KPL
(KPL) Acting Governor of the Bank of the Lao PDR (BOL), Ms. Vatthana Dalaloy, addressed critical economic concerns raised by members of the National Assembly during its ongoing 8th Ordinary Session on Monday.
Acting Governor of the Bank of the Lao PDR , Ms. Vatthana Dalaloy
(KPL) Acting Governor of the Bank of the Lao PDR (BOL), Ms. Vatthana Dalaloy, addressed critical economic concerns raised by members of the National Assembly during its ongoing 8th Ordinary Session on Monday.
The discussions centered on solutions to pressing issues, including inflation, exchange rate instability, persistent challenges with commodity prices, foreign reserves, and government funding for production promotion.
Ms. Vatthana outlined the BOL's strategy for 2024, emphasizing the continuation of a tight monetary policy aimed at stabilizing the economy and mitigating inflation. She highlighted key measures including issuance of BOL bonds, centralizing government deposits within the BOL to improve liquidity management, and maintaining the Lao kip's exchange rate in alignment with market mechanisms while ensuring flexibility under state oversight.
To improve foreign exchange transparency and accessibility, the government has established a centralized Lao Foreign Exchange (LFX) market by consolidating commercial banks to form a foreign exchange company.
Legal frameworks have also been strengthened with new legislation to manage foreign currency inflows and enhance financial stability by integrating more foreign currency revenues into official systems.
Gold Bank
In collaboration with PTL Holding, the government has launched a gold bank as part of its strategy to diversify financial services and strengthen the economy.
The Gold Bank introduces innovative services, including gold savings accounts and gold-backed loans, offering new financial options for individuals and businesses. It also aims to manage risks associated with gold price volatility, increase access to capital for sectors lacking traditional collateral, such as real estate, foster trust in the financial system and promote public participation in gold deposit services.
This initiative supports economic growth by enabling businesses to secure loans with gold-based collateral, fostering a more inclusive financial environment.
Commitment to Economic Stability
The BOL's comprehensive measures reflect its dedication to addressing economic challenges, ensuring financial stability, and aligning monetary policies with national development goals, according to Acting Governor Vatthana Dalaloy.
KPL
