BOL Signs MoU with Commercial Banks to Establish Centralized Foreign Exchange Market

08/08/2024 11:41
Email Print 2231
KPL (KPL) The Bank of the Lao PDR (BOL) signed on August 5 a Memorandum of Understanding (MoU) with commercial banks to establish a centralized foreign exchange market. The signing ceremony was attended by BOL Acting Governor Ms. Vathana Dalaloy, President of the Lao Bankers’ Association Mr. Phouthasay Sivilai, and representatives from commercial banks, relevant offices, and the private sector.


(KPL) The Bank of the Lao PDR (BOL) signed on August 5 a Memorandum of Understanding (MoU) with commercial banks to establish a centralized foreign exchange market.
The signing ceremony was attended by BOL Acting Governor Ms. Vathana Dalaloy, President of the Lao Bankers’ Association Mr. Phouthasay Sivilai, and representatives from commercial banks, relevant offices, and the private sector.
Mr. Soulisack Thamnuvong, Head of the Monetary Policy Department of the BOL, attributed the initiative to the need to address the imbalance between the demand and supply of foreign currencies in the economy. This imbalance is caused by higher demand for foreign currencies to pay for imported goods and services, high levels of foreign debt, the depreciation of the Lao Kip, and rising inflation.
He noted that these problems have inevitably impacted the lives of the Lao people. Moreover, foreign exchange trading in the black market has made it difficult to monitor and collect data on transactions outside the system, hindering the BOL’s policy implementation.
“To maintain the stability of the national currency, manage the exchange rate towards greater stability, and encourage the public to use the formal exchange system, the BOL has proposed the establishment of a centralized foreign exchange market. This platform will allow individuals and legal entities to buy and sell foreign currencies conveniently while making it easy for relevant authorities to monitor,” said Mr. Soulisack Thamnuvong.
Mr. Phouthasay Sivilai, President of the Lao Bankers’ Association, emphasized the implementation of the system during its pilot phase. The Lao Bankers’ Association will coordinate with relevant departments of the BOL to develop training plans and user manuals for commercial banks that have signed the MoU. This will ensure that they are well-prepared and understand the actual implementation.
Currently, the BOL has completed the conceptual design of the market, held a meeting to consult and brainstorm with commercial banks that meet the criteria to become shareholders in the legal entity, and set objectives, outlined concepts, and established conditions for the establishment and transaction model.
Fifteen banks are expected to sign the MoU on the establishment of the centralized foreign exchange market.
After signing the MoU, the BOL and commercial banks will focus on researching and developing the system and establishing legal entities to realize the exchange market in the near future.
KPL

ຂ່າວອື່ນໆ

    • MICT and Central Committee Convene to Advance Organizational RestructuringGeneral

      MICT and Central Committee Convene to Advance Organizational Restructuring

      4/21/2025 12:13:12 PM

      The Ministry of Information, Culture and Tourism (MICT), in coordination with the Central Committee’s Secretariat, convened a high-level meeting to absorb and align with new directives on organizational restructuring. The session was held in Vientiane on 18 April underchairmanship of Mr. Thongsalit Mangnomek, Secretary of the Central Party and Head of the Central Office, who also leads the Organizational Restructuring Committee.

    • Saravane Ramps Up Aid for Families Affected by StormGeneral

      Saravane Ramps Up Aid for Families Affected by Storm

      4/21/2025 10:45:01 AM

      Saravane Province, Laos – Authorities in Saravane Province and Lakonepheng District are accelerating relief efforts for families impacted by a severe storm that struck on April 9. The local government has focused on repairing and rebuilding damaged homes, aiming to quickly restore normal living conditions. So far, approximately 90% of affected homes have been repaired.

    • Laos Reports Fewer Road Fatalities During  Lao New Year 2025General

      Laos Reports Fewer Road Fatalities During Lao New Year 2025

      4/20/2025 10:25:11 AM

      Laos recorded a decline in traffic-related deaths during the Lao New Year 2025 celebrations, with 26 fatalities reported between April 11 and 17 — down from 33 during the same period in 2024.

    •  Attapeu Celebrates Gold Panning Festival for Lao New Year B.E. 2568General

      Attapeu Celebrates Gold Panning Festival for Lao New Year B.E. 2568

      4/18/2025 12:59:50 PM

      Attapeu Province hosted its traditional gold panning festival at Kengxay Beach, Ban Lak 3, Samakhixay District, to mark the end of B.E. 2567 and welcome the Lao New Year B.E. 2568. The event was attended by Attapeu Provincial Governor Lt. Gen. Vanthong Kongmany, along with provincial and district leaders, as well as local residents.

    • Vietnamese Embassy joins traditional Lao New Year celebration in Russia General

      Vietnamese Embassy joins traditional Lao New Year celebration in Russia

      4/18/2025 12:39:48 PM

      (KPL/VNA) A delegation from the Vietnamese Embassy in Russia, led by Ambassador Dang Minh Khoi, visited the Lao Embassy in Moscow on April 16 to extend New Year greetings on the occasion of Boun Pi Mai, the traditional New Year festival of Laos.


Top