While the Lao kip (LAK) is Laos’ official currency, it’s not widely traded outside the country. Visitors to Laos often use a mix of kip, U.S. dollars (USD), and Thai baht for cash transactions. Whether you’re planning a visit or sending money to loved ones, understanding how Laos’ currency works can make your experience much smoother.
Here’s everything you need to know about the Lao kip, its history, and tips for using money in Laos.
The History of Laos’ Currency
Laos gained independence from France in 1953, and shortly after, the Lao kip replaced the Indochinese piastre as the country’s official currency.
Key Developments:
- 1945: The Free Lao government introduced the Free Lao kip.
- 1952: The Royal kip became the official currency.
- 1975: After becoming the Lao People’s Democratic Republic (Lao PDR), the country transitioned to the Lao PDR kip issued by the Bank of the Lao PDR.
Today, the kip is recognised by its currency code LAK and symbols ₭ or ₭N.
Lao Kip Denominations and Exchange Rates
Banknotes
The Lao kip is available in denominations of:
- ₭1,000, ₭2,000, ₭5,000, ₭10,000, ₭20,000, ₭50,000, ₭100,000
Coins are no longer in circulation due to inflation.
Exchange Rate
The Lao kip is a relatively weak currency compared to the British pound (GBP) and U.S. dollar. For instance, as of June 2022:
- 1 USD ≈ ₭15,008
- 1 GBP ≈ ₭19,000
The largest kip note, ₭100,000, is worth about £5.20.
How to Exchange Lao Kip
Since the kip is not traded internationally, you’ll need to exchange any remaining kip before leaving Laos. When sending money to Laos, funds are often delivered in USD because of the kip’s limited availability.
Eight Interesting Facts About Laos
- Landlocked with a River Lifeline: Laos is surrounded by five countries but relies on the Mekong River for transportation.
- Small Population, Diverse Ethnic Groups: Laos has 7 million residents spread across 240 ethnic groups.
- Buddhist Influence: Two-thirds of the population practises Theravada Buddhism.
- Socialist Republic: Laos is a one-party state with the Lao People’s Armed Forces maintaining national security.
- Popular Tourist Destination: Laos welcomes nearly 5 million tourists annually, with Luang Prabang as a UNESCO World Heritage Site.
- Unique Language: Lao is the official language, with French, English, and Hmong also widely spoken.
- Rare Dolphin Species: The Irrawaddy dolphin, found in the Mekong River, is one of the world’s rarest dolphins.
- Biggest Export: Electricity, including hydroelectric power, is Laos’ primary export, generating over $1.93 billion in 2020.
Using Currency in Laos
- Cash Is King: While cards are accepted in tourist centres, rural areas and small businesses often only take cash.
- Use Small Denominations: USD and Thai baht are widely accepted, but carry small bills for everyday purchases.
- ATM Access: ATMs are common in cities like Vientiane and Luang Prabang, but fees may apply for international cards.
- Tipping Isn’t Expected: While not obligatory, leaving a small tip in kip is appreciated in restaurants or for excellent service.
Sending Money to Laos
Since kip isn’t available outside Laos, sending money in USD is a common solution. Services like Remitly make this process seamless. With Remitly, your recipient can receive funds in USD, which they can exchange locally if needed.
Track your transfers easily and enjoy competitive rates with transparent fees.
