Laos’ PM has issued directives to regulate foreign currencies to provide an influx of FX from exports and foreign investments and promote the use of the kip. The move aims to enhance the foreign currency supply, drive de-dollarization, and stimulate demand for the Lao kip amid high inflation and public debt mainly due to Lao kip depreciation. Notably, Foreign investment inflows through the banking system are significantly lower than registered capital investments, leading to a payment imbalance. Inflation in Laos fell to 28.64% YoY in June, down from 38.86% in May.