Bank of the Lao PDR

The Bank of the Lao PDR is the central bank of Laos and the country's principal monetary and banking authority. Based in Vientiane, it performs the core functions normally associated with a national central bank: it issues and manages the Lao kip, controls aspects of the money supply, conducts monetary policy, manages the country's official reserves, supervises commercial banks and other regulated financial institutions, and acts as lender of last resort. Through these responsibilities, the institution supports the operation of the national payments and banking system and contributes to financial stability. The bank was established on 7 October 1968. It succeeded the National Bank of Laos, which had taken over in the early 1950s from the French-controlled Institut d'Émission des États du Cambodge, du Laos et du Viet-nam. The institution's organizational title and governing arrangements changed during the country's political and administrative development. Historical leadership titles included managing director of the National Bank, chairman of the State Bank, and governor of the State Bank. The current institution is managed through an executive board, a governor, and a deputy governor. Currency administration has been one of the bank's most visible functions. On 16 December 1979, the Pathet Lao liberation kip was replaced by a new Lao kip at a conversion rate of 100 to 1. Banknotes in the new currency were introduced in denominations from 1 to 100 kip in 1979, followed by higher denominations as inflation and the changing scale of domestic transactions increased. A 500-kip note was added in 1988, a 1,000-kip note in 1992, 2,000- and 5,000-kip notes in 1997, and 10,000- and 20,000-kip notes in 2002. A 50,000-kip note was issued in 2006, and a 100,000-kip note was issued in 2010 for commemorative purposes before becoming a regular issue in 2012. The bank stated that the regular 100,000-kip note was intended partly to encourage the use of the national currency rather than foreign currencies such as the United States dollar and Thai baht. Coins were reintroduced in 1980 after a 28-year absence, with 10-, 20-, and 50-att denominations. Commemorative kip coins followed in 1985 for the tenth anniversary of the Lao People's Democratic Republic. The reference material notes that coins are not currently in circulation, following the economic pressures and persistent inflation associated with the period after the collapse of the Soviet Union. The bank's institutional role extends beyond currency production. As the bank of last resort, it provides a backstop within the financial system; as supervisor, it oversees commercial banks operating in Laos; and as reserve manager, it administers the country's official monetary reserves. Its public-facing identity is therefore closely associated with national sovereignty, monetary administration, and the stability of Laos's financial sector. The bank remains active, although detailed current information about its financial position, organizational structure below the senior leadership level, and specific recent policy programs is not established by the supplied reference material.

The Bank of the Lao PDR is the central banking institution of Laos. Its institutional predecessor was the National Bank of Laos, which had taken over in the early 1950s from the Institut d'Émission des États du Cambodge, du Laos et du Viet-nam, a monetary institution operating under French colonial administration. The Bank of the Lao PDR was formed on 7 October 1968 and has operated from Vientiane, the national capital. The bank's institutional history reflects changes in Laos's political and administrative structure. In the historical record, its senior official was described first as managing director of the National Bank, then as chairman of the State Bank, and later as governor of the State Bank. Leadership after 1975 included Thongchanh Uparavanh, Nouphanh Sithphasai, Khamphoui Keoboualapha, and Soth Phetrasy in the managing-director period. Bousabong Souvannavong, Nouphanh Sithphasai, and Pany Yathotou subsequently served during the chairman period. Pany Yathotou also served as governor during the early 1990s and again from 1995 to 1997. Later governors listed in the reference include Cheuang Sombounkhanh, Soukanh Mahalath, Phoupheth Khamphounevong, Chanhsy Phosikham, Phoumy Thipphavone, and Somphao Phaysith. Bounkham Vorachit is identified as the current governor in the supplied reference. Currency management has been a central part of the institution's work. On 16 December 1979, Laos replaced the Pathet Lao liberation kip with a new Lao kip at a ratio of 100 old units to 1 new unit. New banknotes initially appeared in denominations of 1, 5, 10, 20, 50, and 100 kip. Additional denominations were introduced over subsequent decades: 500 kip in 1988; 1,000 kip in 1992; 2,000 and 5,000 kip in 1997; 10,000 and 20,000 kip in 2002; and 50,000 kip in 2006. The reference identifies Kaysone Phomvihane on the obverse of the 2,000-, 5,000-, 10,000-, 20,000-, 50,000-, and 100,000-kip notes. Coins were reintroduced in 1980, after 28 years without circulating coinage. The first new denominations were 10, 20, and 50 att, made of aluminum and carrying the state emblem on the obverse with agricultural imagery on the reverse. Commemorative coins in denominations from 1 to 50 kip were issued in 1985 for the tenth anniversary of the Lao People's Democratic Republic. The reference states that coins are no longer currently circulating, citing the economic consequences of the Soviet collapse in 1991 and continuing chronic inflation. The bank later expanded the high end of the banknote series. A 100,000-kip note was issued on 15 November 2010 to commemorate Vientiane's 450th anniversary and the 35th anniversary of the Lao People's Democratic Republic. On 25 January 2012, the governor announced that a 100,000-kip note dated 2011 would be issued as a regular banknote from 1 February 2012. The stated policy objective was to encourage residents to use the Lao kip rather than foreign currencies, particularly the US dollar and Thai baht. In its present role, the Bank of the Lao PDR is responsible for controlling the money supply, managing official reserves, supervising commercial banks operating in Laos, and serving as lender of last resort. It is governed through an executive board, a governor, and a deputy governor. The supplied sources provide limited detail about current departments, policy instruments, balance-sheet data, and recent institutional reforms, so those aspects require additional verification.

