Laos is a landlocked Southeast Asian country recognized for its rich culture, natural beauty, and welcoming people. If you are considering a trip to Laos, you may be concerned about the currency situation and how to manage your money while on the road. We will cover all you need to know about the Laos money, exchange rates, ATMs, and budgeting in this article.
What is the Laos currency?
The official currency of Laos is the Lao kip (LAK). The kip comes in banknotes of 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 LAK. There are no coins in circulation.
The kip is not a convertible currency, which means that you cannot exchange it outside of Laos. Therefore, you should only exchange as much as you need for your trip and try to spend all your kip before leaving the country.
What are the exchange rates?
The exchange rate of the kip fluctuates depending on the market conditions and the monetary policy of the Bank of Laos (BOL), the central bank of the country. As of October 2023, one US dollar (USD) is worth about 20,620 LAK, one euro (EUR) is worth about 21,815 LAK, and one Thai baht (THB) is worth about 342 LAK.
However, these are the BOL’s official exchange rates. Banks, hotels, and money changers may provide various rates. You may check the current conversion rates online or on your phone by using a currency converter app.
How to exchange money in Laos?
There are several ways to exchange money in Laos. The most common ones are:
- Banks: You can exchange foreign currencies at most banks in Laos. They usually offer better rates than other places and charge a small commission fee. However, banks may have limited opening hours and may not accept all types of currencies.
- Hotels: You can also exchange money at your hotel or guesthouse. This is convenient but usually more expensive than banks. Hotels may also have a minimum or maximum amount for exchanging money.
- Money changers: You can find money changers in major cities and tourist areas. They are usually located near markets, shops, or restaurants. They offer fast and easy service, but may charge higher fees or give lower rates than banks. You should always count your money carefully and ask for a receipt before leaving.
- ATMs: You can withdraw kip from ATMs using your debit or credit card. This is convenient and safe, but may incur fees from your bank or the ATM provider. You should also check the withdrawal limit and the exchange rate before using an ATM.
- Find people: You can also find people who are willing to exchange money with you in Laos. These are usually travelers who have leftover kip and want to change them to foreign currencies. Or locals that are paid in local currency and looking for foreign currencies at a good reate. You can find them on online forums, such as Lonely Planet, TripAdvisor, or Facebook. You can post your request or reply to others who are looking for the same. However, you need to be careful and check the authenticity and reputation of the person you are dealing with. You should also agree on the exchange rate and the meeting place beforehand. This option may be risky but also rewarding if you find a good deal.
What are the best currencies to bring to Laos?
US dollars, euros, and Thai bahts are the finest currencies to carry to Laos. In Laos, they are widely accepted and easily exchanged. Other major currencies, such as Australian dollars (AUD), British pounds (GBP), Canadian dollars (CAD), Chinese yuan (CNY), Japanese yen (JPY), or Singapore dollars (SGD), can also be brought, but they may be more difficult to exchange or have lower rates.
You should bring a mix of cash and credit cards with you to Laos. Cash comes be handy for modest purchases, tips, and emergencies. Cards are useful for making larger purchases, making online reservations, and withdrawing cash. You should also maintain some spare cash in a secure location in case you misplace your card or run out of funds.
How to use Loca Pay in Laos?
Loca Pay is a new digital payment service launched by Loca, the leading online taxi service in Laos. Loca Pay allows you to link your credit card to the Loca app and pay by scanning the Lao QR code at various places. Loca Pay supports Visa, Mastercard, and UnionPay (coming later next year).
To use Loca Pay, you must first download the Loca app and create an account. Then you must connect your credit card to the app and enter your KYC (know your customer) information. The process will be completed instantly, and you can begin paying by scanning the Lao QR code anywhere in Laos.
Loca Pay is a quick and secure payment option for travelers who prefer not to carry cash or enter sensitive information.Loca Pay is also officially approved by the Bank of Laos’ Department of Payment System, so you can be confident in the security and privacy of your payments throughout Laos.
How to budget for your trip to Laos?
Laos is one of the most affordable destinations in Southeast Asia. You can travel comfortably on a budget of around $30-$50 per day per person. This includes accommodation, food, transportation, and activities. Of course, your budget may vary depending on your travel style, preferences, and season.
Here are some average costs of traveling in Laos:
- Accommodation: You can find a range of accommodation options in Laos, from budget guesthouses and hostels to mid-range hotels and resorts. A dorm bed in a hostel costs around $5-$10 per night, while a private room in a guesthouse or hotel costs around $15-$30 per night. You can also find luxury hotels and resorts for around $50-$100 per night or more.
- Food: You can enjoy delicious and cheap food in Laos, especially local dishes such as sticky rice, laap (minced meat salad), tam mak hoong (papaya salad), or khao piak sen (noodle soup). A street food meal costs around $1-$3, while a restaurant meal costs around $5-$10. You can also find international cuisines such as Thai, Chinese, Indian, or Western for around $10-$20 per meal.
- Transportation: You can get around Laos by various modes of transportation, such as buses, minivans, tuk-tuks, taxis, or boats. A local bus ride costs around $0.50-$1, while a minivan ride costs around $5-$10. A tuk-tuk ride costs around $1-$5, depending on the distance and your bargaining skills. A taxi ride costs around $5-$15, depending on the destination and the meter. A boat ride costs around $10-$20, depending on the route and the type of boat. You can also rent a motorbike or a bicycle for around $5-$10 per day.
- Activities: You can find plenty of things to do and see in Laos, from cultural attractions and historical sites to natural wonders and outdoor adventures. Some of the most popular activities include visiting temples and museums, exploring caves and waterfalls, trekking and hiking, kayaking and rafting, or taking cooking classes and massages. The entrance fees for most attractions range from $1-$5, while the cost of tours and activities range from $10-$50.
What are some tips for saving money in Laos?
Here are some tips for saving money in Laos:
- Bargain: You can bargain for almost everything in Laos, especially at markets, shops, or tuk-tuks. You can usually get a 10%-30% discount if you haggle politely and firmly. However, you should also be respectful and fair to the sellers and drivers.
- Eat local: You can save a lot of money by eating local food in Laos. Local food is not only cheap but also delicious and filling. You can find local food at street stalls, markets, or small restaurants. You can also try some snacks or fruits from vendors or shops.
- Drink water: You can save money by drinking water instead of soft drinks or alcohol in Laos. Water is essential for staying hydrated and healthy in the tropical climate. You can buy bottled water for around $0.50-$1 or refill your own bottle at water stations for free or a small fee.
- Travel off-season: You can save money by traveling to Laos during the low season, which is from May to October. This is the rainy season in Laos, which means fewer tourists, lower prices, and more availability. However, you should also be prepared for some inconveniences such as wet weather, muddy roads, or closed attractions.
- Use Loca Pay: You can save money by using Loca Pay to pay with your credit card in Laos. Loca Pay offers competitive exchange rates and low fees compared to other payment methods. You can also avoid carrying cash or using ATMs that may charge extra fees or give unfavorable rates.
Conclusion
Laos is an amazing country to visit because of its culture, nature, and people. You should, however, be aware of the current currency situation and how to manage your money when abroad. By following this guidance, you can have a stress-free and pleasurable trip to Laos without spending a fortune. Travel safely!