Bank of Lao PDR Issues Instruction on Converting Foreign Exchange Stores into Commercial Bank Representatives

On 2 August 2021, the Monetary Policy Department, Bank of Lao PDR (“BOL“) issued Instruction No. 878/MPD on “Transferring Foreign Exchange Stores into a Representative of a Commercial Bank” (“Instruction“). The Instruction supplements/implements Notice No.758/MPD dated 12 July 2021 on “Converting Foreign Exchange Stores Representative of a Commercial Bank”. To comply with the laws and relevant regulations, BOL has issued various guidelines which cover, among other things, the following:

(a) Application to be a representative of a commercial bank;
(b) Determining exchange rates and trading currencies; and
(c) Operation of a foreign exchange store after becoming an agent.