Money
Laos’s currency is called the KIP, pronounced “kip”. Bills that represent Kip are broken down into 500; 1000; 2000; 5000; 10000; 20 000; 50, 000 and 100, 000 KIP denominations. Please be aware that the KIP is a non-convertible currency and cannot officially be exchanged abroad. The official exchange rate in Laos is around 8,000 Kip = 01 USD (as of July 2014).
Foreigner currencies such as US Dollars, Euros, Thai Baht, Australia Dollars…are popularly accepted in Laos to be exchanged in KIP and tourists are entitled to exchange easily money at the current market rate at the banks, airport or at any licensed moneychanger. The presentation of your passport is sometimes requested. Please ask your tour guide for assistance in case you need.
Credit Cards And ATM
The network of ATM machines covers the most visited cities in Myanmar by tourists and business travelers. Maximum amount per withdrawal is 1,000,000/time and maximum 7,000,000/day. The ATMs charge a small fee of 25 000 KIP (subject to change) or equivalent for each transaction. Some visa cards are restricted by the issuing bank for oversea usage and therefore, customers may require seeking the approval of the issuing bank in order to do so.
Credit Cards are widely accepted by local suppliers in big cities (such as Luang Prabang and Vientiane), usually high-end hotels or shops, however they usually entail a 2.5-3% surcharge. In others, the use of cash is more popular and recommended.
Traveler Checks
Traveller checks are rarely accepted by local suppliers so we do not recommend you to use it in Laos.
Bargaining
In Laos you are expected to bargain. Do so freely but respectfully. Keep a smile on your face, be realistic about the expected discount and if the vendor does not reach your final price do not push him or her too hard.
