The kip is the official currency of the Lao PDR. Notes are in denominations of 1,000. 500. 100, 50. 20, 10, 5 and 1. The smaller denominations are being withdrawn from circulation. Coins (At) have negligible purchasing power and are not in common use. The central bank, The Bank of Lao PDR, is responsible for note issue.

Travellers cheques may be cashed at commercial banks and at licensed foreign exchange bureau. The exchange of foreign currency must be made at a bank of licensed foreign exchange bureau.

Visa cards are accepted at Lao Aviation and in certain shops, restaurants and hotels. The Banque pour le Commerce Exterieur Lao (BCEL) is the agent for Visa in Vientiane. Visa cash withdrawal service is not, however, available yet. The Thai Farmers Bank card is accepted where their logo is displayed.

There are a number of commercial banks in Vientiane. two regularly handle international financial transactions. The banks will open current (checking) accounts in US dollars or baht, as well as in convertible kip.

Setthathirath Bank has recently added to its network the old state bank branches in Paksane. Bolikhamsay Province and Phonehong, Vientiane Province.

The banking system in the provinces has changed in recent years. All branches of the old State Bank of Lao PDR are now autonomous commercial banks.

The Phak Tai Bank with its Head Office in Pakse Setthathirat Bank has recently added to its network the old state bank branches in Paksane, Bolikhamsay Province, and Phonehong, Vientiane Province. It also has full service branches in Saravane, Xekong and Attapeu. and smaller offices in some other towns and villages in the four southern provinces.

The Lao May Bank has its Head Office in Savannakhet and a full-service branch in Thakhek. Khammouane Province.

The Lane Xang Bank operates in six northern provinces: Luang Prabang, Luang Namtha, Sayaboury. Oudomsay. Bokeo and Phong Sali.

The newest bank is the Aloun May Bank which operates in Xieng Khouang and Houaphan provinces.

Take sufficient kip with you if you travel to the provinces. You may not be able to cash a cheque drawn on a Vientiane bank.

You may take out or bring into the Lao PDR up to 5,000 kip. There is no restriction on the import of foreign exchange although, in principle, such imports should be declared.

There are foreign exchange restrictions in place in Thailand, and visitors entering Lao PDR through Thailand are advised to acquaint themselves with these regulations. Customs officers do make checks from time to time at the Bangkok airport.