CURRENCY, CREDIT CARDS, CHANGING MONEY IN LAOS
LAOS CURRENCY
Laos provides the traveller a chance to truly experience Asia as it once was. Largely under development, devotedly Buddhist and blessed geographically with natural beauty, traveling to Laos will forever leave a lasting impression on anyone stopping or speding a time here in this charming land. When traveling to Laos, a country with a developing economy in the Southeast Asia, it is widely used that most transactions and businesses prefer cash in LAO KIP, so tourists are advised to know how to use their money. In following article, we talk about Currency of Laos and will tell you how to change it, what currency to bring to spend as a daily money in Laos and we let you know more all you need to learn about KIP, the national currency of Laos
A brief history behind the Lao Kip
Lao Kip was first introduced in Laos back in 1945. At that time, the coin was known as the “Kip of Free Laos” and it only lasted 2 years as in use and circulation before French took control of the country. During the French occupation, the LAO KIP was replaced by the Piastra of French Indochina, which was the official currency of the Laos between 1946 and 1953 when the monarchy was established. Thus, with the arrival of the country’s independence, the monarchy reinstated the Kip – known as “Royal Kip” – as a national currency of Laos at a rate of 1 kip per piastres. Furthermore, and with the growth of expansion from the nationalist communist group known as Pathet Lao, during the 1970s, all Laos controlled by this movement, a new currency known as the “Kip for the liberation of Pathet Lao” was gradually introduced” At a rate of 20 kip real for 1 kip of liberation from Pathet Lao, giving rise to the first redenomination of the national Laos currency.
Finally, with the coming to power of the Pathet Lao and the establishment of the Lao People’s Democratic Republic in 1979, the new government renamed the National currency of Laos that would now be known as the “New Lao Kip” at a rate of 100 kip for the release of the Pathet Lao for 1 new kip. Rather, in Laos there was the several redenomination which each of them brought new coins that was called kip. Since 1991, the country has suffered from chronic inflation that has led to a constant loss in the value of the LAOS Kip to such an extent that the coins that had been issued by the central bank lost all their value. Consequently, today Laos Currency is among one of the few countries in the world where there are no coins in circulation and all transactions are made only in banknotes. In addition, since 2010, Laos has a 100,000 kip banknote, the third highest denomination banknote in the world, which was issued by the Central Bank to commemorate the 450th anniversary of the founding of Vientiane, the capital, and the 35th anniversary of the establishment of the Lao People’s Democratic Republic.
Facts About Laos Currency
Laos official currency is the Laotian Kip (LAK). Although only the kip can be used legally in day-to-day transactions, in reality three other currencies are used in trading: kips, Thai Baht (THB) and United States dollars (US $). The flow of Thai Baht and US Dollars is very important to the national economy in Laos. An estimated one-third of the money circulating in Laos bears the Thailand Baht, while another is the US$. The Laotian Kip is the preferred currency for small purchases, while for more expensive services and items the prices are in Laos currency, the KIP, Baht or Dollars. The price will appear directly in dollars if the equivalent cost is US $ 100 or more.
However, most transactions are done in kips, so it is always good to carry it in your pocket. There are 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000 and 100,000 LAK banknotes. Small businesses (especially in rural areas of Laos) do not usually have a change of 100,000 LAK bills. For larger transactions, Dollars and Baht are preferred. Currency exchange in Laos is somehow stable these years and this is after years of volatility, lately the kip remains fairly stable at a rate of 8000 LAK per 1 US $. Exchange rates are usually the same at banks and currency exchange offices. The change is usually slightly better for large bills ($ 50-100) than for smaller ones ($ 20 and smaller). The banks in Vientiane and Luang Prabang usually exchange Euros, British Pounds, US$, Canadian and Australian dollars, Thai Baht and Japanese Yen as well as Chinese Yuan. Provincial banks, only dollars and Thai Baht. The official currency exchange services in Laos have offices throughout Vientiane (including in Talat Sao) and at some border crossings. The rates are similar to those of banks and open until later.
There are ATMs throughout Laos. It is important to keep in mind the maximum transaction limit would be between 700,000 and 2,000,000 LAK (approx. 85-250 US $), depending on the bank. The commission is variable. Also, Credit cards in Laos are widely acceptable even though preferred more in Vientiane and Luang Prabang and more and more upscale hotels, restaurants and gift shops in Vientiane and Luang Prabang accept Visa and MasterCard (and, to a lesser extent, Amex and JCB). In the rest of the country, credit cards are almost useless. There are branches of the Banque pour le Commerce Extérieur Lao (BCEL) in the main cities. They offer cash advances / withdrawals with credit / debit cards MasterCard and Visa with a commission of 3%. The other banks have different commissions. Travelers checks in Laos are accepted and can be cashed at most banks in the country, but usually only in kips. The most accepted are those issued in dollars.
What is the best currency to use in Laos?
American dollar, Euros and Thai Baht are three best major currencies you can always use in Laos, although Laos money the Laos KIP is preferred currency nationwide, however, keep in mind that you can spend the other currencies easily, specially in the bigger cities. If you are traveling to China, you may spend, Yuan on northern and border town, Japanese Yen and Vietnamese dong are also accepted while exchanging them might be harder in smaller town. US Dollar is the most popular foreign currency using for both trades in larger scale and even for paying your traveling expenses. You can also use your credit card, VISA, MASTERCARD and others in Laos. The banks will easily accept to exchange your US$ banknotes with note that old moneys are changed with lower rate, so, bring newly printed US Dollar. If you want to take any goods out of Laos, again, American dollar is preferred, if you are crossing the borders to Laos, you an also pay your stamping fee for the Laos visa on arrival with American Dollar. As you see, the Lao KIP is accompanied with other major currencies so you will have more confidence to choose which one to spend when in Laos. In fact, we advice you to exchange your Dollars upon arrival and spend the local Lao KIP, however, you can always reply on your other banknotes than Lao KIP.
