As part of our Laos Travel Guide to make traveling to Laos as smooth as possible, its important to know everything related to the country’s money they use, as well as how to get and convert it. The national currency of the Lao People’s Democratic Republic (Lao PDR) is the Laotian Kip (LAK), represented by the symbol ₭. Various banknotes with different denominations are in circulation: 500 LAK, 1.000 LAK, 5.000 LAK, 10.000 LAK, 20.000 LAK, 50.000 LAK, 100.000 LAK. You will notice quickly that becoming a millionaire in Laos is easy 😉
The LAK is a non-tradable, closed currency, meaning that international banks and exchange offices typically do not buy or sell it outside of Laos. Unlike freely convertible currencies such as USD, EUR, or THB, the Lao Kip cannot be easily exchanged abroad.
When leaving Laos, it’s best to convert any remaining LAK into USD or THB before departure, as airport exchange rates may be unfavorable, or LAK may not be accepted at all. In Thailand, some border towns and exchange offices may accept LAK, but often at poor exchange rates. To get the best value, exchange your remaining Kip at a major bank or money exchange before you leave Laos.
The Lao Kip (LAK) has undergone several changes since its first introduction.
Royal Kip (1952-1976): In 1952, the Kingdom of Laos introduced a new Kip, replacing the piastre at par. The currency remained in circulation until the end of the Laotian Civil War.
Pathet Lao Kip (1968-1976): The communist Pathet Lao issued their own version of the Kip in areas they controlled. This currency coexisted with the Royal Kip until the unification of Laos.
Modern Lao Kip (Since 1979): After the Lao People’s Democratic Republic (Lao PDR) was established in 1975, a new national currency was introduced in 1979. The old Kip was exchanged at a rate of 100 to 1 for the new Kip.
Kip Today: The economy relies heavily on foreign currencies like the Thai Baht (THB) and US Dollar (USD) for larger transactions. Despite fluctuations in value, the Kip remains a symbol of Laos’ sovereignty and economic development.
In the last few years, cashless payments via QR codes have become very popular in Laos. Nowadays, it is even possible to pay by QR at almost any shop and even at local markets. QR payment options are also widely accepted in hotels and restaurants across the country.
To use the “Lao QR” system, it is necessary to have a Lao bank account, which most tourists do not have. However, Lao QR codes can now also be scanned by tourists using two different apps:
For topping up your EzyKip or LocaPay Wallet, I would recommend WISE (former Transferwise) avoid high foreign currency exchange fees. Wise always gives you the realtime mid-market exchange rate and also works fine in Laos.
I would say in many areas, especially rural places cash is still king in Laos. So if you prefer the good old cash, it is no problem to get cash in Laos. But there are some things to be considered. Either you bring foreign currency into Laos and exchange it later or you use your credit/debit card to withdraw money from an ATM. Both are convenient ways to get LAK once you arrived in Laos.
Usually, it is quite easy and straightforward to use an ATM in Laos. However, to be safe, you should definitely carry more than just one credit or debit card, as some ATMs may not accept certain cards. Therefore, it is essential to have one or two backup cards.
The biggest bank in Laos is BCEL (Banque pour le Commerce Extérieur Lao Public). BCEL ATMs are widely available across the country. The withdrawal limit per transaction is currently 2,000,000 LAK. Always withdraw the maximum amount because there is a small fee of 30,000 LAK per withdrawal (approximately $1.40 as of mid-March 2025). This equals exactly 1.5%, making ATM withdrawals slightly cheaper than topping up one of the previously mentioned mobile payment apps.
Still, keep in mind that you may need to make multiple withdrawals while in Laos, as 2,000,000 LAK is roughly $93 at the current exchange rate. However, considering the low costs of travel, accommodation, and food in Laos, this amount can last a while.
If you need to withdraw more than 2,000,000 LAK at a time, you can visit a BCEL branch. Some branches allow over-the-counter withdrawals with a foreign card for up to 5,000,000 LAK, with the same 30,000 LAK fee. Make sure to bring your passport.
