Lao banks, currency, VISA, ATM, accounts, July 2010 kip exchange rates, cash, debit/credit cards, banking, transfers to Laos. ANZ has ATMs in Vientiane and Pakse.

In Vientiane and Laos there are three banks with international ATMs accepting PLUS and CIRRUS cards for VISA, MasterCard, Maestro, Cashpoint, JCB and Diners Club. They are ANZ (Australia New Zealand Banking Group) BCEL Banque pour le Commerce Exterieur Lao (Lao Government bank) and Joint Development Bank JDB. There are other banks with Thai, Malaysian, South Korean and Vietnamese partners; some of these have domestic ATMs and cash cards. There are international ATMs in main cities and international airports and also at border control before the Friendship Bridge to Thailand.

Currency Usage in Laos
The Lao Kip (LAK) is the official currency of the Lao PDR, but it is not an international market instrument and exchange rates against other currencies are set daily, reflecting global cross currency values, at the 'whim' of the Bank of the Lao PDR. Other  banks set their own rates based on these. Money comes into and leaves the country as foreign currency only. Rates for business can be negotiated.

Prices for goods and services in the Lao PDR are now supposed to be quoted in kip. However, higher priced items may are often quoted in Thai baht or US dollars; these are accepted in payment virtually everywhere, as well as the Lao kip equivalent. There is no 'black' or 'grey' currency market in Laos.

Back in 2006, a US dollar was worth 10,000 kip, 20,000 to the British Pound (GBP) 20,000, the euro (EUR) 15,000 and a Thai baht (THB) 250.

Since 2007, the Lao kip's government-set value has been allowed to rise by over 17% against the US dollar, moving from 10,000 to 9,000 by early 2008, continuing in 2009 and 2010 to below 8500 kips and rising slightly more over the past year. April 2010 saw new 'highs' against the dollar, with 8400 by the 10th. The kip began the Lao New Year (16th) at 8290, ending April at 8265 and May at 8275 to the US$.

June & July 2010 kip/dollar rates saw little movement until mid-July when the US dollar continued its decline from 8275 dropping to a new 'low' of 8,225 on July 16 and approaching 8220 by the end of the month. The kip value 'rise' in 2010 is about 3%. The LAK/EUR rate dropped to 10,000 for the first time, the euro having lost nearly 20% of its kip value by the end of June. However, the euro began recovering during July.

1 Thai baht is currently worth 256 kips and there are 32 THB to the USD.

A quick way to convert kip into baht is to take off the zeroes and multiply by 4; e.g. 10,000 kip (10x4) = 40 baht. Thai baht notes as well as US$ bills are in common use in Laos. Exchange rates for more currencies are available from BCEL and other local banks. See some current Lao bank exchange rates on the right.

Now much more stable, the Lao kip devalued by 87% after the 1997 economic crash, in line with other Asian currencies. Kip notes were issued originally in denominations of 500, 1000, 2000 and 5000. When the purchasing power dropped so much, 10,000, 20,000 and, in 2006, 50,000 kip notes were introduced. However, all denominations are still in circulation, making for large wads of notes given in change or at ATMs which sometimes issue 10,000 or 20,000 kip notes (worth around one or two dollars each)! 50,000 kip notes ($6) are more common from ATMs now, especially ANZ Laos.

Laos is not the only country in SE Asia that suffered significant devaluation after the regional economic meltdown of the mid-90s. Visitors to Jakarta or Bali find that the Indonesian rupiah currently has a USD exchange rate of ~9,000, almost parity with the Lao kip. However, prices for basic foodstuffs, clothes, restaurants etc. are generally higher in Indonesia (even more so in Bali) than Laos.

Paying with cash in the Lao PDR can be confusing, especially for the first few days of a first visit! Due partly to the low value of the kip, three currencies are in common use in the main cities. Prices for every day small purchases will be in Lao kip. However, in better restaurants, hotels and guest houses and larger value item prices are usually quoted in US dollars or Thai baht. The Lao government is now actively discouraging this practice and bills and invoices must now be shown in local currency. 

