Laos to ban public from holding foreign currencies

The Central Bank of Laos plans to ban residents from holding foreign currencies to address problems such as inflation, and the depreciation of the Kip.

The Laotian Times yesterday reported that the Governor of the Central Bank of Laos, Sonexay Sitphaxay, promised to solve foreign exchange problems during a press conference on May 27. The governor acknowledged public concern regarding the country’s financial stability and says the central bank will launch a number of different policies to ensure that foreign currencies enter the Lao economy at an appropriate volume.

Aside from the plan to ban possession of foreign currencies in public, the bank plans to issue special bonds with high interest rates to reduce cash circulation. The bonds will be launched next month.

The Central Bank of Laos says it will work closely with the Ministry of Public Security to suppress any agencies or individuals involved in any illegal exchange activities that might affect the country’s financial stability. The bank will also improve the managing and suppling processes of foreign currency related to importing necessary goods.

The Central Bank Governor insisted they will continue to facilitate measures to ensure that foreign currencies are operated under the banking system and government measures.

SOURCE: Khaosod | The Laotian Times