What you need to know about money exchange in Laos

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What you need to know about money exchange in Laos

Admin July 7, 2017 4:31 GMT

The Lao kip (LAK) is the official national currency in Laos. In reality, kip, Thai baht (B) and US dollars (US$) are three currencies used for commerce though only kip is legally negotiable in everyday transactions. In bigger cities and towns, at most businesses, including hotels, restaurants and shops, US dollars and baht are readily acceptable. Travel Indochina Laos

Kip is usually preferred in smaller towns and villages. The rule of thumb is that prices are quoted in kip for everyday small purchases. Anything costing US$100 or much more (for example: tours, long-term car hire) is quoted in US dollars while more expensive goods and services (for example: long-distance boat hire) may be quoted in baht or dollars.

Bank of the Laos PDR- source: internet

The kip cannot yet call itself a stable currency inspite of experiencing relative stability in recent years. The only reliable sources of foreign exchange information are those inside the country as the Lao kip is not convertible to any currency outside of the Lao PDR.

Banking

At several banks in Vientiane, including branches of Thai banks, foreign residents of Laos can open US dollar, kip or baht accounts. Unfortunately, you will not be permitted to withdraw any money in Laos and must open a new account if you already have an account at a Thailand-based branch of a Thai bank. Alternatively, as more banking services are available and interest rates are much higher, expatriates living in Vientiane use Thai banks across the river in Nong Khai.

Cash

Kip Laos- source: internet

For the domestic cash economy, Laos heavily relies on the US dollar and the Thai baht. In fact, an estimated two-third of all cash circulating in Vientiane, celebrates US presidents while another third bears the portrait of the Thai king.

However, it is always worth having a wad of kip in your pocket as the vast majority of transactions will be carried out in this currency. Bring notes coming in denominations of the recently printed 50,000 kip and 20,000; 10,000; 5000; 2000; 1000 and 500. In some areas, especially rural ones, small vendors are likely to struggle to change the 20,000 kip and 50,000 kip notes. Also, watch you do not go handing out 50,000 kip notes thinking the/re 20,000 kip as both of these larger notes are red.

The dollar and the baht are favored for larger transactions. Five 1000 baht notes –equal to about US$135 – are quite a bit easier to carry than one hundred and thirty five 10,000-kip notes – they also make carrying money less of a hassle. By carrying most of your cash in baht and/or dollars, along with smaller amounts of kip, you can save luggage space, especially if you plan on making frequent transactions of over US$20. Spend it before you go as right after you leave Laos, no-one-except maybe other travelers on their way into Laos – will want your kip. Travel to Laos