Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 3 - Jul/Aug/Sep 2021

Bank of Lao PDR Issues Instruction on Converting Foreign Exchange Stores into Commercial Bank Representatives

On 2 August 2021, the Monetary Policy Department, Bank of Lao PDR ("BOL") issued Instruction No. 878/MPD on the Transferring Foreign Exchange Stores into a Representative of a Commercial Bank ("Instruction"). The Instruction supplements/implements Notice No.758/MPD dated 12 July 2021 on the Converting Foreign Exchange Stores Representative of a Commercial Bank.  To comply with the laws and relevant regulations, BOL has issued various guidelines which cover, among other things, the following: 

  1. Application to be a representative of a commercial bank. A foreign exchange store ("FX Store") shall coordinate with a commercial bank of its choice and apply to be a representative of such commercial bank ("Agent"). An FX Store can apply as an Agent with several commercial banks, but it can only sign a currency exchange agent agreement with one bank.

  2. Determining exchange rates and trading currencies. The exchange rate of the FX Stores shall be in accordance with Decision No.801/BOL dated 5 October 2015 on "Determining the reference exchange rate between the LAK and USD and Determining the exchange rate of commercial banks and FX Stores" and other legislations defined by BOL periodically.

  3. Operation of an FX Store after becoming an Agent. An FX Store has certain obligations after becoming an agent, including (i) putting up a signage bearing clearly the name of the commercial bank it represents; and (ii) complying with continuing obligations pursuant to relevant regulations.

For more information, click here to read our Legal Update. 

Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.


Rajah & Tann (Laos) Co., Ltd
Anou Village,
Samsenthai Road, Unit 17,
Chanthabouly District,
Vientiane Capital, Lao PDR.


Lee Hock Chye
Managing Partner
D +603 2273 1919
F +603 2273 8310

Khanti Syackhaphom
Legal Advisor
D +856 21 454 239
F +856 21 285 261

Desmond Wee
D +65 62320474

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update.