Lao PDR maintains a managed floating exchange rate system. Licensed financial institutions are allowed to buy and sell foreign exchange at freely-determined rates, provided the spread between buying and selling rates is below 2%. All cash transfers require authorization from the Bank of the Lao PDR (BOL).

The International Monetary Fund’s Annual Report on Exchange Arrangements and Exchange Restrictions for Lao PDR, available only in hard copy, discusses currency exchange controls. The final link below summarizes regulations on borrowing and foreign exchange for ASEAN countries.

Import/Export of Currencies

Residents and nonresidents may bring in or take out foreign currency; amounts exceeding USD2,000 or its equivalent are subject to customs declaration and BOL approval. Nonresidents are only authorized to take out foreign currency up to the amount they declared upon entry. Import and export of Lao kip (LAK) in excess of LAK5 million requires BOL authorization.

Domestic/Foreign Currency Accounts

Residents and nonresidents are allowed to hold LAK and foreign currency accounts locally. Withdrawals exceeding USD10,000 or its equivalent require approval of authorized banks and must be reported to the BOL.

Borrowing/Lending

Domestic and foreign currency lending/borrowing among residents and nonresidents is controlled. All transactions are subject to BOL approval. Foreign investors are not permitted to borrow from domestic banks or on domestic markets.