Lao Bank to further maintain kip currency stability

(KPL) Governor of the Bank of Lao PDR, Mr Phouphet Khamphounvong pledged to further maintain the stability of Lao kip (LAK) currency by controlling at single digits which would be lower than the economic growth.
The exchange of currency in the nation is in order while the LAK rate exchange against the US dollar and Thai baht would be controlled not exceed 5 percent.
While the GDP for upcoming fiscal year would grow by 7.5 percent. This figure is a steady growth.
“The reserve fund of foreign currency is set to be sufficient for five months of import,” Governor Phouphet said. “Banking system and monetary institute would be constantly improved”.
The bank will try to mobilise fund to deposits by increasing about 25 percent and 31.3 percent for credit.
The central bank will constantly implement through its policy on currency exchange control and kip currency use promotion in parallel with the mobilisation and credit release in order to drive socio-economic development of next fiscal year.
Over the past 10 month the bank carried on with the implementation of a more relaxed monetary policy in order to boost economic growth. By reducing rate interests from 7 percent to 6 percent early this year.
The bank has sold bonds to the value of 198.9 billion kip and US$56.5 million. It also provided 786 billion kip of loan for a number of infrastructure construction projects and US$65 million of loan went to investment projects.
The inflation rate over the past 10 months was 1.95 percent.
The plan was released by Mr Phouphet at national meeting of cabinet and governors, Vientiane Capital on 18-20 August, under Prime Minister Bouasone Bouphavanh.