The Lao Kip, denoted by the ISO code LAK, is the official currency of Laos. One kip is subdivided into 100 At. A currency reform took place in 1979, with the exchange rate of 100 old kip being replaced by one new kip. One EUR is equal to 13,636 LAK and 1 USD is equal to 10,500 LAK. The country only uses banknotes. No coins are in circulation in Laos. In the late 1990's Laos's economy had experienced over 100% inflation and 500% depreciation.
Sovereign Ratings for Laos
Laos is not rated.
What does it look like?
Political Structure
Laos has a communistic government with three branches: executive, legislative, and judicial. The executive branch consists of a president, vice president, prime minister, first deputy prime minister, two deputy prime ministers, and a cabinet. The National Assembly elects the president and vice president for a five-year term. The president with approval of the National Assembly for a five-year term appoints the prime minister. The prime minister appoints all the deputy ministers. The cabinet also called the Council of Ministers is appointed by the president, however has to be approved by the National Assembly. The legislative branch is a unicameral National Assembly with 109 seats. All of the members serve a five-year term and are elected by popular vote. The judicial branch consists of a People's Supreme Court. The National Assembly on the recommendation of the National Assembly Standing Committee elects the president of the People's Supreme Court. The National Assembly Standing Committee appoints the vice president and the judges of the People's Supreme Court.
Prominent Figures
President: General Khamtai Siphandon, since February 26, 1998
Vice President: Lieutenant General Choummali Saignason, since March 27, 2001
Prime Minister: Boungnang Volachit, since March 27, 2001
Central Bank: The Bank of Lao PDR
Governor of the Bank: Chansy Phosikham
Unique Characteristics
Laos also has a massive hydroelectric potential and, despite a relative lack of development, electricity is a prime export. The other principal exports of Laos are timber and wood products, tin, textiles and garments, and coffee. Since most manufactured items have to be imported, there is a continuing foreign trade deficit. Leading trade partners are Thailand, Vietnam, and Japan.
Key Economic Factors
Agriculture, mostly consisting of rice farming, makes up the majority of the economy, employing an estimated 85% of the population and producing 51% of GDP. With very little domestic saving, Laos is forced to rely heavily on foreign assistance and concessional loans as investment sources for economic development. The Asian financial crisis, coupled with the Lao Government's own mismanagement of the economy, resulted in spiraling inflation and a steep depreciation of the kip, which lost 87% of its value from June 1997 to June 1999.
Have additions or corrections to this material? 
