MONEY and CURRENCY in Laos ▶️

1. Currency of Laos
2. Banknotes + Coins
3. Exchange in Laos
4. Banks in Laos
5. ATMs + Credit Cards
6. Things To Watch Out
7. Questions + Answers

The official currency of Laos is the Laotian Kip (LAK).

Laos, a country rich in culture and nature, is not only home to picturesque landscapes and historical landmarks but also a distinctive currency that reflects the diverse history of this Southeast Asian destination. However, the Laotian Kip holds little significance in the global economy, and its value is quite modest.

History and French Influence:

The history of this currency dates back to the time when Laos was part of French Indochina. In 1907, the French currency was introduced in the region, but in 1952, a separate national currency for Laos was established – the kip. The name of the currency is derived from the Thai word „kup,“ meaning „penny,“ clearly illustrating the influence of neighboring countries on the currency’s development.

Economic Instability and Low Value of the Kip:

The Laotian Kip has a very low value compared to other world currencies, partly due to the economic instability of the country in past decades. Over time, certain economic and political reforms have been implemented to help strengthen the currency’s stability.

Design and Symbolism of the Kip:

Kip coins and banknotes feature a rich palette of colors and designs, often inspired by traditional Laotian culture and nature. Images of historical figures, temples, and natural beauty adorn the banknotes, with each detail carrying its own story and symbolism.

Opening Laos to the World and Its Impact on the Kip:

In recent years, Laos has started to open up to foreign trade and tourism, influencing the country’s economic development and the value of the kip. Increased demand for Laotian products and tourism services may contribute to strengthening this currency on the international stage.

Laotian Kip as a Cultural Artifact:

Nevertheless, Laos still maintains its unique identity, reflected in its currency. The kip is not just a financial unit but also a cultural artifact bearing traces of the history, traditions, and transformations of this beautiful country. The currency of Laos, much like the country itself, represents a fascinating blend of past and present, creating a colorful portrait of this Southeast Asian gem.

What paper banknotes and coins are used in Laos?

In Laos, there are circulating banknotes and coins used for everyday transactions. Here is a brief overview of the paper banknotes and coins commonly used in Laos:

💸 Paper Banknotes in Laos:

• • Banknotes in Laos come in various denominations and are printed in multiple color schemes. Main motifs on the banknotes include historical landmarks, natural scenery, and portraits of significant figures. Some commonly used denominations on the banknotes include 100, 500, 1,000, 2,000, 5,000, 10,000, 20,000, and 50,000 kip.
  • Laotian banknotes are designed with consideration for the country’s cultural heritage, featuring images of temples, traditions, and beautiful landscapes. They are printed on security paper and may contain various security features such as watermarks, holographic strips, or embossed elements to minimize the risk of counterfeiting.

🪙 Coins in Laos:

• • Coins in Laos have lower denominations than banknotes. Commonly used coins have values of 10, 20, and 50 kip. The lower nominal value of coins facilitates small transactions and they are commonly found in circulation for everyday purchases. However, paper banknotes are more prevalent.
  • The design of coins may include state symbols, historical motifs, or portraits of significant figures. Materials used for coins may include metals such as nickel or brass.

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💱 Where to Exchange Money (US Dollars, Euros) in Laos?

Money exchange in Laos is commonly done at banks, exchange offices, and some hotels. Most larger cities and tourist destinations in Laos have available options for currency exchange. Here are some places where you can exchange your money in Laos:

• • Banks in Laos: Banks are a reliable place for money exchange. You can visit local bank branches where currency exchange services for foreign currencies are provided. Banks are usually open on weekdays, and some even on Saturdays.
  • Exchange Offices in Laos: Exchange offices are another option for money exchange in Laos. They are mostly found in larger cities and tourist destinations. Exchange offices may offer different exchange rates, so it’s advisable to compare offers to get the most favorable rate.
  • Hotels: Some upscale or luxury hotels in Laos offer money exchange services for their guests. These services may be convenient but could offer less favorable exchange rates than banks or exchange offices.
  • ATMs in Laos: Larger cities and touristy areas have ATMs. However, their availability may still be limited. You can withdraw money in the local currency from ATMs using your international debit or credit cards. It’s advisable to check with your bank in advance to ensure your card is accepted in Laos. Also, inform your bank about your trip to Laos to avoid any preventive card blockages.

