Traveling to Laos offers a unique experience, not only in its stunning landscapes and rich culture but also in navigating its currency system. Understanding the local currency, the Lao Kip (LAK), is essential for any traveler looking to immerse themselves fully in this beautiful Southeast Asian country. This guide will provide an overview of the currency, its history, and practical advice for managing your money while exploring Laos.
Currency Overview
The official currency of Laos is the Lao Kip, denoted by the symbol ₭ and the ISO code LAK. The Kip has been in circulation since 1945, initially introduced as the Free Lao Kip, and later renamed to Royal Kip in 1955. It replaced the Indochinese piastre that was previously used throughout French Indochina. The current banknotes in circulation include denominations of 500₭, 1,000₭, 2,000₭, 5,000₭, 10,000₭, 20,000₭, 50,000₭, and 100,000₭. Notably, coins are no longer used in Laos due to their minimal value.
Currency Usage Guide
Denominations
| Denomination | Value in USD (Approx.) |
|---|---|
| 500₭ | $0.02 |
| 1,000₭ | $0.04 |
| 2,000₭ | $0.09 |
| 5,000₭ | $0.22 |
| 10,000₭ | $0.43 |
| 20,000₭ | $0.87 |
| 50,000₭ | $2.17 |
| 100,000₭ | $4.35 |
The exchange rate fluctuates but is approximately 21,000 LAK for 1 USD, making it common for travelers to feel like millionaires when handling Lao currency due to the high denominations.
Acceptable Foreign Currencies
While the Lao Kip is the official currency for all transactions within the country, other currencies such as US Dollars and Thai Baht are also widely accepted in tourist areas and larger establishments. However, it’s advisable to carry a sufficient amount of Kip for smaller purchases and transactions in rural areas where foreign currencies may not be accepted.
Exchanging Money
Travelers can exchange money at banks or licensed exchange bureaus located in major cities like Vientiane and Luang Prabang. It’s important to note that while ATMs are available and dispense LAK only, they often have daily withdrawal limits (typically up to 10 million LAK, or about $480) and may charge transaction fees.
Tips for Travelers
- Carry Small Denominations: When shopping or dining out, especially in local markets or smaller towns, having smaller bills (1,000 to 20,000 LAK) can be very helpful as vendors may not have enough change for larger notes.
- Avoid Airport Exchanges: Currency exchange services at airports tend to offer poor rates; it’s better to wait until you reach a city with more competitive options.
- Dynamic Currency Conversion: When using credit cards or ATMs, always choose to be charged in LAK rather than your home currency to avoid unfavorable conversion rates.
- Credit Cards: While credit cards are accepted at many upscale hotels and restaurants in major cities, they are less common elsewhere. Carry cash for most transactions.
- Plan Ahead: If you plan to travel to remote areas or smaller towns where banking facilities are limited, ensure you have enough local currency on hand before heading out.
With this understanding of the Lao Kip and practical tips for managing your money while traveling in Laos, you can enjoy your journey without worrying about currency-related issues. Embrace the local culture and make the most of your experience in this enchanting country!
Major Banks In Laos
Here are the top 10 major banks in Laos with brief descriptions:
- Banque Pour Le Commerce Exterieur Lao (BCEL): The largest state-owned commercial bank in Laos, established in 1975. It was the first company listed on the Lao Stock Exchange and offers a wide range of banking services including deposits, loans, and digital banking.
- Lao Development Bank (LDB): A key development-focused bank that supports economic growth and provides financial services to businesses and individuals across Laos.
- Joint Development Bank (JDB): A prominent private bank established in 1989, playing a significant role in Laos’ financial sector and supporting local economic development.
- Phongsavanh Bank: A private bank founded by the Phongsavanh Group, offering comprehensive banking services to Lao customers.
- Indochina Bank: A private bank established in 2009, contributing to the diversification of Laos’ banking landscape.
- Bank for Investment and Commerce (BIC): A relatively newer bank that provides modern banking services to businesses and individuals.
- Maruhan Japan Bank Lao (MJB): A unique foreign-invested bank that brings international banking standards to Laos.
- Agricultural Promotion Bank (APB): Specializes in providing financial services to the agricultural sector, crucial for Laos’ rural economy.
- ACLEDA Bank Lao: A subsidiary of the Cambodian ACLEDA Bank, offering modern banking solutions in Laos.
- Kasikornbank Lao: A Thai bank subsidiary providing international banking expertise to the Lao market.
The Laotian banking sector continues to evolve, with a mix of state-owned, private, and foreign banks working to modernize financial services and support the country’s economic development.
Explore Laos Further
- Common Misconceptions – Laos
- Currency Guide – Laos
- Essential Travel Tips for Laos
- Geographical Regions of Laos
- Laos [Country Info]
- Popular Cities To Visit In Laos
- Popular Foods In Laos
- Safety Guide For Travelers To Laos
- Top 50 Historical Places To Visit In Laos
- Top 50 Museums To Visit In Laos
- Top 50 Things To Do In Laos
- What Languages Are Spoken In Laos?
