Acting Governor of the Bank of the Lao PDR (BOL), Ms. Vatthana Dalaloy, addressed key economic issues during the 8th Ordinary Session of the National Assembly on Monday. The session focused on critical concerns such as inflation, exchange rate instability, fluctuating commodity prices, and government funding for production initiatives. Dalaloy outlined the BOL's strategy for 2024, emphasizing continued tight monetary policies to stabilize the economy and curb inflation. Measures discussed included issuing BOL bonds, centralizing government deposits to improve liquidity, and managing the Lao kip’s exchange rate within market guidelines while ensuring flexibility through state oversight.

In efforts to enhance foreign exchange transparency, the Lao government has consolidated commercial banks to form the Lao Foreign Exchange (LFX) market, improving accessibility and management of foreign currency. Additionally, new legislation has been introduced to strengthen the handling of foreign currency inflows, contributing to financial stability. Furthermore, the government, in collaboration with PTL Holding, has launched a Gold Bank to provide innovative financial services such as gold savings accounts and gold-backed loans, aimed at diversifying financial options and supporting sectors traditionally excluded from collateralized loans.

These developments reflect the government’s commitment to stabilizing the economy, ensuring financial inclusion, and aligning monetary policies with national development goals, as stated by Dalaloy.

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