Laos Currency & Credit Cards: Essential Money Tips

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Laos Currency: Travel guide to money& credit cards in Laos

The official currency in Laos is the Kip (LAK), and its symbol is ₭ or ₭N. The banknotes in circulation include 500₭, 1,000₭, 2,000₭, 5,000₭, 10,000₭, 20,000₭, 50,000₭, and 100,000₭. Laos does not currently use coins in circulation.

In Dec 2024, the currency exchange rate of Lao Kip to other major currencies: 1 USD ~ 21.800 LAK, 1 EUR ~ 23.000 LAK, and 1 THB ~ 634 LAK.

The best currencies to take for exchanging into Lao Kip are US dollars, Thai baht, Euros, UK pounds, and Canadian and Australian dollars. Vietnamese Dong (VND) is also accepted to exchange into Lao Kip in Luang Prabang and Vientiane.

Travelers can exchange USD or Thai baht almost anywhere in Laos, including markets, hotels, and smaller stores in cities other than Vientiane or Luang Prabang. Other international currencies are only exchangeable at banks or some licensed money changers in major towns.

A brief history behind the Laotian Kip, currency of Laos

The Lao Kip first appeared in circulation back in 1945. At that time, it was called the “Kip of Free Laos,” but it was only used for two years before the French took control of the country. During the French occupation, the French Indochina Piastra replaced the Kip as the official currency of Laos from 1946 to 1953, when the monarchy was reinstated. After gaining independence, the monarchy reintroduced the Kip, now called the “Royal Kip,” as the national currency at a rate of 1 Kip to 1 Piastre.

In the 1970s, as the nationalist communist group Pathet Lao expanded its control, they gradually introduced a new currency, the “Kip for the Liberation of Pathet Lao.” This currency replaced the old Kip at a rate of 20 “real” Kip for 1 Kip of Pathet Lao liberation, marking the first re-denomination of the national currency.

When the Pathet Lao came to power and established the Lao People’s Democratic Republic in 1979, the new government renamed the national currency to the “New Lao Kip,” with a rate of 100 old Kip for 1 New Kip. Over time, Laos went through several redenominations, each introducing new coins called Kip.

Since 1991, chronic inflation has steadily devalued the Lao Kip, causing the coins issued by the central bank to lose all their value. As a result, Laos remains one of the few countries without coins in circulation, and all transactions are now conducted using banknotes.

In 2010, Laos introduced a 100,000 kip banknote, the third-highest denomination banknote in the world. The Central Bank issued this note to mark the 450th anniversary of Vientiane’s founding and the 35th anniversary of the Lao People’s Democratic Republic.

Best currency to use in Laos other than Lao Kip

It’s usually a bit difficult to exchange USD or other major currencies into Kap Kip outside Laos, the best advice is to keep them and exchange them upon arrival.

Additionally, USD and Thai Baht are widely accepted in Laos. In upscale restaurants or hotels, bills often offer three currency options: Lao Kip, Thai Baht, and US dollars, for your convenience.

If you plan to visit remote areas or the countryside in northern Laos, exchange enough money into Lao Kip to cover your trip. You won’t find currency exchange services outside the larger cities, and Kip is likely the only currency accepted.

It’s also a good idea to carry a reasonable amount of smaller Lao bills (1,000 to 20,000 Kip) when shopping in Laos to avoid issues, as local traders—especially in rural areas—often can’t provide enough change.

ATM, Credit Cards & Changing Money in Laos

Credit cards are usually only accepted at +4 star hotels and a select group of shops in Vientiane and Luang Prabang. Since credit card use is limited outside major towns, make sure to carry enough cash if you’re traveling to remote parts of the country.

ATMs are also available in Luang Prabang, Vientiane, Pakse, Vang Vieng, Odoumxay & Savannakhet and you can use your visa, master cards to withdraw money in currency of Laos, the Lao Kip.

All ATMs in Laos charge a withdrawal fee. You can avoid this fee by using a FinTech solution like Revolut, Curve, or Monese. The ATM fee is typically 30,000 LAK, regardless of the withdrawal amount, except at JDB Bank, which charges 3% with a minimum fee of 40,000 LAK. BCEL used to be the best bank for withdrawing money in Laos.

Additionally, When you use an ATM in Laos, keep in mind that withdrawal Limits is usually between 1,000,000 and 2,000,000 LAK (around USD 100 to USD 200, depending on the current exchange rate) per transaction. You can usually make multiple transactions if you need more cash. Lao ATMs dispense only Laos currency (LAK) and the daily limit is only up to 10.000.000 Kip (USD 460). exchange rate of December 2024.

Explore Laos through a private tour that covers the countries most iconic attractions and locations. check out Laos Tours & holidays

Money and Cost in Laos

If you’re planning a trip to Laos, you’ll want to know the costs for things like food, accommodation, and transportation to help plan your budget. Having a clear idea of your expenses will save you money compared to arriving without any information. Your budget will vary depending on how you plan to travel, where you stay, where you eat, and how long you’ll be in the country. To help you estimate your costs, here’s a breakdown of typical expenses in Laos.

Food is generally very affordable. Meals at local restaurants or street stalls typically cost between 1.5 – 3 euros. Drinks are also cheap, with a bottle of water around 0.70 euros and beer costing about 1.5 euros. Accommodation ranges from budget dorms to luxury hotels. It’s a good idea to book in advance, especially during peak times like the New Year and festivals.

Bargaining in Laos

If you see a price tag, the price is fixed, and no bargaining is needed. You’re not expected to haggle in grocery stores or restaurants either. Bargaining typically happens in local night markets, where you might negotiate a slightly lower price, though not as much as in other Southeast Asian countries.

Remember to “save face” when bargaining in Asia—keep it friendly and good-natured. Both locals and tourists engage in bargaining, so approach it with a smile. The goal is not to make the merchant lose money but to agree on a price that works for both of you.

To prepare, learn some basic local phrases like “tao die” (how much), “took” (cheap), and “peng” (expensive) to help you negotiate. Discounts can range from 10% to 50% or more. Once the merchant accepts your offer, the deal is done. Check out Language of Laos

FAQ: Laos Money in 2025

How much does Laos charge for ATM withdrawal?

Withdraw cash at Public Bank of Laos ATMs with no service fee. Withdraw cash at other banks in Laos ATMs and incur a service fee of 1% of the amount withdrawn or LAK40,000 per transaction, whichever is higher.

What is the best way to pay for things in Laos?

Laos relies mostly on cash. You can use credit cards in a few places, but they often involve fees, and you need to watch the exchange rate since the Kip is not a very stable currency.

Can you use ATM in Laos?

First, you’ll find plenty of ATMs in major cities like Vientiane, Luang Prabang, and Pakse. These ATMs usually accept foreign cards, mainly Visa and Mastercard, so check with your bank before traveling to ensure your card will work abroad.

Can I use a Wise card in Laos?

The Wise card will work for your trip to Laos. Use it in Laos to get low-cost currency conversion and cash withdrawals, helping you stay within budget. However, the Wise card is not yet available for residents of Laos, so if you plan to relocate, you may need to consider other options.

Is US$100 dollars a lot in Laos?

In Laos, US$100 can stretch far due to the low cost of living. For example:

Foods: Local meals cost $2-$5, while upscale ones range from $10-$20.

Accommodation: Budget stays are $10-$25 per night; mid-range hotels are $30-$60.

Transportation: Tuk-tuks and motorbike rentals cost just a few dollars per day.

Overall, $100 can cover 3-4 days of travel on a budget, though luxury stays or tours will require more.