On Friday, 20 January 2023, The Bank of the Lao PDR (BOL) issued a statement that stated further measures to restrain the depreciation of its currency. In addition, the notice states demanding that 113 exchange businesses affiliated with the 6 commercial banks temporarily suspend their operations as well as revoke the business licenses and instruct the banks to discontinue their contracts with these businesses.
BOL will now proceed to close the deposit accounts of registered currency exchange businesses that worked with commercial banks. Exchange businesses have been urged as well to return any contracts or agreements to the Department of Monetary Policy or the relevant departments of the BOL by 31 January.
In accordance, The individuals or entities must first obtain the proper license from the central bank for the purpose. Moreover, the exchange businesses for the tourism or hospitality industry are only allowed. This was done to control the exchange rates of foreign currencies within the country.
By Ashley Jones