You can still pay in a different currency at the daily exchange rate. The seller will convert the price for you on a calculator. However, check that the price relates to what you are paying for. Caveat emptor; 'mistakes' are almost always in the vendor's favour, and that applies anywhere – not only in Laos!

 For UK residents:

Some hotels, convenience stores and restaurants with modern cash registers or computer terminals will display and print out the total in multiple currencies, making it easier to understand, but the exchange rates may also be in their favour. Change will normally be given in kip, but you can also ask for baht and possibly dollars.

Lao Kip tip: Unless you want to keep Lao banknotes as souvenirs, change your kips back into baht or dollars before you leave Laos as they cannot be exchanged outside the country. In Nongkhai, you could try at the bus station near the Friendship Bridge. In Bangkok, try the train, bus station or airport where people on their way to Udonthani, Nongkhai and Vientiane might change Lao kips for you, but expect a bad rate. See more TIPS below.

Lao banking centres around three government-owned or -partly-owned banks: the Lao Development Bank (LDB), the Bank for Agricultural Development and the Lao Bank for Foreign Trade (BCEL – Banque pour le Commerce Exterieur Lao). BCEL is also the main commercial bank with HQ on Pangkam Road near the Mekong River.

BCEL has branches in 12 Lao provinces and recently introduced internet banking, but there is a $10 signup fee plus $7 per month (60,000 kip) to use this service.

BCEL ATM LOCATOR

There are also three joint-venture/government  banks: Lao Viet Bank and the Joint Development Bank (JDB). ANZ (Australia & New Zealand Banking Group) now fully owns ANZ Laos, formerly ANZ Vientiane Commercial Bank (ANZV/ANZVCB). Most banks are near the Morning Market in Lane Xang Avenue and the street nearby, while BCEL is near the Mekong on Pangkham Road. See below for a complete list of Vientiane banks and representative offices with contact details. Lao banking hours are Monday through Friday 0830 - 1530.

Bank Accounts for Foreigners in Laos
Foreigners can open US$, Thai baht or Lao kip savings or fixed deposit accounts with most Lao banks. Most require work permits. Several offer a domestic ATM card for kip accounts. VISA cards may be issued to certain foreign residents after a qualifying period. For Thailand bank account holders, opening an account with the Vientiane branch of a Thai bank, does not give you access to the Thai banking network. Foreign-owned banks in Laos were until mid 2008 not allowed to have ATMs except for local domestic account holders.

This has changed with ANZ (formerly VCB and ANZVCB) having several international ATMs now displaying the VISA/MasterCard logo. ANZ Laos offers accounts with domestic or VISA debit cards to locals and foreigners with work permits. There are now ATMs at the ANZ Laos Pakse Branch opened in 2009, so far its only branch outside the capital, although plans are underway to open in Luang Prabang and Savannaket.

Fixed Term Deposits

Compared to many countries, Lao local bank interest rates are high for term deposits in Lao Kip of 10% per year (12% p.a. for 2 years at BCEL & JDB). In previous years, ANZ was offering the best rates, but these were reduced in 2010. Interest rates are considerably lower for US dollar or Thai baht deposit accounts. The best appear to be from the relatively new ACLEDA, subsidiary of a Cambodian bank, offers 12.20% on kip and 7% on US dollar deposits. Apart from Vientiane, ACLEDA has branches in the southern provinces of Laos. See below for contact details.

A source of added effective 'interest' for the past 4 years has been the continuously rising value of the Lao kip against the US dollar. In 2010 so far this is 2.65% compared to around 10% p.a. previously. For those living in Laos for extended periods, fixed deposits are safe and quite lucrative forms of investment as US$ and Kip are freely interchangeable within the Lao PDR. However, by law, non-Lao citizens must show their passport and a current work permit before being allowed to open fixed deposit accounts with Lao banks. Other than that, it's a simple procedure.

