BOL to take urgent action on differences in exchange rates
BOL’s Deputy Governor, Ms Vatthana Dalaloy, speaking on behalf of the central bank at the 13th Lao Business Forum held in Vientiane on Wednesday, told members of the private sector that BoL is fully aware of these problems and ensure that these will be taken into the national agenda and prepared for the National Assembly to approve.
Ms. Vatthana explained the value of the kip has weakened against foreign currencies due to a number of factors, including the limit on production background, the trade deficit, and the strategy for foreign currency management. Ms Vatthana noted that if these unresolved issues are not properly tackled, the value of the kip will continue to weaken in both the mid-term and the long-term.
She also called on the private sector to work along with the central bank to implement various revised laws related to the management of foreign currency. “BOL will work in collaboration with the private sector to address both current and future problems by improving the law on management of foreign currency and other relevant regulations,” she said.
During the session, private sector speakers complimented the government on its effort for provided effective COVID-19 containment and mitigation measures, and immediate measures to protect workers and firms from the worst effects of the pandemic including tax exemptions and deferrals, provision of low-interest loans, and unemployment benefits through social security programmes.
Since the 12th LBF, the private sector and government agencies have prioritized 40 specific issues in the areas of business entry, trade facilitation, access to financial services, enforcement of laws and regulations, and the promotion of sustainable tourism and agribusiness.
The 13th LBF forum agreed on a concrete plan of action to continue dialogue and seek appropriate solutions to the remaining 32 issues over the next 12 months.
At the same meeting, the government made a commitment to work with the private sector to support policies and mobilize facilitations to improve the business environment in order to achieve the goals of socio-economic development.
Source: J&C Group