Laos Currency: Everything You Need to Know Before You Travel

Laos is a beautiful country in Southeast Asia, known for its stunning natural scenery, rich culture, and friendly people. It is a popular destination for travelers who want to experience a different side of Asia, away from the crowds and chaos of some of its neighbors.

But before you pack your bags and book your flight to Laos, there is one thing you need to know: its currency. Knowing about the currency of a country is essential for any traveler, as it affects your budget, your spending, and your overall experience. Without proper knowledge of the currency, you might end up paying more than you should, getting ripped off, or missing out on some great deals.

That’s why in this article, I will tell you everything you need to know about Laos currency before you travel.

The Official Currency of Laos: The Lao Kip

The official currency of Laos is the Lao kip (LAK), which is also sometimes spelled as kip or kips. It is abbreviated as ₭ or ₭N (to distinguish it from other currencies that use the same symbol). It is divided into 100 atts, but these are no longer used due to inflation.

The Lao kip was introduced in 1952, replacing the French Indochinese piastre that was used during the colonial period. Since then, it has undergone several changes due to political and economic events. The current series of banknotes was issued in 2012, featuring images of temples, monuments, landscapes, animals, and historical figures.

The Lao kip comes in denominations of 500, 1,000, 2,000, 5,000, 10,000, 20,000, 50,000, and 100,000 kips.

The exchange rate of the Lao kip varies depending on the market conditions. As of October 2023, one US dollar is worth about 20,660 kips. You can check the latest exchange rates online or at any bank or money changer in Laos.

How to Use Other Currencies in Laos

Although the kip is the official currency of Laos, it is not the only currency that is used and accepted in the country. In fact, you may find that other currencies are more convenient and practical to use in some situations.

The most common and popular currencies that are used in Laos besides the kip are the US dollar (USD) and the Thai baht (THB). You can also use other currencies, such as euros (EUR), pounds (GBP), yuan (CNY), etc., but they may be less accepted or more difficult to exchange.

How to Spend Money Wisely in Laos

Laos is a relatively cheap country to travel in, but it can also be expensive if you are not careful. Therefore, you need to have a good sense of budgeting and bargaining, as well as tipping and donating, when you visit Laos.

Here are some tips on how to spend money wisely in Laos:

Budgeting and Bargaining:

Plan your trip ahead and set a daily budget that suits your needs and wants
Research the prices of the items or services that you are interested in before buying or booking them
Compare the prices of different vendors or providers before choosing one
Bargain politely but firmly with sellers or drivers who offer inflated prices or try to rip you off
Be flexible and willing to walk away if you cannot reach a fair deal
Be respectful and reasonable when bargaining and do not haggle over small amounts

Tipping and Donating:

Tipping and donating are not mandatory or expected in Laos. However, they are appreciated and welcomed by the locals who work hard to provide you with good service or assistance. Therefore, you may want to tip or donate some money in Laos as a way of showing your gratitude or generosity.

As a general guide, you can follow these suggestions:

Donate around 10,000₭ to 20,000₭ at temples or monasteries that offer free entry or meditation
Tip around 10% of the bill or round up the amount at restaurants or bars that offer good service or quality
Tip around 10% of the fare or round up the amount at taxis or tuk-tuks that offer good service or convenience
Tip or donate in kip or US dollars rather than other currencies that may be hard to exchange or use
Tip or donate only when you can afford it and do not feel pressured or obliged to do so

Conclusion

Money is an important aspect of traveling that can make or break your trip. Therefore, you need to know how to deal with money in Laos before you travel there. I hope this article has been helpful and informative for you. So, pack your bags, get your kip ready, and embark on your adventure through the Land of a Million Elephants. Laos awaits your exploration, and with the right currency know-how, your journey is bound to be both enriching and unforgettable.