What is Laotian Kip (LAK)?
Laotian Kip (LAK)
The Laotian Kip (LAK) is subdivided into 100 att, although att coins are no longer in circulation. The currency symbol for the kip is ₭, and it is issued by the Bank of the Lao P.D.R. The kip was introduced in 1952, replacing the Lao Tangkha at a rate of 1 kip for 100 tangkha.
Initially, the kip was pegged to the French franc, but over the years, it has experienced significant fluctuations, particularly due to inflation and economic changes in the region. Banknotes are available in various denominations, including 1, 5, 10, 20, 50, 100, 500, 1,000, 5,000, 10,000, 20,000, 50,000, and even 100,000 kip notes, with the higher denominations becoming increasingly common as inflation has risen.
While the kip is the official currency, the US dollar and Thai baht are also widely accepted in many areas, particularly in urban centers and tourist destinations. This dual currency system can be seen in everyday transactions, where prices may be quoted in both kip and foreign currencies, adding a layer of complexity for visitors.
The Laotian Kip is not a freely convertible currency, meaning that it cannot be easily exchanged for other currencies outside of Laos. This limitation can create challenges for travelers and businesses looking to conduct international transactions. As such, those traveling to Laos are often advised to carry cash and exchange their money upon arrival.
In recent years, the Lao government has made efforts to stabilize the kip and improve its value against other currencies. They have implemented various monetary policies aimed at controlling inflation and encouraging foreign investment. However, the economy remains vulnerable to external shocks, which can impact the kip's value.
Overall, the Laotian Kip plays a vital role in the day-to-day lives of the people of Laos, reflecting the country's economic environment and its integration into the global financial system. Understanding the kip is essential for anyone looking to engage with the culture and economy of Laos.