Lao central bank takes stronger action to control rising exchange rates

Lao central bank, the Bank of the Lao PDR (BOL), is taking stronger action to control rising exchange rates after several key foreign currencies gained in value, and the prices of commodities surged.

Addressing the ongoing National Assembly's (NA) ninth legislature, which began its second ordinary session on Monday, the BOL Governor, Sonexay Sithphaxay, said one of the essential factors is managing the difference of exchange rates between banks and money exchange outlets.

"Currently, BOL, as the nation's central Bank, has signed a cooperation agreement with businesses involved in money exchange to be the bank's money exchange representatives. A total of 419 out of 550 exchange shops have already signed up with the bank," local daily Vientiane Times on Wednesday quoted Sonexay as saying.

He said some money exchange outlets had failed to follow the bank's guidelines, and their business licenses will be revoked and they would be unable to continue their operations.

"Through the implementation of this policy, the difference between exchange rates at the banks and in the market was improved. If we look at the exchange rate for the Lao kip with the Thai baht, it has leveled at below 1 percent and is close to zero percent, from the highest rate of 6.13 percent in early July," Sonexay said.