VIENTIANE, Nov. 20 (Xinhua) -- The Lao government has intensified efforts to control inflation by adopting more restrictive monetary policies.
Speaking at a session of the National Assembly, Prime Minister Sonexay Siphandone highlighted several measures aimed at curbing inflation, including tighter monetary policies, an enhanced exchange rate management mechanism to prevent volatility, and initiatives to regulate foreign currency flows into the banking system.
According to Lao News Agency on Wednesday, the government was also exploring a price control system and utilizing trade policies to limit imports of luxury goods. Additionally, stringent measures have been implemented to combat illegal trade.
To regulate money supply, the government has focused on maintaining appropriate liquidity levels.
The government has increased foreign exchange reserves, requiring exporters to transfer foreign currency earnings to Lao banks.
The 10-month average inflation rate for 2024 stands at 24.4 percent, with projections to drop below 20 percent by year-end, significantly lower than the 31.23 percent average inflation rate recorded in 2023. ■