15 Sep, 2023

Lao Kip Drops to Record Low, Breaches 20,000 to US Dollar

The Lao kip has continued to depreciate against foreign currencies, reaching a historic low today in international markets.

While the Bank of the Lao PDR set the exchange rate today at LAK 19,917 to the US dollar, commercial banks have been selling at a rate that has dropped below LAK 20,000.

The value of the kip began to plummet in August 2020 as economic woes struck the country amid the COVID-19 pandemic, trading at LAK 9,494 in July according to rates set by BOL, while the shadow rate reached nearly LAK 11,000 to the dollar.

The currency reached a 15-year low in November 2021 when it traded at LAK 10,689 to the US dollar, marking the lowest official rate since July 2005.

Throughout 2022 and 2023 the kip has continued its decline, steadily falling until breaching LAK 20,000 to 1 USD today.

Meanwhile, the shadow rate is trading at around LAK 22,000 to the US dollar.

The gap between official rates and parallel market currency values has increased in recent months, putting importers under pressure and causing rising inflation.

The Lao government has responded with various measures, including shutting down currency exchange vendors,  the issuance of bonds, and revising its law on foreign currency management.

18 Sep, 2023

Laos: The Quiet Beauty of Southeast Asia

Laos, officially known as the Lao People’s Democratic Republic, is situated in the heart of Southeast Asia. It shares its borders with Myanmar, Cambodia, Thailand, Vietnam, and China.Laos has an expansive territory covering 236,800 square kilometers and has a population of around 7.42 million people. It is notable for its diverse natural landscapes, including lush forests, meandering rivers, and picturesque mountains, which contribute to its reputation for scenic beauty and tranquility.One of Laos’ distinctive features is its rich cultural diversity, with the nation embracing a total of 49 distinct ethnic groups. These groups contribute to the country’s unique culture, bringing its traditions, languages, and customs to Laotian society.The official language of Laos is Lao, serving as a unifying means of communication among its citizens. Additionally, Buddhism holds a significant presence in the country, with a majority of the population adhering to this religion. The influence of Buddhism can be observed in various aspects of daily life, from religious practices to cultural traditions, further shaping the nation’s identity.Apart from its cultural diversity, Laos experiences social stability and sustains a steady rate of economic growth in both industry and agriculture. The society is marked by a prevailing sense of peace and contentment, distinguishing itself as a tranquil nation within Southeast Asia.PoliticsLaos follows a socialist system, with the Lao People’s Revolutionary Party being the sole political party in the country. In 1991, the Lao Party introduced the “Five Principles” of comprehensive reform, emphasizing party leadership and maintaining a socialist direction. They also adopted an open-door policy. In 2001, the Seventh Party Congress established ambitious goals, aiming to eliminate poverty by 2010 and attain further economic development by 2020. In January 2021, the Eleventh Party Congress passed key political and economic regulations and revised the Party Charter. Currently, Laos enjoys political stability and social harmony.Economy① Balancing Agriculture-Heavy Economy with Modest IndustryLaos primarily relies on agriculture, with a weak industrial foundation. Starting in 1986, Laos implemented economic reforms, promoting a combination of agriculture, industry, and services while prioritizing agriculture. They shifted from centralized economic management to an operational accounting system, allowed various forms of ownership to coexist, and gradually improved market economic mechanisms.② Economic ChallengesAfter 1997, Laos faced severe economic challenges due to the Asian financial crisis. The government implemented macroeconomic controls, restructured financial order, and expanded agricultural production to maintain social and economic stability. The COVID-19 pandemic also affected Laos, causing a decline in GDP growth in 2020, with a per capita income of $2,642. However, in 2021, the GDP grew by 3.5%, with a 19.8% increase in foreign trade.③ Digital TransformationIn June 2023, Laos established the Laos Digital Technology Group with the support of the Central Bank, Ministry of Finance, and Ministry of Technology. They plan to issue the ASEAN USD, the first-ever stablecoin in the ASEAN region, anchored to a 1:1 ratio with the US dollar. This aims to boost the transition to a unified digital economy within the ASEAN community.Culture① Religious TraditionsAround 90% of Laos’ population adheres to Theravada Buddhism, a faith that profoundly shapes daily routines and societal customs. Throughout the nation, one can find temples and pagodas dotting the landscape, and the presence of Buddhist monks is a ubiquitous aspect of daily life.One of the enduring traditions that has persisted for centuries is the practice of daily alms-giving, locally known as “taiba.” This ritual holds significant cultural significance and serves as a noteworthy highlight of Laotian culture. Each morning, as the sun’s first rays illuminate the landscape, devout Buddhists engage in the act of offering alms to the monks who pass through the streets. This serene and spiritual practice fosters a sense of community and reinforces the country’s deep-rooted connection to Buddhism.② Natural Wonders and Growing TourismLaos is home to several UNESCO World Heritage Sites that reflect its rich cultural and historical heritage. Notable among these sites are Luang Prabang, known for its well-preserved architecture and spiritual significance, Wat Phou in Champasak, an ancient temple complex with a historical legacy, and the Plain of Jars in Xieng Khouang, famous for its enigmatic stone jars dating back centuries, which intrigue visitors.In addition to its cultural attractions, Laos boasts a variety of natural wonders. Among them, Kuang Si Falls stands out as a waterfall with inviting turquoise pools. The Tat Kuang Si Bear Rescue Centre offers the chance to observe rescued bears while supporting conservation efforts. The Kong Lor Cave, a subterranean formation with remarkable limestone features, can be explored by boat, revealing hidden chambers.In recent times, tourism has gained importance in Laos’ economy. Consequently, efforts have been made to improve infrastructure and streamline visa procedures to accommodate more visitors. The country’s scenic landscapes, cultural heritage, and hospitality have contributed to its growing popularity among travelers seeking authentic experiences in Southeast Asia’s less-explored regions.③ Land of Warm HospitalityLaotian people are celebrated for their warm and welcoming hospitality, consistently embodying the spirit of the phrase “bor pen nyang,” which translates to “no problem” or “you’re welcome.” This expression encapsulates their easygoing and affable nature, making visitors feel at home in their presence. Laos takes pride in its rich tapestry of ethnic diversity, officially recognizing 49 distinct ethnic groups and fostering an environment where various languages and cultures flourish harmoniously.With its warm-hearted people, cultural diversity, commitment to tradition, and dedication to fostering happiness, Laos offers a unique and inviting experience for travelers seeking both a tranquil escape and an appreciation for a nation that values its heritage while embracing modernity.

