KPL
The Bank of the Lao PDR (BOL) signed an agreement on Monday with 11 commercial banks to pool funds for establishing the Lao Foreign Exchange Market Company.
(KPL) The Bank of the Lao PDR (BOL) signed an agreement on Monday with 11 commercial banks to pool funds for establishing the Lao Foreign Exchange Market Company.
The agreement was signed by Mr. Phanousack Kenvongphachanh, Head of the Bank of the Lao PDR Office, and the directors of all 11 participating commercial banks. The signing ceremony was witnessed by Ms. Vatthana Dalaloy, Acting Governor of BOL, along with representatives from relevant departments under BOL, commercial banks, and other authorities.
Ms. Fongchinda Sengsoulivong, Director of the Monetary Policy Department at BOL, stated, "Since the beginning of August 2024, when BOL and 15 commercial banks signed an MoU to establish the foreign exchange market, we have been developing a foreign currency exchange system compatible with those used by the commercial banks. The system is now ready for public use."
She added that the system had already been in trial operation via smartphone applications of some commercial banks since August 22, 2024.
"So far, seven commercial banks have launched foreign exchange services using this system. These banks include BCEL, Agriculture Promotion Bank, ST Bank, BIC Bank, Joint Development Bank, Lao Development Bank, and Lao-Viet Bank," Ms. Fongchinda noted.
During its initial phase, the platform will facilitate trades in three currencies: the US dollar, Thai Baht, and Chinese Yuan. Transactions can be conducted through online platforms and mobile apps, and the system is integrated with LAPNET, enabling foreign currency trading between banks beyond their host institutions.
"Since we initiated the trial, public interest in the system has been growing, and its popularity continues to rise," she said.
"Today, BOL received confirmations from 11 commercial banks to pool funds for founding the Foreign Exchange Market Company, with BOL itself becoming one of the 12 shareholders."
"Following today’s signing of the partnership agreement, shareholders are required to take immediate action to establish the company and officially launch the foreign exchange market system by the end of this month," Ms. Fongchinda concluded.
KPL
