The Bank of the Lao PDR (BOL) has long set its sights on modernizing the Laos banking sector.
Lao PDR has exported electricity to neighboring economies, earning the title of the “Battery of Southeast Asia” in recent years. However, the construction of power plants has resulted in higher external debt, putting pressure on the economy’s macro-financial stability.
The Lao PDR’s economy is expected to maintain its recovery from the COVID-19 pandemic in 2023. However, currency depreciation and surging inflation are challenges to sustaining the economic recovery.
In March 2020, Japanese banks experienced stress in their U.S. dollar funding due to a liquidity crunch in the U.S. dollar funding market.