Make Payments in LAK - Lao Kip
Pay in Lao Kip (LAK)
Mondial Change allows you to make international payments in LAK (Lao Kip) with ease. Manage your Lao Kip beneficiaries, track your transactions in real-time, and enjoy a secure online platform. We do not apply any exchange commission on your LAK operations (a spread is applied on the exchange rate, which slightly degrades the interbank rate on the currency pair traded). Your client rate is always communicated transparently before the validation of each of your transactions.
Receive Payments in Lao Kip (LAK)
It is currently not possible to receive payments in LAK.
Mondial Change Answers All Your Questions About Payments in Lao Kip (LAK)
What is the timeframe for a payment in LAK to be credited to the beneficiary's account?
It generally takes a minimum of 2 business days for a Lao Kip transfer to be credited to the beneficiary's account. However, these timeframes are not contractual, and our partners responsible for the execution and routing of payments cannot be held liable if LAK payments are credited beyond 2 business days to the beneficiary's account. External events such as processing delays by intermediary banks, public holidays, execution time, or compliance checks can have a significant impact on payment receipt times.
What are the fees for a payment in Lao Kip (LAK)?
The fees applied to transfers in Lao Kip (LAK) generally range from 0 to 10 euros depending on the agreement with Mondial Change's trading room. The rate mainly depends on your annual LAK exchange volume and the number of Lao Kip payments made during the year.
Are there minimum or maximum amounts for payments in Lao Kip (LAK)?
Mondial Change and its partners verify that your Lao Kip flows are consistent with the data declared during account opening and consistent with your activity volume to ensure compliance and security. If there are restrictions on transaction volumes, they will be communicated to you well in advance of the validation of your operations.
What are the specific rules for executing a payment in Lao Kip (LAK)?
For payments in LAK via the SWIFT network, the following information must be provided at a minimum:
• Full name of the beneficiary
• Full address of the beneficiary
• Local account number
• SWIFT code of the beneficiary's bank
• Reason for payment
Is it possible to modify a payment in Lao Kip (LAK) after it has been executed?
Yes, it is possible with some of our partners to modify a payment in Lao Kip (LAK) even after it has been sent in SWIFT. If you have, for example, made an error in the beneficiary's name or account number, the correction is made through a SWIFT amendment. If the payment has not been executed via the SWIFT network, then it is not possible to make such amendments, and you must wait for the payment to be returned if applicable.
What are the public holidays when payments in Lao Kip (LAK) cannot be executed?
January 1: New Year's Day (International New Year’s Day)
Variable date (January/February): Chinese New Year (observed by some communities)
March 8: International Women's Rights Day
Variable date (April): Lao New Year – Pi Mai (1st day)
Variable date: Lao New Year – Pi Mai (2nd day)
Variable date: Lao New Year – Pi Mai (3rd day)
May 1: Labour Day
Variable date (May): Visakha Bucha (birth, enlightenment, and death of Buddha)
Variable date: Boun Khao Phansa (beginning of Buddhist Lent)
Variable date: Boun Ok Phansa (end of Buddhist Lent)
December 2: National Day of the Lao People's Democratic Republic
History of the Lao Kip
The Lao Kip (LAK) has been the official currency of the Lao People's Democratic Republic since 1955. It replaced the Indochinese piastre following the country's independence. The LAK derives its name from an ancient weight unit used in the region. Over the years, the Kip has experienced several episodes of inflation, notably during the 1990s, leading to a monetary reform. Today, the Kip remains a currency with limited international convertibility but is widely used in domestic exchanges. It is subdivided into 100 att, although these are practically no longer used in regular transactions.
Monetary Policy of the Lao Kip
The Bank of the Lao People's Democratic Republic is the authority responsible for the country's monetary policy. Its main objective is to maintain the stability of the Kip and control inflation. The LAK operates under a managed exchange rate regime, with regular interventions by the central bank to adjust the rate against major currencies. In addition to exchange rate regulation, the central bank uses instruments such as the policy rate, reserve requirements, and refinancing operations. However, the country faces challenges such as the dollarization of the economy and import price volatility.
Characteristics of the Lao Kip
The Lao Kip (LAK) is a currency with low liquidity on international markets, limiting its use outside the country. However, it is essential in the domestic economy, being used in all internal transactions. Kip banknotes are available in various denominations, featuring cultural and historical motifs unique to Laos. The population also uses the Thai Baht or the US Dollar in some border areas. Despite its low convertibility, the LAK remains a strong symbol of national monetary sovereignty and is the subject of ongoing efforts to strengthen its stability and credibility within the country.