will remain the currency of choice in Cambodia for trade and investment.