VIENTIANE, June 5 (Xinhua) -- Laos' central bank, the Bank of the Lao PDR (BOL), has set up a new department to help increase the flow of foreign currency through the banking system and effectively handle foreign currency reserves.
The Foreign Exchange Management Department will also lead efforts to stabilize the value of the Lao kip against foreign currencies and encourage greater circulation of domestic currency and goods, so that the national currency maintains a stable value and makes a stronger contribution to socio-economic development, the Lao National Television reported on Monday.
A ceremony to formally announce the establishment of the new department took place in the Lao capital of Vientiane last Thursday.
According to the BOL, Laos is more integrated and open in trade and investment with foreign partners, but the demand for foreign currency needed to import goods has increased.
The central bank will look at ways to improve legislation concerning the management of foreign exchange and the income earned from trade, services and investments, debt and international trade credit, and the oversight of money flowing in and out of Laos.
The BOL will ensure that its essential duties are up-to-date and complete, and will work with the relevant parties to make foreign exchange management a complete system, while promoting greater use of the kip and reducing the uncontrolled use of foreign currencies by the general public and businesses.
The successful fulfilment of these functions will help increase the flow of foreign currency through the banking system, shore up foreign currency reserves and maintain the stability of the kip against foreign currencies, according to the report.