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BOL Gives Update On Authorised Money Exchange Units

Source: Vientiane Times

Some 419 money exchange units have become representatives of commercial banks and will operate under the authorisation of the bank, in an attempt to tackle the difference in currency exchange rates between banks and money-changing outlets.

The office of the Bank of the Lao PDR (BOL) issued a notice on September17 giving an update on the registered money exchange units that have engaged in such partnerships.

The move follows a notice issued by BOL, the nation’s central bank, on August 12 instructing currency exchange units nationwide to register with commercial banks to ensure that their operations are carried out under the authorisation of the banking system.

As part of the central bank’s efforts, it is hoped that the registration of currency exchange units under the banking system will result in more efficient currency management, which will help to solve the country’s economic and financial difficulties.

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About one month later, some 419 currency exchange outlets have now registered as the representatives of commercial banks countrywide.

Most registered money-changing units have registered as representatives of the Banque pour le Commerce Exterieur Lao Public (BCEL), Lao Development Bank (LDB), Agricultural Promotion Bank (APB), Lao-Viet Bank (LVB), Joint Development Bank (JDB), VietinBank Lao, ST Bank and Maruhan Japan Bank Lao Co., Ltd.

In addition, BOL has asked members of the public to report any unauthorised exchange units that are carrying out transactions to theMonetary Policy Department of the Bank of the Lao PDR or the Economic Police Department under the Ministry of Public Security.

The notice, which was stamped and signed by the Office Head of the Bank of the Lao PDR, Mr Phetsathaphone Keovongvichith, also urged everyone to be careful when changing money at an unauthorised unit.

The Monetary Policy Department has encouraged public commercial banks, joint-venture commercial banks, private commercial banks and subsidiary branches of foreign commercial banks in Laos to partner with currency exchange units and signed the representative dealings under the supervision of commercial banks.

The department called for the operators of all currency exchange units to coordinate with any commercial bank and sign a contract which would permit them to operate as an authorised exchange unit of a bank under the conditions agreed to by the two parties.

Laos currently has 21 commercial banks representing public and private commercial banks and the subsidiaries of commercial foreign banks operating in Laos.