Members of the National Assembly have asked the government to take tougher measures against rising exchange rates and better promote public use of national currency (kip).
At the ongoing 5th Ordinary Session of the National Assembly’s 9th legislature on Tuesday, Mr. Sathabandith Insisiengmai, member of the National Assembly for Huaphan provincial constituency, called on the government to attach attention to addressing inflation and asked the Bank of the Lao PDR to make greater efforts to promote the use of the national currency (kip).
“According to the survey conducted by a trade institute in 2023, 70% of small and medium enterprises agreed to increase the monthly minimum wage to 1.8 – 2 million kip so as to ensure workers have enough money to sustain their cost of living,” he added.
A couple months ago, the government issued a notice ordering the nationwide closure of currency exchange shops.
Mr Vorasith Sivongda, NA member for Savannakhet provincial constituency, proposed the government to better promote domestic production to reduce imports.
The year-on-year inflation rate in Laos has decreased slightly from 41.26 % in February, to 40.97 % in March, 39.89 % in April and 38.86 % in May, according to the Lao Statistics Bureau.
As of June 2023, the cost of food and non-alcoholic drinks has risen by 42.73 % year-on-year, as the cost of the hotel and restaurant sector has increased by 28.78 % and medical care and medicines has jumped by 25.09 %.
The cost of clothing and footwear has increased by 24.60 % and that of household utensils has been up by 23.94 %.
The depreciation of Kip against hard currencies is one of main factors that drive inflation in the country, posing a challenge for the Lao government to curb the rising cost of living.
Source: Lao News Agency
