VIENTIANE, Nov. 27 (Xinhua) -- The Lao central bank, the Bank of the Lao PDR (BOL), is set to intensify efforts to address pressing economic and financial challenges, including high inflation, fluctuating exchange rates, and rising commodity prices.
The BOL focuses on monetary policies for 2024, using tools like issuing bonds and managing government deposits to control the money supply, Lao National Radio reported on Wednesday.
The exchange rate will be stabilized through flexible, market-oriented mechanisms with state oversight, while commercial banks are encouraged to expand currency exchange outlets at international checkpoints, said the report.
These initiatives aim to modernize the foreign exchange system and reduce the reliance on informal markets. All these measures are part of an effort to help Laos achieve a single-digit inflation rate by 2025.
In addition, collaboration with relevant agencies is underway to regulate the prices of essential products, particularly imported goods.
Although inflation has declined from 41.26 percent in February 2023 to 20.7 percent in October 2024, the BOL noted that high inflation persists due to weak domestic production, fluctuating exchange rates, and a reliance on imports. ■