Money Transfers to and from Laos

For transfers to a Vientiane bank account from overseas it may be possible via a bank account in Thailand (SWIFT), then arranging a transfer to Laos, but you should check with the Thai bank and compare the charges (and degree of difficulty) with a direct transfer using an overseas correspondent or intermediary bank direct.

An easy way to get money from Thailand in Laos, is to use Lao ATMs; however Bangkok Bank for example charges 100 baht per transaction and uses a low exchange rate. If you can, draw baht from a Thai ATM before crossing the border and use that for purchases in the Lao PDR or change it locally.

Thai banks in Vientiane include Bangkok Bank, Siam Commercial Bank, TMB (ex-Thai Military Bank) and Bank of Ayudhya. Thailand bank account holders with VISA or MasterCards can use them in the three Lao bank ATMs. Money transfers can be made by wire using SWIFT, MoneyGram or Western Union. Apart from ANZ, BCEL and JDB, few Lao banks have internet banking facilities, although eCommerce is available for local businesses (credit card merchant accounts). ANZ Bank (Australia New Zealand bank) has full ownership of ANZ Laos, with VISA/MasterCard facilities.

Bangkok Bank account holders in Thailand can transfer money to the Vientiane Branch for collection by a non-account holder, simply by providing the name and passport number of the beneficiary. Funds will be available in kip, baht or US dollars. Foreigners can open US dollar, baht or kip accounts at this branch too. However, BCEL or JDB are better options because their domestic cash card can be used in their ATMs outside Vientiane. Bangkok Bank tells its account holders that their ATM cards cannot be used in Laos because foreign banks (with the exception of ANZ) are not allowed (or may find it uneconomically viable) to have ATMs. However, Bangkok Bank VISA Electron or MasterCards can be used in Laos ATMs or anywhere in the world where PLUS or Cirrus network cards are accepted. Visa or MasterCard logos are displayed on all ATM's.

Banks in Laos have SWIFT codes (see below) but transfers can be made only via 'correspondent' or 'intermediary' banks in different countries. This usually adds extra cost to transfers. For example, UK transfers are made via Barclays Bank, London who charge a minimum £35. If you originate the transfer from another UK bank, you will pay its fees too. This applies to other countries including the USA where Wachovia Bank in New York is the main intermediary bank.

Bank drafts (banker's checks) for foreign countries including Thailand are available from BCEL (2nd floor in the new HQ). Certain other banks may offer this service.

MoneyGram (agencies at BCEL, Thai Military and Siam Commercial Banks) or Western Union with agencies at banks and post offices, may in some instances be cheaper.

As money is must be transferred to Laos in a major foreign currency, it can be kept in that currency or exchanged at a local bank for Lao kip.

Transfers to Laos for non-Lao-bank-account holders
It's possible to transfer funds to a Vientiane bank for collection as cash in USD, THB or LAK) by a named beneficiary, quoting passport or ID number only (address and phone number recommended). e.g. from Bangkok Bank, Bank of Ayudhya, ANZ Laos Bank.

Banks, ATM Cash Machines in Lao cities and towns
Major credit cards – Visa, MasterCard are accepted at tourist hotels, restaurants and some shops in the main cities; some take American Express, JCB and Diners Club. Cash advances on most credit cards may be obtained at main bank branches if not accepted at ATMs.

Vientiane now has 3 banks with international ATMs, ANZ, JDB and BCEL. They accept PLUS and CIRRUS network cards for VISA, MasterCard, JCB, Discovery and Diners Club. There are at least 50 ATMs in and around Vientiane now which accept both VISA and MasterCard. BCEL has machines in other provinces including Luang Prabang, Pakse (where ANZ also has ATMs) and Vang Vieng. As power supply and phone/data lines can be unreliable outside Vientiane, it's always advisable to carry cash and possibly some travellers checks. Credit card cash advances can be obtained in other areas from bank branches and exchange kiosks. Map of JDB ATMs in Vientiane and a national BCEL ATM locator.

