03 Feb, 2025
Laos to Introduce New Rules to Strengthen Lao Kip, Reduce Reliance on Foreign Currency
In an effort to stabilize the national economy and reduce reliance on foreign currencies, the Bank of Laos and the Lao government are set to implement new regulations aimed at strengthening the value of the Lao kip.
The Foreign Exchange Management Department of the Bank of Laos (BOL) hosted a meeting to announce the upcoming regulations, with Chanthevivanh Keobounphanh, Deputy Director of the department, detailing the core objectives of the legislation, state media reported.
The government’s approach will focus on three key legislative areas: managing currency deposits, regulating the use of foreign currency, and establishing rules for transferring money from abroad.
The new measures are designed to encourage financial discipline among individuals who prefer to use foreign currency, ultimately promoting a more organized approach to spending and saving. This, in turn, is expected to contribute to greater economic stability and a stronger demand for the Lao kip.
Chanthevivanh emphasized that effective foreign exchange management requires collective responsibility across all sectors. He stressed the importance of reducing unregulated use of foreign currencies, which can destabilize the financial system, and shifting consumer behavior towards more responsible financial practices.
The government’s initiative includes several key strategies, such as the promotion of the slogan “In Laos, use only the kip,” and a strict requirement for residents to exchange currency only through authorized banks.
These efforts are in line with the 2022 Law on Foreign Exchange Management, which has already seen improvements to enhance the country’s foreign exchange management practices.
BOL has also prepared over 20 documents to support these measures, including a draft agreement on managing foreign currency deposit accounts and guidelines for disbursements and transfers from abroad.