Before exchanging money, it’s always good to monitor current exchange rates and check for possible fees associated with exchanges in different locations. Keep in mind that exchanges are mainly done in larger cities; in rural areas, you may encounter difficulties with currency exchange. Therefore, it’s wise to always have some local currency in cash.

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🏦 What Banks are in Laos?

In Laos, several domestic banks play a crucial role in the country’s financial system. Here are some of the main domestic banks in Laos:

1. 1. Banque pour le Commerce Extérieur Lao (BCEL):
      • BCEL is one of the largest banks in Laos, playing a significant role in providing banking services to citizens and businesses.
      • The bank offers a wide range of products, including current accounts, savings accounts, loans, credit cards, and other financial products.
   2. Lao Development Bank (LDB):
      • LDB is a state-owned bank focusing on supporting development and financing infrastructure projects in the country.
      • Its mission is to promote economic development through providing loans and other financial instruments.
   3. Banque Franco-Lao (BFL):
      • BFL is a joint venture between the Lao government and the French bank Société Générale.
      • It specializes in corporate and commercial banking, offering various banking services for businesses and individuals.
   4. Lao-Viet Bank (LVB):
      • LVB is a bank shared by the Lao and Vietnamese governments.
      • It has branches in Laos and Vietnam, providing regular banking services, loans, and other financial products.
   5. Joint Development Bank (JDB): JDB is another domestic bank in Laos focusing on development projects and supporting small and medium-sized enterprises.

It’s important to note that Laos also has foreign banks and branches of international banks operating in the country. For foreigners and tourists, international banks with branches in Laos may facilitate banking transactions.

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What are the International Banks in Laos?

Here are some of the international banks operating in Laos, and there are others with smaller branches:

1. 1. ANZ Bank (Australia and New Zealand Banking Group): ANZ had branches in Laos in the past, providing regular banking services and financial advice. However, it’s crucial to check current information about their presence in the country.
   2. Kasikorn Bank: Originating from Thailand, this bank might offer some international banking services in Laos.
   3. Vietcombank: Vietnam Commercial Joint Stock Bank (Vietcombank) has branches in Southeast Asian countries, including Laos, offering banking services for citizens and businesses.
   4. ICBC (Industrial and Commercial Bank of China): ICBC, the largest bank in China, has branches in some Southeast Asian countries, including Laos.
   5. Bank of China: Another Chinese bank, the Bank of China, may have branches in Laos providing banking and financial services.

When planning banking transactions in Laos, it’s advisable to check current information about the presence of international banks, as the situation may change over time. Contacting a specific bank can provide the most up-to-date and accurate information on available banking options for foreigners.

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🏧 ATMs and Payment Cards in Laos:

In Laos, ATMs are available and accept various types of payment cards. Here are some important pieces of information about ATMs and payment cards in Laos:

ATMs in Laos:

• • ATMs are commonly available, especially in larger cities and tourist destinations.
  • Most ATMs allow cash withdrawals in the local currency (kip) or, in some cases, in foreign currencies such as US dollars.
  • ATMs can be located at banks, stores, or public places.

Types of Payment Cards:

• • International payment cards such as Visa and MasterCard are widely accepted in Laos. Some banks and stores may also accept other card types, like American Express or JCB, but their acceptance could be more limited.
  • It’s advisable to have cash on hand, especially in rural areas where there might not always be enough ATMs or card-accepting stores.

Tips for Using ATMs and Payment Cards:

1. 1. Withdraw Local Currency: If possible, withdraw cash in the local currency (kip) to minimize potential currency exchange fees.
   2. Check Fees with Your Bank: Before traveling to Laos, inquire with your bank about any fees for cash withdrawals abroad or using your payment card in a foreign country.
   3. Verify ATM Presence: If traveling to rural areas or smaller towns, there might be fewer ATMs. Have enough cash on hand if planning to stay in more remote parts of the country.

Before traveling to Laos, it’s always a good idea to contact your bank to understand the current conditions for using payment cards in the country and check for up-to-date information on fees and exchange rates.

💳 Which Credit Cards Can You Use in Laos?

In Laos, international payment cards such as Visa and MasterCard are generally the most widely accepted. These cards are widely recognized in banks, stores, restaurants, and many other places. Their usage is common in larger cities and tourist destinations.

However, keep in mind that in smaller towns or remote areas, the acceptance of credit cards may be more limited, and you may encounter places where cash is the preferred form of payment. In such cases, it’s always good to have enough local currency (kip) or US dollars on hand.

