VIENTIANE, July 5 (Xinhua) -- Lao Prime Minister Sonexay Siphandone has promised that the Lao government will take immediate actions to address the economic and financial difficulties facing the Southeast Asian country, including skyrocketing inflation.
The cabinet would immediately deal with these issues, especially the currency exchange rates and rising prices of consumer goods, Lao National TV on Wednesday quoted the prime minister as saying at a session of the National Assembly.
Sonexay made the remarks in response to questions raised by National Assembly members concerning inflation, depreciation of the Lao currency kip, fluctuations in currency exchange rates, the rising prices of goods and the soaring cost of living.
"As the chief of the cabinet, I think these issues are the most concerning and urgent. They warrant the government's immediate attention in collaboration with members of the public, whose support and cooperation are required," he said.
Sonexay said these issues could largely be attributed to external factors, especially the COVID-19 pandemic and global economic and political uncertainties.
He noted that the most immediate actions would be to restructure the balance of trade with partners where a deficit had been recorded. In addition, more would be done to ensure that financial transactions take place through the banking system, and commercial banks provide adequate currency exchange units.
The Lao government will also continue to prioritize improvement of the foreign currency market through multiple commercial markets, and improve the management of companies doing export and import businesses.
"The government, together with other parties involved, will also continue to deal with the problem of illegal currency exchangers," the prime minister added.
In terms of mid- and long-term solutions, the Lao government will continue to implement its monetary policy in keeping with precise directions. This includes giving commercial banks more flexibility in setting currency exchange rates, and strengthening the management of foreign currencies to ensure that more will enter the banking system, said Sonexay.
The Lao National Assembly kicked off its 5th ordinary session on June 26, which will last through July 18, opening the floor for members of the parliament to discuss economic issues. ■