Confirmed: Cannot exchange Lao Kip to Baht or USD anymore

[LuukKoeyKorat]

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

[Bounngou]

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.

[lovelaos]

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.

[LuukKoeyKorat]

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.

[lovelaos]

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

[LuukKoeyKorat]

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

[Tony Rabbott]

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

[wooloomooloo]

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.

[digo]

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

[lovelaos]

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.

[petevandell]

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

[lovelaos]

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.

[petevandell]

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

[petevandell]

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!

[mexxx]

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

[lovelaos]

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.

[lovelaos]

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.

[Penefattore]

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

Could you write which banks are offering 16% ?

[Penefattore]

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 ?

[Spaniel]

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.

[DavidMavec]

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.

[lovelaos]

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.

[DavidMavec]

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.

[Penefattore]

A few micro finance banks offer 16%.

apart EMI which else ?

[Penefattore]

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 ?

[Penefattore]

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 ?

[lovelaos]

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.

[DavidMavec]

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.

[Penefattore]

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.