Jump to content

Confirmed: Cannot exchange Lao Kip to Baht or USD anymore


LuukKoeyKorat

Recommended Posts

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

Link to comment
Share on other sites

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.

Edited by Bounngou
Link to comment
Share on other sites

  • 2 weeks later...

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.

Edited by lovelaos
Link to comment
Share on other sites

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 thumbsup.gif

  • Like 1
Link to comment
Share on other sites

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

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 thumbsup.gif

Link to comment
Share on other sites

  • 1 year later...

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. smile.png

Edited by lovelaos
Link to comment
Share on other sites

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

Link to comment
Share on other sites

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.

  • Like 1
Link to comment
Share on other sites

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!

wai.gif

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

  • Like 1
Link to comment
Share on other sites

  • 4 weeks later...

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 ?

Link to comment
Share on other sites

  • 3 weeks later...

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

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.

  • Like 1
Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...