Lao ATMs dispense local currency in denominations between 10,000 and 50,000 kip, transaction amounts and daily limits varying between the three banks.

Cash limits for Lao ATMs – ANZ allows up to 2 million kip per transaction with a 40,000 kip ($4.75) transaction fee, and up to 8 million kip per day. At current rates this is about $945 or £640 per day. JDB allows up to 1 million kip ($118) per transaction with a 30,000 kip fee, and 4 million kip per day card limit (although it may offer 5 million, this is not available for foreign bank cards). BCEL's maximum is 700,000 kip per transaction (30,000 kip fee), with daily maximum of 2 million.

Due to these varying transaction limits and fees, ANZ is best for larger ATM cash withdrawals, followed by JDB then BCEL. Note that your card issuer may charge its own fees for foreign transactions too. Check before you leave home to get the best card for use abroad.

The ATM network in Laos has a withdrawal maximum of 8 million kip per card per day, regardless of which bank's ATMs are used.

"CASH IS KING" In the Lao PDR, paying cash is still best, in kip, baht notes or small US dollar bills. Upcountry, especially in remote villages it's advisable to pay in kip. In the cities, many hotels, tour operators and restaurants quote prices in dollars, or in all three currencies. Paying by credit card in shops and restaurants and some hotels often incurs a 3% surcharge.

LAO KIP TIP: Before crossing the Friendship Bridge into Lao, to get Thai baht from an ATM in Nongkhai (outside the banks in the two main shopping streets or at the Friendship Bridge itself, where the ATMs are near Thai Exit Immigration. Baht are readily accepted for purchases in Lao and less confusing for tourists than Kip. However there is now an ATM on the Lao side of the bridge and several on the way into Vientiane.

Occasionally a particular ATM or group of them will give error messages like "unable to process your transaction", or "ask your bank to link to our network". These are temporary (Lao) network 'outages'; try later or use another ATM or different bank.

LAO ENTRY VISA TIP: The cost of a 30-day visa-on-arrival depends on nationality, ranging between $30 and $45, so it's wise to carry $50 or more in notes. You can also pay in Thai baht, but at a poor exchange rate.

CAMBODIA ATM TIP: If you're visiting Cambodia before going to Laos, you can get US dollars from ATMs in Siem Reap (Angkor Wat) and Phnom Penh.

On the Lao side of the Friendship (Mittaphab) bridge at Nongkhai, there is a foreign exchange booth, a branch of Phongsavanh Bank with domestic-only ATM but BCEL now has an international ATM there too. ATMs are also outside the gates of several factories on the way into Vientiane. In fact, new ATMs from all three banks are appearing everywhere.

Western Union's coverage is extensive throughout most of Asia, and Laos is no exception, with over 100 agencies in banks and even small post offices, as well as the Vientiane Main Post Office opposite the Morning Market (Talat Sao). MoneyGram operates through several local Lao bank branches.

LIST OF LAO BANKS & SWIFT TRANSFER CODES

Banking Hours: Monday to Friday - 8:30am to 3:30pm

Agricultural Promotion Bank (Lao govt bank)
58 Hengboun St, Ban Haysoke
Tel. (021) 21 2024   Fax. (021) 21 3957

ANZ Bank Laos (VISA ATMs)
Ex ANZV, ANZVCB, Vientiane Commercial Bank Ltd.
now fully owned by the Australia New Zealand Banking Group.
ANZ Vientiane Commercial Building, 33 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 222700   Fax. (021) 213513
Email: customer@anzvcb.com

SWIFT CODE: VCBBLALA via Intermediary Bank
(USD): Wachovia Bank, New York
SWIFT CODE: PNBPUS3NNYC

ANZ Pakse Branch (VISA ATMs)
13 South Road, Unit 15, Phonesavan Village,
Pakse District, Champassak Province, Lao PDR
Tel. (031) 254 371  Fax. (031) 254 361

Banque pour le Commerce Exterieur Lao (Lao govt/commercial bank) (VISA ATMs)
1 Pangkham St, Vientiane Capital (near Mekong River)
Tel. (021) 22 3190  Fax. (021) 21 3202, 22 3012
Branches in 12 provinces.

