VIENTIANE: The Bank of the Lao PDR (BOL) has outlined five priority measures aimed at curbing inflation and maintaining the average inflation rate below 7 per cent in 2026.
Bounkham Vorachit, governor of the central bank, announced the measures during the first extraordinary session of the Lao National Assembly's 10th legislature on Tuesday (July 7), according to a report by Lao Security News on Wednesday (July 8).
The first is to stabilise the exchange rate by narrowing the gap between commercial bank and informal market exchange rates, expanding the foreign exchange trading market for large businesses, and ensuring sufficient foreign currency for essential imports, particularly fuel.
Second, the BOL will maintain prudent monetary policy by controlling the money supply through adjustments to benchmark interest rates, reserve requirements, and the continued issuance of short-term BOL bonds.
Third, the BOL will strengthen foreign exchange management by increasing the share of export earnings flowing through the banking system, promoting the use of the Lao kip in domestic transactions, expanding the use of regional currencies in trade with neighbouring countries, tightening gold trading regulations, and improving external debt management.
The fourth measure is to improve price management for essential goods.
Finally, the BOL will promote productive investment by encouraging commercial banks to expand quality lending to agriculture, processing industries, and small- and medium-sized enterprises (SMEs).
The five measures are designed to safeguard macroeconomic stability, strengthen confidence in the Lao kip, and support sustainable economic development. - Xinhua
