(KPL) Draft law on foreign exchange management has presented to the 3rd Ordinary Session of National Assembly on June 28.

 The draft law on foreign exchange management has presented by Mr. Bounleua Sinxayvoravong, Governor of Bank of the Lao PDR.

The amended draft law on foreign exchange management consists of 9 Parts, 8 Chapter, 62 articles. there are 32 articles were amended, 24 articles were added, 12 articles were amended and the contents of some complex articles were moved to other articles and six old articles were retained.

Mr. Bounleua said that the objectives and expectations for the revision of the Foreign Exchange Management Law including some important contents that have been revised in this draft law, which will allow foreign exchange activities in Lao PDR to be managed in a more systematic manner in line with economic conditions.

This law was created on the condition that Lao PDR has a wide range of trade relations, significant foreign investment and a large amount of foreign exchange flows in the economy. In addition to the enactment of this law, the Bank of the Lao PDR has also developed 10 sub-laws under the relevant laws.

The review of the law on foreign exchange management and the relevant legislation that has been used for almost 7 years, it has been seen that it has made many positive changes in Lao society, encouraged the society to change to use more kip, showing that the ratio of foreign currency to total deposits has decreased from 68.01% in 2005 to 59.17% in 2021.

The law will help centralized foreign exchange management to disappear into the banking system compared to the pre-tax period.

The purpose of this revision of this law is to be a tool for more effective foreign exchange management in Lao PDR in terms of international economic and financial integration, to be able to manage foreign currency more centralized, create the maximum benefit for the nation and the people, reduce the reckless use of foreign currency and multiple currencies in society; Contribute to strengthening the financial system of Lao PDR.

Source:
courtesy of KPL NEWS AGENCY

by KPL NEWS AGENCY

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