Laos Currency and Credit Cards: Essential Money Tips

1. What Is the Currency of Laos?

The official currency of Laos is the Lao Kip (LAK). It was introduced in 1945, four years before Laos gained full independence from France, replacing the Indochinese piastre that had been used across French Indochina.

While the Kip is the official currency in Laos, three currencies are widely accepted: the Thai Baht, the Euro, and the US Dollar. High-value transactions, especially at hotels, restaurants, and shops, often use US Dollars. However, you’ll find that the Kip is most commonly used for daily purchases.

One important thing to note is that Lao Kip cannot be exchanged or used outside of Laos, so it’s essential to exchange money only when you're in the country.

2. A Brief History of the Lao Kip

Initially called the Free Lao Kip in 1946, it was renamed the Royal Kip in 1955. Following the Pathet Lao’s rise to power in 1975, it became the Pathet Lao Kip in 1976, and was renamed again as the Lao PDR Kip in 1979, after the proclamation of the Lao People’s Democratic Republic.

Coins in denominations of 10, 20, 50, and 100 Kip were once issued but are no longer in circulation today.

3. How to Recognize Lao Kip Banknotes

Banknotes in Laos are brightly colored and feature prominent national symbols and figures, which makes them easy to recognize. However, given that the notes contain many zeros, it’s crucial to familiarize yourself with them to avoid confusion.

The front side of most banknotes, except the 1,000 Kip note, features Kaysone Phomvihane, a key figure in Laos’ history. The reverse sides depict famous landmarks like That Luang Stupa, Wat Phra Keo Pagoda, and more.

All banknotes, except the 1,000 Kip, feature Kaysone Phomvihane on the front with That Luang Stupa in the background.

The size of the notes increases with their value, making it easier to distinguish between them.

4. Lao Kip Exchange Rate 2026

As of mid-2026, the exchange rate is approximately 22,000–22,500 LAK for 1 USD, though the rate fluctuates daily based on market conditions. Over the past year, the Kip has continued its long-term gradual depreciation against the Dollar — a trend that has held for over a decade.

Currency Converter

Rates shift day to day, so treat any fixed number as an estimate — check a live converter shortly before your trip or right before exchanging cash.

5. Where to Exchange Money in Laos

You can exchange money in Laos at banks, currency exchange offices, hotels, and airports. The most commonly accepted foreign currencies for exchange are the US Dollar and Euro.

Banks typically offer the best exchange rates and reliable services. The most common banks in Laos are the Bank of the Lao PDR, BCEL (Banque Pour Le Commerce Exterieur Lao Public), and the Lao Development Bank. Currency exchange offices may also offer competitive rates, but it's important to verify their trustworthiness.

Knowing a little Lao will make it easier for you to interact with people and converse while traveling. Learn more: How to say hello in Lao?

It’s worth noting that Lao Kip is required for smaller purchases and in areas where foreign currency isn’t accepted, so it’s a good idea to carry some Kip with you at all times.

ATMs are also widely available in cities and tourist areas, allowing you to withdraw Kip directly. However, be aware of withdrawal fees, which typically range from 10,000 to 30,000 Kip (about $0.50 to $1.50) per million Kip withdrawn.

>>> Read more: Everything you need to know about Laos train

6. Cash or Card? How to Pay in Laos

In Laos, cash is the most common form of payment, especially in rural areas and small businesses. Lao money, particularly cash, is essential for day-to-day purchases. However, in larger cities like Vientiane and Luang Prabang, international credit cards such as Visa, Mastercard, and American Express are widely accepted at hotels, restaurants, and larger stores.

Mobile payments are becoming increasingly popular in Laos, with companies like Unitel and Beeline offering mobile payment services, as well as fintech solutions like Pi Pay and TrueMoney.

While card payments are accepted in some places, keep in mind that credit card fees can be as high as 3% per transaction, so using cash may be a more cost-effective option.

7. Cost of Living in Laos: Budget Guide

Laos money stretches further than in many Southeast Asian countries, but the cost of living can vary based on location and lifestyle.

In major tourist areas like Vientiane and Luang Prabang, prices for accommodation, dining, and activities tend to be higher than in rural areas. For example:

• Accommodation: Basic hotel rooms start at around $12 per night, while luxury hotels can exceed $120 per night.
• Food: A meal at a local restaurant can cost between $1 (22,000 Kip) and $5 (110,000 Kip), while higher-end restaurants may charge between $12 (264,000 Kip) and $25 (550,000 Kip) per person.
• Transport: Tuk-tuk rides range from $1 to $5, while local buses cost less than $1.
• Tourist activities: Visits to tourist attractions cost between $1 to $12, while more expensive activities like trekking can range from $55 to $120.

>>>  Read more: Laos Cuisine: 12 Typical Dishes You Must Try

8. FAQs About Laos Currency

What is the currency of Laos?
The Lao Kip (LAK), symbol ₭, is the official currency.

Can I use US Dollars in Laos?
Yes — USD is widely accepted for larger purchases (hotels, tours, bigger shops), but Kip is needed for everyday, small-scale spending.

What's the current exchange rate for Lao Kip?
As of mid-2026, roughly 22,000–22,500 LAK per 1 USD — check a live converter for the exact current rate.

Can I exchange Lao Kip outside of Laos?
No. Lao Kip is a closed currency and can't be exchanged or used abroad, so only convert what you need for your trip.

Are there coins in Laos?
No. Only banknotes (500₭–100,000₭) are currently in circulation.

Is it better to pay with cash or card in Laos?
Cash, in most cases — card payments can carry fees up to 3%, and cash is required in rural areas and smaller businesses.

Final Thoughts

Understanding Laos currency is key to enjoying your trip without any financial confusion. Exchanging money in Laos is an essential part of the travel experience, just like learning a new language. It may seem complicated at first, but with a little practice, you’ll become skilled at managing Lao Kip, helping you focus on enjoying your trip. So, pack your bags and get ready for an unforgettable adventure in Laos!

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