A draft law on foreign exchange management was presented to the ongoing 3rd Ordinary Session of National Assembly on Jun 28 by Mr. Bounleua Sinxayvoravong, Governor of Bank of the Lao PDR.

The amended draft law on foreign exchange management consists of 9 parts, 8 chapters, 62 articles including 32 amended.

Mr. Bounleua said that the revision of the law will allow foreign exchange businesses in the Lao PDR to be managed in a more systematic manner in line with current economic conditions.

This law was devised on the condition that the Lao PDR has a wide range of trade relations, significant foreign investment and a large amount of foreign currencies flows into the country. In addition to the enactment of this law, the Bank of the Lao PDR has also developed 10 sub-laws.

The review of the law on foreign exchange management and the relevant legislations used for almost 7 years has suggested that there have been many positive changes in Lao society with more people tending to use local currency than foreign ones as the ratio of foreign currencies in bank accounts has decreased from 68.01% in 2005 to 59.17% in 2021.

The law will help centralize foreign exchange management and make exchange activities bank-based.

BoL governor said that the law revision aims to ensure Laos has an effective tool for foreign exchange management, make foreign currency management more centralized, create optimal benefits for the nation and the people, minimize the use of foreign currencies among general public members, and contribute to strengthening the financial system of the country.

Source: Lao News Agency