Some other international payment cards, such as American Express or JCB, may be accepted in certain stores or hotels, but their acceptance might be more limited compared to Visa and MasterCard. Before traveling, it’s advisable to check the current information with your bank and inquire about any fees associated with using your card abroad.

Above all, it’s good to have multiple payment options, including cash and various payment cards, to be able to respond flexibly to different situations.

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Can You Use ATMs at Airports in Laos?

Yes, most international airports in Laos are equipped with ATMs that allow cash withdrawals. In these facilities, you can typically withdraw the local currency, Laotian kip. However, some ATMs at international airports may also offer the option to withdraw in foreign currencies, such as US dollars or euros.

You can find ATMs in the terminals for departures or arrivals, depending on the specific airport. Before traveling, it’s always good to check information about the presence of ATMs at the particular airport to be prepared for any cash withdrawals.

When using ATMs at airports, remember to:

1. 1. Check Fees: Some banks may impose fees for cash withdrawals from ATMs abroad. It’s advisable to inquire in advance about fees associated with using ATMs in Laos.
   2. Have Payment Cards: Carry at least one international payment card that ATMs accept (usually Visa or MasterCard).

Most airports, especially in the capital city Vientiane and tourist-frequented areas, should be well-equipped with ATMs for the convenience of travelers.

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Can You Exchange Money at the Airports in Laos?

Yes, currency exchange is a common service provided at international airports in Laos. At these airports, currency exchange offices or bank counters will be available where you can exchange your money for the local currency, Laotian kip, or possibly for other accepted currencies, such as US dollars or euros.

A few tips when exchanging money at airports:

1. 1. Exchange Rates: Exchange rates at airports may be slightly less favorable than in the city center or at banks. However, it may be convenient to exchange a small amount at the airport for essential expenses.
   2. Multiple Currencies: Some airports may exchange multiple currencies, including US dollars or euros. However, it is generally recommended to exchange money for the local currency to minimize currency exchange fees.
   3. Fees: Keep in mind that exchange offices at airports may charge fees or have less favorable exchange rates. It’s advisable to inquire in advance about current conditions.

If you have specific currency exchange requirements before your trip or plan to exchange larger amounts, you may consider exchanging money at banks or currency exchange offices in the city where conditions could be more advantageous.

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ATM Withdrawal Fees in Laos and Withdrawal Limits:

ATM withdrawal fees in Laos can vary and depend on the specific bank operating the ATM and the bank institution that owns the payment card you are using. The amount of fees may differ among different banks and international payment cards. Withdrawal limits at ATMs can also be set by both the bank owning the ATM and the bank owning the payment card.

General information (verify current conditions before traveling):

1. 1. ATM Withdrawal Fees:
      • Banks in Laos typically impose fees for ATM withdrawals. These fees may be in the form of a percentage of the withdrawn amount or a fixed fee.
      • Percentage fees usually range between 1% and 3% of the withdrawal amount.
      • Fixed fees may range between 1 USD and 5 USD or more.
   2. ATM Withdrawal Limits:
      • ATM withdrawal limits can be set by the bank owning the ATM and the bank owning the payment card.
      • Typically, withdrawal limits from ATMs are daily (e.g., 500 USD) or weekly (e.g., 1,000 USD), but they may vary depending on the specific bank.

Before traveling, it’s always good to ask your bank about current ATM withdrawal fees and withdrawal limits applicable to your specific payment card.

⚠️ What to Watch Out for When Paying in Laos?

When making payments in Laos, it’s good to keep in mind several tips and pieces of information to ensure secure and convenient transactions:

1. 1. Use of Cash: Even though credit cards are generally accepted in larger cities and tourist areas, acceptance may be more limited outside these locations. Always have enough cash, especially in rural areas.
   2. ATMs: Before using an ATM, check if it’s legitimate and located in a secure place. Keep your payment card and PIN secure, and do not leave them unattended.
   3. Withdrawal Fees: Be aware of possible fees for ATM withdrawals abroad. Inquire with your bank about potential fees to be prepared for any charges.
   4. Currency Exchange: When exchanging money at a currency exchange or bank, monitor exchange rates and fees. Try to avoid exchanges with unfavorable rates or hidden fees.
   5. Scams: Exercise caution when paying or exchanging money on the street. Be mindful of possible scams and pay attention to transaction details.
   6. Card Payments in Restaurants and Hotels: When paying by card in restaurants or hotels, keep a copy of the receipt and verify that transactions are entered correctly. Some places may have additional charges for card payments.
   7. Rounding Suggestions: It may be customary to round bills to whole amounts. When paying in cash, make sure to agree on the exact amount.
   8. Changes at Markets: At markets, there may be an expectation of receiving the exact amount. Have appropriate cash and be prepared for situations where change may not be available.

