Off to Thailand on a shopping trip tomorrow, withdrew money from my Kip account to change to THB....impossible to exchange in any Lao bank since about 3 weeks ago. Fortunately, exchange is still possible in gold shops albeit at a lower rate.

This applies to THB, USD for sure, and a handful of other currencies I don't have confirmation of. Checked Thai banks online to see if they accept Lao Kip....looks like only Bangkok Bank.

Just a word of warning especially to Lao expats with Kip business earnings and accounts who might not be aware of this recent central bank directive, it was kept very quiet.

PS: I bank with BCEL and they refused to exchange.

Cheers

kip has been overvalued for a long long time now. this will help create a blackmarket at a more realistic exchange rate. the many non-bank money changers in Vientiane might be able to hold of the quasi devaluation though if they see it in their interests to do so.

Is there any updates on this? Last week (2/9/13) I tried with BCEL Bank also and was refused. I did exchange from a private dealer at a better rate anyway.

I will try again this week.

As of yesterday 09/09, still the same situation in Luang Prabang with BCEL. I believe its an ongoing indefinite exercise from the Lao central bank :-(, well atleast until they get rid of the shadow currencies.

As of yesterday 09/09, still the same situation in Luang Prabang with BCEL. I believe its an ongoing indefinite exercise from the Lao central bank :-(, well atleast until they get rid of the shadow currencies.

I seem to remember them doing this a few times in the past. If you do get stuck with only kip in Nong Khai there are a few gold shops in the big market who will change kip to Baht for quite a good rate

I think I know the one in Than Sadej market - next to the delicious Khao Ka Moo restaurant?

As of yesterday 09/09, still the same situation in Luang Prabang with BCEL. I believe its an ongoing indefinite exercise from the Lao central bank :-(, well atleast until they get rid of the shadow currencies.

I seem to remember them doing this a few times in the past. If you do get stuck with only kip in Nong Khai there are a few gold shops in the big market who will change kip to Baht for quite a good rate

go to the bus station and hit on some of the crossborder bus travellers to get rid of your kip;.

go to the bus station and hit on some of the crossborder bus travellers to get rid of your kip;.

The one time I went to Lao I took hundreds of twenty baht notes. They're accepted everywhere but you will always get whatever change in Kip. I returned to LOS with one seven thousand Kip note.

Now, September 2014...someone know if its possible still to change kip to baht in Laos?

Now, September 2014...someone know if its possible still to change kip to baht in Laos?

Yes, you can change anywhere now. Back to normal.

Hi,

Is it possible to exchange my Thai Baht THB to Laos Kip LAK in order to open a Fixed Rate Savings account with a Laos bank in order to benefit from the favorable rate for LAK accounts?

Thanks

Hi,

Is it possible to exchange my Thai Baht THB to Laos Kip LAK in order to open a Fixed Rate Savings account with a Laos bank in order to benefit from the favorable rate for LAK accounts?

Thanks

To open a Laos bank account you must have either a work permit, an enterprise registration certificate, a tax registration certificate or an investment license. If you any have these, no problem.

Currently, fixed rate saving accounts for LAK are offering between 13-16% interest.

Thank you lovelaos for your reply. Those are very attractive interest rates!

I wonder how one might go about obtaining any of those documents you have listed.

Is residence in Laos essential, I wonder? For an investment license, is there a minimum amount required?

I would welcome any further information you might like to share.

Thanks again,

Peter

Assuming I manage to open a Laos LAK account, how easy is it to exchange LAK back to USD or THB? There must be a catch with those interest rates!

the catch is that the kip is over valued & the communists know it & exchanging kip is not always possible.

Thank you lovelaos for your reply. Those are very attractive interest rates!

I wonder how one might go about obtaining any of those documents you have listed.

Is residence in Laos essential, I wonder? For an investment license, is there a minimum amount required?

I would welcome any further information you might like to share.

Thanks again,

Peter

Required information on the law is here http://www.vientianetimes.org.la/Laws%20in%20English/19.%20Law%20on%20the%20Promotion%20of%20Foreign%20Investment%20(2004)%20Eng.pdf

The 13-16% interest I mentioned is for LAK only. THB and USD accounts are considerably lower.

Assuming I manage to open a Laos LAK account, how easy is it to exchange LAK back to USD or THB? There must be a catch with those interest rates!

The 'catch' is you have to deposit in LAK for 48 months to get 16% interest.

Currently, fixed rate saving accounts for LAK are offering between 13-16% interest.

Could you write which banks are offering 16% ?

To open a Laos bank account you must have either a work permit, an enterprise registration certificate, a tax registration certificate or an investment license.

what's an investment license ? might it be I was given one when I opened a brokerage account with BCEL-KT to invest in LSX ?

I just left Luang Prabang on Friday, 31 Oct, and was able to exchange my extra kip to bhat at the exchange desk at the airport.

I just left Luang Prabang on Friday, 31 Oct, and was able to exchange my extra kip to bhat at the exchange desk at the airport.

Sure, that was only for a short period in 2013 that you couldn't exchange LAK to other currencies.

Currently, fixed rate saving accounts for LAK are offering between 13-16% interest.

Could you write which banks are offering 16% ?

A few micro finance banks offer 16%. Most major banks offer 13% for long term (5 year) savings.

Currently, fixed rate saving accounts for LAK are offering between 13-16% interest.

Could you write which banks are offering 16% ?

A few micro finance banks offer 16%. Most major banks offer 13% for long term (5 year) savings.

Indochina is offering 12.5% for the first two years which gets bumped up to 13.5% if you let them automatically renew your account after two years maturity.

A few micro finance banks offer 16%.

apart EMI which else ?

Indochina is offering 12.5% for the first two years which gets bumped up to 13.5% if you let them automatically renew your account after two years maturity.

Do they require the work permit or is passport enough ? Interest is paid yearly or at maturity ?

I was tempted to invest in http://www.phongsavanhbank.com/psv/index.php?lg=ENG&modules= but they don't show their balance sheets. Any hint about where I could find them ?

Indochina is offering 12.5% for the first two years which gets bumped up to 13.5% if you let them automatically renew your account after two years maturity.

Do they require the work permit or is passport enough ? Interest is paid yearly or at maturity ?

B2(work permit) visa is required to open any bank account in Laos and they're very strict about it.

Indochina is offering 12.5% for the first two years which gets bumped up to 13.5% if you let them automatically renew your account after two years maturity.

Do they require the work permit or is passport enough ? Interest is paid yearly or at maturity ?

They require a work permit. Interest is paid at maturity for the interest rate I specified but you can choose to receive interest at the time you deposit the money, for a slightly reduced rate. The only bank I know of in Laos that does not require a work permit is Phonesavanh, which I have heard is in trouble.

B2(work permit) visa is required to open any bank account in Laos and they're very strict about it.

and I don't understand why.

I mean, if I want to invest in their stock market I need a bank account and nowhere in their foreign investors law is written that a work permit is needed for financial investments.

Same should be for fixed deposits.

Anyway if they want to keep their high rates for domestic savers I will just invest my money elsewhere.