Best way to exchange money in Laos
Until now you are familiar that you can take your Thai Baht, American Dollar, Euros and other major currencies to spend when vacationing in Laos, however, exchanging your money to LAO KIP is strong advised since you can’t pay for the small bills such as a beer, admission fees to tourist places or your grab and go snack with a US$ 100 banknotes. This will make the seller feel ashamed as well and you will often get a cold smile. Exchanging money is relatively easy and you can do it on arrival at the airport through the licensed money changers, or let it be and change your money at your hotel, hostel and even smaller guest-houses, any local banks and or money changers you see everywhere. One tip to exchange currency in Laos is that even banks prefer larger money to exchange than a US$ 50 or US$ 20 or lower banknotes. In your hotel, you can change any amount of money but with the lower rate if you asking to exchange the lower banknote than a US$ 100.
Lao KIP is a small currency with a lower chance to be appeared and exchanged outside Laos, Travelers often ask where to change US Dollar to Laos Money the LAO KIP when not in Asia, the answer is you can not find anywhere to buy Laos Curency before departing to Laos, so brining Dollars is the wisest idea. The major banks in Laos are always accept and happy to exchange foreign currencies, make sure to bring your passport, you can always exchange US$, AUD, British Pound, Japanese Yen, Vietnamese Dong, Chinese Yuan and of course the popular Thai Baht into Laos Kip, the currency of Laos. In addition, outside the larger cities you are advised to bring only cash, generally Laos is a cash based destination where people and shops are always preferring to receive cash instead of credit card and foreign currencies, credit cards are not accepted in smaller town, so heads up and prepare if you are going that way.
Credit cards & ATMs in Laos
ATMs are easy to be found and they are all over Laos you can find them at the international border gates to smaller town and they are easy to be used as they display Laotian and English on the ATM menu. The expected maximum of cash you can withdraw from the ATM would be vary from US$ 85 to US$ 250 based on 700,000 to 2,000,000 Laos Currency at a time, the national banks are usually dispatch the higher amount of cash per time. In addition, per transaction you will be paying the withdraw fee pus any fees your own bank may charge per international transaction. Also, there are over 10,000 ATM machine all over Laos, this means you can rely on the money withdrawing, but again, Laos is a cash based country and you should keep in mind that cash is preferred.
In terms of accepting the credit cards in Laos, there are a wide variety of shops, hotels, restaurants and shopping centers that are happy to accept the credit cads issuing for VISA, MasterCard and American Express, however, you will usually find those shops only in major cities in Laos such as in Vientiane the capital of Laos and also in Luang Prabang and also in Pakse, remember credit cards are become useless while you travel to smaller town and cities. Anyway, make sure if your credit card is working in Laos, you can always call your bank before leaving to Laos, sometime and usually after the first transaction, your credit card will get blocked by your home country’s bank.
Also, Online hotel reservation can be made by credit card, but for this it is preferable to book in advance. Also keep in mind that when paying by card at hotels or travel services at the spot, you may e asking for a commission of between 3-5% depending on your credit card or bank. As for withdrawing money from ATMs in Laos is it widely possible, but only in large tourist cities. However, the ratio of ATM system it gets larger in terms of coverage year by year. In each withdrawal transaction, the commission of 1-5 dollars is maintained, in addition to the commission of your bank. If you need money urgently, and you cannot find an ATM, you can try to withdraw money with your credit card directly in the bank, but you will have to pay an additional commission of 2% to 5%.
Money and Cost in Laos
If you are preparing for trip to Laos, you are surely interested in knowing how much money would cost in order to plan your stay, what average price it can cost you to eat, sleep and move around the country. Having more or less clear ideas will save you more money than if you arrive without any type of information because by having your budget clear you will also have more or less clear what daily expenses you can have. Laos currency and generally cost of items in Laos are subjective, each traveler refines their budget based on how they want to travel, where they want to stay and where they want to eat, or how many days should they travel. So that you can get an idea of the budget to spend money in Laos, we leave you the following information.
Budget and money and cost in Laos in order to understand an approximate budget so as a tourist, one can prepare the right amount of money to spend in Laos. Food in Laos is generally very cheap. Eating in the typical local restaurants or street stall will be around 1.5 – 3 euros. Drinks are also very cheap and prices range from a simple bottle of water for 0.70 euros to a beer around 1.5 euros approximately. Accommodation in Laos are vary from budget dormitory stay to high-end luxury hotels. Booking in advance is advised specially if you are gong to be in Laos during the new year and special occasions, clock here to learn more about festivals in Laos.
Laos currency and money is preferred as you travel through the smaller areas such as villages, remote hamlets and other smaller town, so, keep in mind to bring enough Laos money, the LAO KIP to cover your travel. To spend Laos money for shopping, you can always find night markets from where you will definitely find a better prices compare to the gift shops, you can also bargain and get a better price as bargaining is a common thing in Laos as in rest of the region. Also, tipping in Laos is not expected, but appreciated. If you like their service, leave behind a bit of change.
SUMMARY: Laos money and currency is one of the lesser known in the world, bring dollar and or Euros and change them upon arrival or at the cities through the money changers and or banks. Laos KIP is preferred as you travel through the country. Money changers are available at everywhere in tourist-friendly destinations like Vientiane and Luang Prabang, Pakse and Vang Vieng. Plan your trip in advance and learn more about the country through the comprehensive guide to Travel To Laos
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