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❓ FAQ + TIPS – Money and Currency in Laos:

1. What is the official currency in Laos, and what is the exchange rate?

• • The official currency in Laos is the Laotian kip (LAK). The exchange rate may vary, but it usually hovers around 10,000 LAK for 0.50 USD. It’s recommended to monitor current exchange rates before traveling.

2. What are the options for exchanging money in Laos?

• • Money exchange can be done at banks, currency exchange offices, and some hotels. Banks may offer better rates but have limited opening hours. Currency exchange offices are usually available for longer hours, but rates may be less favorable.

3. Are ATMs readily available in Laos, and what are the fees?

• • ATMs are available mostly in larger cities and tourist areas in Laos. Cash withdrawal fees may vary depending on the bank and card type. It is recommended to use ATMs connected to banks for lower fees.

4. Is card usage common in Laos, and how widely are credit cards accepted?

• • Acceptance of credit cards is more limited compared to other countries and is more common in upscale establishments and larger cities. In smaller shops and markets, cash is usually preferred.

5. Are payment apps and mobile payments common in Laos?

• • Payment apps and mobile payments are not as common in Laos as in other Asian countries. Most transactions are still conducted in cash. Tourists should have enough cash for purchases in places where cards are not commonly accepted.

6. What are the recommendations for using ATMs and credit cards in Laos?

• • In touristy areas, it is recommended to withdraw cash from ATMs located in secure places, such as shopping centers or banks. Be vigilant, avoid isolated areas, especially during nighttime cash withdrawals, and keep your card within sight when paying at restaurants and shops.

7. What are the experiences with payments outside tourist-known areas?

• • In remote areas of Laos, acceptance of credit cards and ATMs may be limited. It’s advisable to have enough cash if planning to visit rural or secluded regions. Local markets and smaller establishments usually accept only cash.

8. Are there any specific tax rules or fees in Laos for tourists?

• • There are no specific tax rules for tourists in Laos concerning financial transactions. However, tourists should exercise caution and check for any fees when exchanging money or withdrawing from ATMs. Before traveling, it’s advisable to gather information about current local regulations.

9. Do hotels in Laos have any specific payment rules?

• • Most hotels in Laos require a credit card or cash during check-in for a deposit on potential additional services or damages. When booking accommodation, it’s advisable to familiarize yourself with payment rules and possible fees.

10. What are the practices and tips for handling cash safely in Laos?

• • When visiting markets and smaller shops in Laos, it is recommended to carry smaller denominations of cash and carefully monitor valuables. Having a smaller wallet for easy access to money and minimizing exposure of larger amounts during payments is advisable.

11. What currency is commonly used in Laos, and which ones are accepted?

• • In addition to the Laotian kip, you can also use US Dollars and Thai Baht in larger cities. However, these currencies may not be accepted in rural areas. It is advisable to carry Laotian kips primarily.

12. Are there any recommendations in Laos regarding tipping?

• • Tipping is not mandatory in Laos, but it is common to round up the amount in restaurants and leave a small tip in hotels. If the service is good, leaving 5-10% of the amount is customary. In upscale establishments, a service charge may be added.

13. Are there any rules in Laos regarding money exchange during holidays?

• • During holidays and festivals in Laos, banks may be closed for several days, and exchange rates may fluctuate. It is advisable to have enough cash before any holidays and festivals and plan financial transactions with consideration for these events.

14. Are there any precautions regarding the use of ATMs and cards in Laos?

• • In touristy areas, it is recommended to withdraw cash from ATMs located in secure locations, such as shopping centers or banks. It’s essential to be aware of your surroundings and avoid isolated places, especially during nighttime cash withdrawals.

15. What is the procedure in case of loss or theft of a payment card in Laos?

• • In case of loss or theft of a payment card in Laos, it is crucial to immediately contact the bank and block the credit card. Informing local police and obtaining a police report is also key to resolving the situation. Tourists should also contact their home country’s bank and inform them of the situation. Recording contact information for card blocking and taking immediate action are crucial for minimizing financial losses.

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