For travelers in Laos, the Wise card is a cheaper, more transparent, and secure way to access money compared to traditional bank cards. It helps avoid high ATM fees, poor exchange rates, and hidden charges, making it a great choice for digital nomads and backpackers.
Of course you can bring foreign currency into Laos and exchange it within the country. A major currency beside the LAK, is obviously the USD. So if you have the chance, bring Dollars. Also the official price for the Visa on Arrival in Laos is set in USD (40 $). The national currency in Laos is still the LAK, but you will find many places that will also accept USD or other currencies, such as Thai Baht (THB). But when paying somewhere in foreign currency, the merchant will set the exchange rate, which is mostly worse than the interbank rate.
So the advice is to exchange money in a bank or at other places like gold shops, jewelry shops or money gram locations. Sometimes they will give you even a better rate than the bank. But since the lao government trying to tackle the high inflation and illegal money exchanges, the rate got quite “stable” in the past months.
For people coming from Thailand, bring some leftover THB in cash and you will also be easily able to exchange them in Laos. For THB you will get most likely a better rate. More expensive things like cars or motorbikes are most likely be priced in THB.
Travelers from the European Union can also bring their Euros and exchange them in Laos. All the official exchange rates can be found on the website of BCEL bank. There is also a list of foreign currencies being exchanged in Laos on their website.
IMPORTANT: For any foreign currency you want to exchange in Laos, all banknotes must be in crisp and perfect condition! Otherwise they might not be accepted.
Many people wonder whether credit or debit cards can be used directly to pay for goods or services. The short answer is yes and no.
Typically, hotels in tourist spots like Luang Prabang or Vientiane will likely accept card payments, but they usually charge an additional fee. This fee is typically 1.5–3%, which can add up if you’re traveling in Laos for several weeks. Upscale restaurants may also accept card payments, but with the same fees.
Therefore, it is recommended to either bring foreign currency and exchange it for LAK or use your card to withdraw LAK from an ATM.
If you book in advance on Booking.com, Agoda, or similar platforms, you can, of course, use your linked card to pay for your hotel upfront. Additionally, when booking accommodation, I highly recommend using Wise as well.
Most of visitors from the EU, USA, Canada, Australia, etc. will need a tourist visa for Laos. Its quite easy and straight forward to get a visa. Basically you just need to pay for it and will get it. There are 2 options for a lao tourist visa:
Even nowadays tourists can also use the QR-payment options and pay like a local in Laos, but it is always advisable to carry cash on you: USD or THB and LAK. For a better experience at local markets, cash can be useful, so therefore also make sure to have smaller banknotes in LAK with you. Some sellers will maybe not be able to change big banknotes if you make a small purchase with a 100k banknote.
I see many people asking in facebook groups that some of their credit/debit cards from their home countries didnt get accepted at an ATM or even got eaten by the ATM. This is unlikely, but can happen. As a traveler it is necessary to always carry 2 or 3 different credit/debit cards, doesnt matter where you go! Best would be one visa and one mastercard.
In case you dont use Wise to withdraw money, never accept the exchange rate from the ATM. In case you’re asked when withdrawing money, always choose “without conversion”. This will give you the realtime interbank rate. People complaining about the bad exchange rate when withdrawing money in Laos, is mostly because their home bank gives them a shitty rate! So once again: Use a card like Wise – it will save you cash while traveling any country, not just only in Laos.
When your trip in Laos comes to an end, get rid of your leftover LAK. The currency is useless outside of Laos and nobody will change them for you. If you have too much left, you can post in one of the facebook groups related to traveling in Laos. There are always posts like this and you might be able to sell your excess lao kip to some other fellow traveler. Otherwise just spend it or be kind and buy some locals in need some food or medical supplies – they will appreciate it.
Managing money in Laos is a mix of cash and digital solutions. While QR payments are widely accepted in urban and rural areas, cash is still essential. ATMs provide a convenient way to withdraw LAK, but fees and withdrawal limits should be considered. Using Wise or similar services can help save on currency exchange fees. Before leaving Laos, make sure to exchange or spend your remaining Kip, as it cannot be easily used outside the country. With the right preparation, handling money in Laos can be straightforward and hassle-free for tourists.
