(KPL) The rising exchange rates and wide gaps between official exchange rate and the parallel market rate are caused by poor awareness of legal instruments among some individuals and legal entities and loose enforcement of monetary regulations, according to the Bank of the Lao PDR.

Illegal transactions of foreign currencies and illegal exchange businesses are to blame for rising exchange rates and low inflow of foreign currencies into the banking system.

“Laos’ economic foundation needs time to recover, to reach the status where the country has enough revenues in foreign currencies to balance the demand for settling imports and already high foreign debts,” said Governor of the Bank of the Lao PDR Sonexay Sitphaxay.

In the first four months of 2022, although Laos recorded a trade surplus of 589.66 million US dollars, almost 50% higher than that reported in the same period last year, only 33% of the export value was transferred into the country through the banking system.

In contrast, 98% of the import value was transferred through the banking system.

“The Bank of the Lao PDR believes that if everyone, all sectors, both public and private, understand the current situation and take part in solving it. We will surely overcome the exchange problems we are facing at the moment,” said Governor Sonexay.

Source:
courtesy of KPL NEWS AGENCY

by KPL NEWS AGENCY

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