• 2012

  100,000-kip note becomes a regular denomination

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The 100,000-kip denomination was announced as a regular issue, with the stated aim of encouraging use of the Lao kip over foreign currencies.

• 2010

  100,000-kip commemorative banknote is issued

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The bank issued a 100,000-kip note commemorating the 450th anniversary of Vientiane's founding and the 35th anniversary of the Lao People's Democratic Republic.

• 2006

  50,000-kip banknote is introduced

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  A 50,000-kip banknote was issued on 17 January 2006, although the note carried a 2004 date.

• 1985

  Commemorative coins mark the tenth anniversary of the Lao People's Democratic Republic

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The bank issued commemorative coins in denominations ranging from 1 to 50 kip.

• 1980

  Circulating coins are reintroduced

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The bank issued 10-, 20-, and 50-att aluminum coins after a 28-year period without circulating Lao coins.

• 1979

  New Lao kip replaces the liberation kip

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  On 16 December 1979, the liberation kip was replaced by a new Lao kip at a conversion rate of 100 to 1.

• 1968

  Bank of the Lao PDR is formed

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The Bank of the Lao PDR was established on 7 October 1968 and began operating in Vientiane.

• 1955

  National Bank of Laos succeeds the French-issued monetary institution

  [1]Bank of the Lao P.D.R.en.wikipedia.org

  The National Bank of Laos took over from the French-controlled Institut d'Émission des États du Cambodge, du Laos et du Viet-nam in the early 1950s, establishing the immediate institutional predecessor of the modern central bank.

Laos's sovereign central bank and primary authority for currency, monetary administration, reserve management, and banking supervision.

• Currency issuance · 1979

  Lao kip banknotes

  The Bank of the Lao PDR issues and administers the Lao kip banknote series. Denominations documented in the reference range from 1 kip to 100,000 kip, with higher-value notes added over time. The series includes notes featuring Kaysone Phomvihane on the obverse of several major denominations. The bank's currency role includes introducing new denominations and promoting the national currency's use in domestic transactions.

• Currency issuance · 1980

  Lao kip coins

  The bank reintroduced circulating coins in 1980 with 10-, 20-, and 50-att aluminum pieces bearing the state emblem and agricultural imagery. Commemorative kip coins were issued in 1985 for the tenth anniversary of the Lao People's Democratic Republic. The supplied reference states that coins are not currently in circulation, so the present status of the coin program is treated as inactive or uncertain.

• Central banking service

  Monetary policy

  The bank formulates and implements monetary policy and exercises control over aspects of Laos's money supply. The supplied reference does not specify the current policy framework, operating targets, or individual instruments.

• Financial regulation

  Banking supervision

  The Bank of the Lao PDR supervises commercial banks operating in Laos. This regulatory function forms part of its broader responsibility for maintaining confidence and stability in the national financial system.

• Reserve management

  Official-reserve management

  The bank manages Laos's official reserves as part of its central-bank mandate. No reserve composition, valuation, or performance figures are included because the supplied material does not provide verified financial data.

• 2012National-currency usage promotion

  Laos

  The regular issuance of the 100,000-kip banknote was presented as a measure to encourage people to use the Lao kip instead of the US dollar and Thai baht.

  Source

• 2012

  Make the 100,000-kip note a regular issueStrategy

  Background

  The bank sought to support wider use of the national currency in an environment where the US dollar and Thai baht were also used.

  Action taken

  The governor announced that a 100,000-kip note dated 2011 would be issued as a regular banknote beginning 1 February 2012.

  Source

• 2010

  Issue a commemorative 100,000-kip noteProduct launch

  Background

  The bank marked the 450th anniversary of Vientiane's founding and the 35th anniversary of the Lao People's Democratic Republic.

  Action taken

  A 100,000-kip commemorative banknote was issued on 15 November 2010.

  Source

• 1979

  Replace the liberation kip with the new Lao kipGeneration change

  Background

  Laos reorganized its currency system by replacing the Pathet Lao liberation kip.

  Action taken

  The bank introduced the new Lao kip at a conversion rate of 100 old units to 1 new unit.

  Source

1. 1Bank of the Lao P.D.R.en.wikipedia.org
2. 2Official website of the Bank of the Lao PDRbol.gov.la