VIENTIANE, July 14 (Xinhua) -- The Bank of the Lao PDR (BOL), the central bank, has come up with a new administrative rule to administer currency exchange businesses amid the appreciation of international currencies against the Lao kip.
The Bank of the Lao PDR made a strong commitment at the recent session of the National Assembly that it would try its best to maintain the value of the Lao kip against major international currencies within a 5 percent range, local daily Vientiane Times reported on Tuesday.
According to the new decision on currency exchanges, which is accessible on the central bank's official website, individuals and legal entities, who want to operate a currency exchange business must obtain a license from the central bank.
Only legal entities which conduct business in connection with hotels and tourism and meet the requirements are eligible to obtain the currency exchange business licenses from the central bank under this new rule.
Once approved, the businesses must strictly comply with rules and orders imposed by the central bank or face serious penalties, including fines and cancellation of their business operating license.
According to the rules, currency exchanges must not offer services outside of their declared business venues.
Money exchange service providers are also banned from engaging in direct currency exchanging with commercial banks. Another rule the businesses must follow is setting their exchange rates in line with the regulations and the central bank's rate.
Under the bank's Decision on Currency Exchange Business, the Bank of the Lao PDR has made the business licensing and approval process transparent as part of measures to encourage money exchange service providers to obtain an operating license. Enditem