Bank of Laos Introduces New Regulations for Foreign Currency Deposits
New rules aim to enhance transparency and promote financial stability
Starting April 5, the Bank of Laos (BOL) will implement new regulations for foreign currency deposit accounts to improve financial management and transparency. Under these new rules, individuals and businesses will be required to prove they have a legitimate source of foreign currency before opening an account.
Transfers between foreign currency accounts will incur a 0.5 percent fee, with transaction charges ranging from USD 1 to USD 50. Daily transfer limits have also been introduced. Individuals can transfer up to USD 1,000 without the need for documentation, while larger amounts will require proof of purpose. Businesses will be able to transfer up to USD 10,000 without documentation, with larger transactions requiring verification. Organizations have a limit of USD 20,000 before documentation is needed.
Transfers can be made through mobile banking apps, ATMs, and bank branches. For transactions requiring documentation, users can either submit copies at bank branches or upload scanned documents through mobile apps. Accepted documents include invoices, contracts, and other relevant papers.
These new measures aim to encourage the deposit of foreign currency in banks, stabilize the exchange rate, and ensure better financial oversight. The regulations do not affect accounts used for international trade and investment, which will continue to operate under existing rules. The BOL hopes that the implementation of these rules will reduce unregulated currency exchanges and help strengthen the use of the Lao kip, contributing to greater financial stability.
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Transfers between foreign currency accounts will incur a 0.5 percent fee, with transaction charges ranging from USD 1 to USD 50. Daily transfer limits have also been introduced. Individuals can transfer up to USD 1,000 without the need for documentation, while larger amounts will require proof of purpose. Businesses will be able to transfer up to USD 10,000 without documentation, with larger transactions requiring verification. Organizations have a limit of USD 20,000 before documentation is needed.
Transfers can be made through mobile banking apps, ATMs, and bank branches. For transactions requiring documentation, users can either submit copies at bank branches or upload scanned documents through mobile apps. Accepted documents include invoices, contracts, and other relevant papers.
These new measures aim to encourage the deposit of foreign currency in banks, stabilize the exchange rate, and ensure better financial oversight. The regulations do not affect accounts used for international trade and investment, which will continue to operate under existing rules. The BOL hopes that the implementation of these rules will reduce unregulated currency exchanges and help strengthen the use of the Lao kip, contributing to greater financial stability.
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