VIENTIANE (Xinhua): The Lao central bank, the Bank of the Lao PDR (BOL), is seeking ways to lower the rate of inflation and rein in unfavorable foreign exchange rates.
Lao national TV on Friday quoted the Governor of Laos' central bank Bounleua Sinxayvoravong saying the main reason for unfavorable foreign exchange rates and high inflation in Laos is the fact that revenue is low but expenditure is high.
Most of the money used for socio-economic development comes from direct foreign investment, and from loans which the government has to repay, Bounleua stated at the ongoing sixth ordinary session of the National Assembly's ninth legislature.
Another hindrance is that foreign currency reserves are very low, while the policy on foreign currencies is weak, particularly when it comes to requiring businesses to deposit money in bank accounts.
The central bank will work closely with the relevant sectors to wipe out illegal trading and enforce closer management of foreign currencies.
The government has called on all importers and exporters to register their operations so that their financial dealings can be tracked through the banking system.
The government will also aim to collect more revenue from foreign-invested and large-scale development projects as well as improve the foreign exchange system for tourists. - Xinhua
