The Bank of the Lao PDR briefed the National Assembly during its Ninth Ordinary Session on implementation of the 2025 monetary plan, responding to members’ questions on monetary and foreign exchange management and on credit provision, including for small and medium-sized enterprises. The central bank reported that inflation had continued to decline, averaging 11.7% over the first five months of 2025, and expected it to ease to a single-digit rate by end-2025 in line with the National Assembly-approved target. It also pointed to improved exchange rate stability and reported that, by end-May 2025, 68.74% of total export value had been channelled and managed through the banking system, with an expectation of reaching 70% by end-June 2025. The briefing also covered implementation of arrangements for managing foreign-currency deposit accounts held in the Lao PDR. Looking ahead, the Bank of the Lao PDR set out priorities to keep inflation under control, maintain exchange rate stability and manage money supply in line with economic conditions, while increasing foreign-exchange transactions through the Lao Foreign Exchange Market and tightening foreign-currency management to bring more foreign currency into the formal system and ensure adequate supply. It also signalled further work to streamline credit approval processes to reduce delays and improve access to funding for businesses.

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