Presidential Order on Management of Foreign Exchange and Valuables
关于外汇及贵重物品管理的主席令
ລັດຖະບັນຍັດ ວ່າດ້ວຍ ການຄຸ້ມຄອງເງິນຕາຕ່າງປະເທດ ແລະ ວັດຖຸມີຄ່າ
Summary
This Presidential Decree establishes the regulatory framework for the management of foreign exchange and precious items in the Lao People's Democratic Republic, covering the use, purchase and sale of foreign exchange, exchange rates, the opening of foreign currency accounts, receipts and payments, loans and assistance, the inflow and outflow of foreign investment funds, the operation of precious items, and penalties for violations, with the aim of maintaining the stability of the kip exchange rate and monetary independence.
Articles
Article 1
Purpose. This Presidential Decree aims to prescribe the management regime and principles for foreign exchange and valuable items, ensuring their flexible operation, maintaining the stability of the Lao People's Democratic Republic Kip exchange rate against foreign currencies, promoting the circulation of domestic goods and currency, safeguarding monetary independence and autonomy, keeping the national currency stable and strong, expanding economic cooperation with foreign countries, thereby contributing to the country's economic and social development.
Article 2
Definitions (New). The terms in this Presidential Decree have the following meanings:
- "Currency" means the currency of the Lao People's Democratic Republic, i.e., Kip;
- "Foreign Currency" means banknotes, traveler's checks, and other commercial instruments having value as foreign currency, as well as precious items used internationally for international settlement;
- "Exchange Rate" means the ratio of the Kip price relative to foreign currency types;
- "Legal Entity" means an entity conducting business activities;
- "Commercial Instruments" means various types of bank checks, various types of drafts, bonds, bills of exchange, promissory notes, documents, or other payment instruments having foreign currency value that can be used for purchase, sale, or international settlement;
- "Foreign Currency Cash" means banknotes, traveler's checks, and other documents having cash value;
- "Precious Items" means gold that can be used as an international payment instrument;
- "Commercial Bank" means a business entity lawfully permitted to be established under the laws of the Lao People's Democratic Republic and conducting banking business within the territory of Laos;
- "Resident in the Lao PDR" means: (1) Lao or foreign natural persons or legal entities established in the Lao PDR, permitted and lawfully registered to conduct business activities under Lao law, and representative offices of such legal entities located abroad; (2) Lao state agencies and social organizations operating inside and outside the Lao PDR; (3) Lao citizens having a domicile in the Lao PDR; (4) Lao citizens traveling abroad for not more than one year; (5) Lao officials and staff permanently assigned to foreign embassies, consulates, and international organizations; (6) Lao citizens traveling abroad for study and medical treatment; (7) Foreigners or stateless persons having a domicile in the Lao PDR and residing permanently for livelihood; (8) Foreigners operating within the Lao PDR for more than one year and who are not officials or staff of foreign embassies, consulates, or international organizations.
- "Non-Resident in the Lao PDR" means: (1) Natural persons and legal entities residing abroad; (2) Foreign embassies, consulates, international organizations, and foreign officials, staff, advisors, foreign experts permanently assigned to the Lao PDR, and their family members; (3) Foreigners coming to the Lao PDR for not more than one year; (4) Foreigners coming to the Lao PDR for study, tourism, visits, and medical treatment; (5) Representative offices of foreign legal entities located in the Lao PDR; (6) Lao citizens traveling abroad for more than one year.
If there is difficulty in determining whether a natural person or legal entity falls into which of the above two categories, the matter shall be submitted to the Governor of the Bank of the Lao PDR for decision.
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