SWIFT via Intermediary Banks: COEBLALAXXX
UK (GBP/USD): Barclays Bank, London, BARCGB22
USA (USD): Wachovia Bank, New York, PNBPUS3NNYC

Joint Development Bank (Lao govt 30%, Thai private 70% bank) (VISA ATMs)
75/1-5 Lane Xang Ave, Ban Hatsadi
Vientiane Capital (opp Morning Market)
Tel. (021) 21 3536   Fax. (021) 21 3534, 21 3530

Lao Development Bank (Lao govt bank)
19 Pangkham Rd, P.O Box 2700, Vientiane
Tel. (021) 21 3300, 21 3302  Fax. (021) 21 3304, 22 2506

Phongsavanh Bank (Lao private bank)
147 10 Samsenthai Rd, Ban Anou,
Vientiane Capital
Tel: (021) 21 2666, 21 2777
Tel & Fax: (030) 525 7753
E-Mail: info@phongsavanhbank.com

THAI BANKS IN LAOS

Bank of Ayudhya (Ayuttya) (Thai bank)
084/1 Lane Xang Avenue, P.O. Box: 5072, Vientiane
Tel: (856-21) 213521, 214575, Fax: (856-21) 213520          
E-mail:    mng802@krungsri.com
SWIFT CODE (TH): AYUDTHBK

Bangkok Bank, Vientiane (Thai bank)
Ban Hatsadi, near JDB, opp Morning Market,
Vientiane Capital
Tel. (021) 21 3560   Fax. (021) 21 3561
SWIFT CODE (TH): BKKBTHBK

Siam Commercial Bank Public Corporation (Thai bank)
117 Lane Xang Ave, Ban Sisaket, Vientiane Cap
Tel. (021) 21 3501
SWIFT CODE (TH): SICOTHBK   

TMB Bank Public Co Ltd (Thai bank)
69 Khounboulom St, Ban Sihom, Vientiane Cap
Tel. (021) 21 7174, (021) 21 6486   Fax. (021) 21 6486
SWIFT CODE (TH): TMBKTHB

OTHER FOREIGN BANKS IN LAOS

There are several banks with Malaysian, Korean, Vietnamese and Cambodian origins operating in Laos, some of which may have direct transfer facilities
from their originating countries.

ACLEDA Bank Lao Ltd (Cambodian bank)
#372, Corner of Dongpalane and Dongpaina Road,
Phonesavanh Neua Village, Sisattanak, Vientiane
Tel: +856 (0)21 264 994
Fax: +856 (0)21 264 995
E-mail: acledabank@acledabank.com.la
SWIFT CODE: ACLBLALA

Lao-Viet Bank (Lao/Vietnamese govt bank)
05 LaneXang Ave Unit 03 Ban Hatsadi, Neua
Vientiane Capital (near Morning Market)
Tel. (021) 25 1422   Fax. (021) 21 2197
SWIFT CODE: LAOVLALA

Public Bank Berhad (Malaysian bank)
100/1-4 Taladsao St, Ban Hadsadi
Vientiane Capital (near Bangkok Bank)
Tel. (021) 22 3394   Fax. (021) 22 2743
SWIFT CODE: PBBELALA via Intermediary

(USD): Wachovia Bank, New York, SWIFT: PNBPUS3NNYC
Deutsche Bank Trust Co, New York, SWIFT: BKTRUS33

Others for transfers from Thailand, Malaysia, Germany (EUR)

Standard Chartered Bank (UK/Int'l bank representative office)
08/3 Lane Xang Avenue, P.O. Box 6895, Vientiane Lao PDR
Tel. (021) 22 2251  Fax. (021) 21 7254
SWIFT CODE: SCBLGB2L (UK), SCBLUS33 (US), SCBLTHBX (TH)

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