VIENTIANE, Nov. 3 (Xinhua) – The Central Bank of Laos, the Bank of the Lao PDR (BOL), is taking stronger measures to control the exchange rate hike after several foreign currencies have appreciated in value and commodity prices have skyrocketed.
Addressing the Ninth Legislature of the National Assembly (NA), which entered its second ordinary session on Monday, BOL Governor Sonexay Sithphaxay said one of the key factors was managing the rate differential exchange between banks and exchange offices.
“Currently, BOL, as the country’s central bank, has signed a cooperation agreement with companies involved in money exchange to be the bank’s exchange representatives. A total of 419 exchange offices out of 550 have already signed with the bank, “the local daily said. The Vientiane Times quoted Sonexay as saying Wednesday.
He said some money changers failed to follow the bank’s guidelines and that their business licenses would be revoked and they would be unable to continue operating.
“Thanks to the implementation of this policy, the difference between the exchange rates in banks and in the market has improved. If we look at the exchange rate of Lao kip with the Thai baht, it has stabilized. at less than 1 percent and is close to zero percent, up from the highest rate of 6.13 percent in early July, ”Sonexay said.