Cross-border funding into and out of the Lao PDR now follows a more prescriptive approval and compliance regime. On 5 August 2026, the Bank of the Lao PDR (“BOL”) issued Decision No. 707/BOL on the Management of Cross-Border Borrowing (the “Decision”). The Decision took effect on the date of signing. The Decision does not apply […]

On 24 March 2026, the Bank of the Lao PDR (“BOL”) issued Decision No. 251/BOL on the Management of Offshore Bank Account Openings (the “Decision”), which applies to Lao residents who wish to open bank accounts overseas, but not to commercial banks and financial institutions. Who can open an offshore bank account? An offshore bank […]

On 10 March 2026, the Decision on the Management of Lao PDR Cash Inflows and Outflows No. 140/BOL dated 18 February 2026, which was issued by the Bank of the Lao PDR (“BOL”), was published in the Lao Official Gazette. This decision replaces the provisions on cash transactions into and out of the Lao PDR […]

The Lao kip has shown signs of stabilization in its exchange rate against the US dollar and Thai baht in recent months. These two foreign currencies remain the most widely used foreign currencies in the Lao PDR, playing a crucial role in trade and economic transactions. To strengthen the management and stability of foreign currency […]

On 3 January 2025, the Bank of the Lao PDR (“BOL”) issued Decision on the Use of Foreign Currency No. 11/BOL (the “FCU Decision 2025”) to implement and provide further guidelines on the utilization of foreign currency as regulated under the Law on Foreign Currency Management No. 15/NA dated 7 July 2022 and the Order […]

Background The information provided below will help you understand the evolution of foreign exchange management by the Lao PDR government (the “GOL”) and the current situation. Prior to the year 2023, the GOL and its authorities took a relatively relaxed approach to managing foreign currency. Although the Law on Foreign Currency Management (dated 22 December […]

On 13 August 2024, the Ministry of Labor and Social Welfare (“MLSW”) issued Notice No. 2721/MLSW (“MLSW Notice”) to further detail its role as delegated by Article 2 (2.9) of Prime Minister Order No. 10/PM dated 14 July 2023 (“PM Order”) on Foreign Currency Management. Article 2 (2.9) states that the MLSW is responsible for […]