(KPL) The Lao government has put many measures to manage and maintain monetary stability, in particular, it has implemented monetary policy by increasing the basic interest rate, the ratio of compulsory deposits and the issuance of bonds of the Bank of the Lao PDR to 9,504.94 billion kip.

The​government has implemented an exchange rate policy in a more flexible direction and allocated foreign currency resources for fuel imports, created a department at the Bank of the Lao PDR to manage foreign currency and tried to establish a representative office of the Bank of the Lao PDR in two special economic zones, revised the law on foreign currency management, ended the renewal of all business and currency exchange licenses at the beginning of 2023.

During 2 and a half years, the amount of money in circulation grew by an average of 27.58% per year (the 5-year plan does not exceed 20% per year), the average inflation rate increased at the level of 18.24% (the 5-year plan average did not exceed 6%), the exchange rate of kip against the dollar weakened by an average of 18.32% per year.

which fluctuates beyond the set limit (5-year plan fluctuating within ±5%), business bank deposit mobilization increased at 89.21% of GDP (5-year plan 60% of GDP at the end of 2025), credit of the banking system at the level of 60.44% of GDP (5-year plan: 49% of GDP at the end of 2025).

The​controlling the ratio of non-performing loans (NPLS) of the entire banking system at an average level of 2.4% within the defined plan (5-year plan at an average level of no more than 3% of the total credit balance).

KPL