Laos Travel Guide

The kip (pronounced keep), the official Lao unit of currency, comes in denominations of 500, 1,000, 2,000, 5,000, and, only recently issued by the Lao government, 10,000 and 20,000 notes. The new notes are an improvement, but with the current exchange rate (at press time, 10,000 kip = US$1), that still means that the largest unit of currency is just US$2/£1.10. For your larger purchases, you'll want to use U.S. dollars, accepted widely, or Thai baht, commonly accepted but more popular near the border. Be prepared to handle bricks of Lao cash when you exchange foreign currency.

Laos is still very much a cash country, especially outside Vientiane. Virtually all hotel and guesthouse rates, upmarket restaurant prices, transportation charges, and expensive items' price tags are quoted in U.S. dollars. Use kip for smaller purchases, local transportation, and pocket money. Remember to exchange your kip into dollars or baht before leaving Laos. Kip cannot be exchanged outside of the country.

Currency Exchange -- You can exchange currency at Wattay International Airport, hotels, banks, and on the black market, with the rate of exchange worst at hotels and best on the black market (though the difference is negligible). Because the U.S. dollar is so widely accepted, it's not a bad idea to change traveler's checks to dollars at a major bank (usually for a 2% fee) before going for any extended time out of the larger towns.

Traveler's Checks -- Traveler's checks in U.S. dollars and other major currencies are accepted in all banks in Vientiane and Luang Prabang, and some in Xieng Khouang and Pakse, but rarely by vendors.

Credit Cards -- Credit cards are gaining wider acceptance at hotels and restaurants, but the majority are still cash-only. Lao Airlines accepts American Express, MasterCard, and Visa. You can get cash advances on your Visa card at La Banque Pour Le Commerce Extérieur Lao (BCEL) and at Lane Xang Bank branches in larger towns throughout the country. Both banks have local ATM service but have yet to make the international link.

To report a lost or stolen American Express card, contact Diethelm Travel, Setthathirat Road, Namphu Square, Vientiane (tel. 021/213-833 or 021/215-920; www.diethelmtravel.com). For other cards, call the hot lines in Bangkok.