If you want to know what currency is in Laos, then our article will help you figure it out. In the named state, the official currency is the local bale. Lao bale includes 100 at. This currency was put into circulation instead of the Indochinese piastre in 1955. The exchange of old banknotes for new banknotes was carried out in a ratio of 1 to 1. In the international currency designation, the currency of Laos has the code LAK. In addition, the symbol ₭ or K. is used for it.
Currency History of Laos
The piastre, preceding the bale, was put into circulation on the territory of the Indochinese colonies of France in 1878. The issue of currency was carried out by a private Indochina Bank. At first, piastre was equated with the Mexican peso. It consisted of 24.4935 g of pure silver. However, in the summer of 1895, the content of this metal in the monetary unit decreased and became 24.3 g.
After 35 years, the gold content of the Indochinese piastre was established in the amount of 0.5895 grams of gold. But just a year after that, in 1936, it was eliminated.
After the Japanese occupation of French Indochina, the piastre continued to be the official local unit. His rate against the Japanese yen was set at about 1 to 1. Nevertheless, after the end of World War II, at the end of 1945, piastra quotes were again attached to the French franc in a ratio of 1 to 17. In May 1953, the ratio changed and was already 1:10.
Introduction of own national currency
On the eve of the new year 1955, an agreement was concluded in the capital of France, Paris, which terminated the existence of the Issuing Bank of Indochinese states. These included Cambodia, Laos and Vietnam. The assets and liabilities of a financial institution were divided between the new national treasuries. The currency of Laos and its emissions fell under the responsibility of the established National Bank of the State.
In 1976, a revolution prevailed in the country. The consequence of those events was the denomination to which the currency of Laos was subjected. The exchange rate of old banknotes for new banknotes amounted to 20 to 1. Nevertheless, the rapidly continuing increase in inflation led to the need to conduct a new denomination in 3 years.
This time, old bills were exchanged for new banknotes in a ratio of 100 to 1. In 1980, metal coins with a face value of 10, 20 and 50 at. But, due to the further devaluation of the national currency, they practically do not participate in trade and payment transactions. Paper bills are used primarily for exchanging for US dollars.
Banknotes of Lao Kip
To date, the currency of Laos is in circulation in denominations of one, five, ten, fifty, one hundred and five hundred bales. In addition, the high level of inflation and devaluation led to the need to issue banknotes of a higher denomination. Therefore, in circulation, trade and payment transactions, banknotes of one thousand, two thousand, five thousand, ten thousand, twenty thousand, fifty thousand and one hundred thousand bales are used.
Lao banknote design
Laos currency of small dignity on its front side contains an image of a peasant with a plow working in rice fields, shepherds and a tank of the armed forces. On the obverse of the bales of higher denomination there is an image of the founder of the Lao People's Democratic Republic, Kason Fomvihan. The reverse of all banknotes depicts the government building, as well as various situations from the life of the peoples of the state of Laos.
All banknotes in the Lao bale have reliable protection against fake in the form of a watermark, consisting of a portrait of Kayson Fomvihan. In addition, a special security thread is used in the banknote structure, passing from right to left over the entire width of the bill.
Features of the use and exchange of bales in Laos
It should be noted that Lao Kip is the only official monetary unit in this country. Nevertheless, not only the national currency of Laos, but also US dollars and Thai baht take part in the turnover on the territory of the state . Kip is mainly used for small purchases.
Banks in Laos are open all weekdays: Monday through Friday. Institutions open at 8 in the morning. From 12 noon to 13:30 lunch break. Then banks work from 13:30 to 17:30 in the evening.
Currency in Laos is subject to exchange not only in banking institutions. Banknotes can be converted at local exchange points. True, at these points the Lao Kip exchange rate in relation to other currencies may slightly differ from the official one.
You can also exchange money at the airport. It should be noted that many local banks work only with US dollars or Thai baht, so you can’t get bales in them. It must be emphasized that it is often more profitable to exchange dollars and baht for bales at exchange points than on merchants' streets. The most acceptable exchange rate can be found in exchange offices operating in city markets and in the territory of trade areas. True, there is much higher risk of becoming a victim of scammers.
Payment by credit cards and travelers checks
Large banks of the country work with plastic cards of the main world payment systems. Travel checks can be exchanged for cash only at the offices of international banking institutions in Laos. In order to avoid unnecessary costs caused by exchange rate fluctuations, it is advisable to bring traveler's checks here in US dollars or Thai baht. Kip is not a freely convertible currency, so exchanging it for other banknotes outside of Laos is unlikely to succeed.