Read more

14 Sep, 2023

Coinbase Clarifies Discontinuation Reports, Cites Non-Compliance As Reason

Coinbase issues clarification after reports of discontinuing exchange services for Indian consumers.Coinbase has issued a clarification on reports that it is discontinuing all exchange services for Indian consumers. The exchange had emailed some of its Indian clients, notifying them that all services would be discontinued after September 25, and suggesting they withdraw any remaining funds from their accounts.Coinbase has clarified that the warning was only issued to clients who were violating its updated policies, and the message did not reflect the status of Coinbase's operations in India.Coinbase has long faced regulatory pressure in India that triggered the departure of at least two prominent executives. Its entry into the region has faced significant challenges from the beginning. Despite investing in two leading Indian exchanges, CoinDCX and CoinSwitch Kuber, the firm was unable to establish a consistent presence for its exchange services in the country.Coinbase previously suspended its trading services in India in May 2022, citing "informal pressure" from the Reserve Bank of India.Coinbase CEO Brian Armstrong traveled to India last year to officially launch the exchange's business in the country by adding support for the widely used UPI payment method. However, the payments authority in charge of UPI immediately refused to recognize Coinbase's launch in India, and Coinbase eventually discontinued support for the payments system. The firm stated at the time that it was committed to cooperating with the NPCI and other appropriate authorities.While there has been a lot of attention on Coinbase's discontinuation of services for Indian customers, it appears that some people in Pakistan and Bangladesh are facing similar issues.While there is no official statement from Coinbase regarding these countries, a few Bangladeshi users reported in August that they were not able to verify their Coinbase account.It is unclear whether these issues are related to the recent news about Coinbase's operations in India or if they are separate issues. Nonetheless, it seems that Coinbase's regulatory challenges are not limited to India and may be affecting other countries in the region as well.

Read more

Transforming Currency Through Innovation

FOLLOW LADT ON SOCIAL

Contact Us
Copyright © 2022 - 2025 Lao National Digital Technology Group. All rights reserved.