Laos to ban public from holding foreign currencies

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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

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Petch Petpailin

Petpailin, or Petch, is a Thai translator and writer for The Thaiger who focuses on translating breakingThai news stories into English. With a background in field journalism, Petch brings several years of experience to the English News desk at The Thaiger. Before joining The Thaiger, Petch worked as a content writer for several known blogging sites in Bangkok, including Happio and The Smart Local. Her articles have been syndicated by many big publishers in Thailand and internationally, including the Daily Mail, The Sun and the Bangkok Post. She is a news writer who stops reading news on the weekends to spend more time cafe hopping and petting dwarf shrimp! But during office hours, you can find Petch on LinkedIn and you can reach her by email at

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