In a strategic move to enhance financial stability, Laos is set to launch the Capital Flow Management System (CMS) by the end of February 2024. According to Lao National TV, the Ministry of Finance, Ministry of Industry and Commerce, and the central bank are collaborating to implement this innovative system.
The CMS is designed to monitor and manage the flow of foreign currency within the country. By linking business registrations and the transactions of exporters and investors with commercial banks and the central bank, the system aims to provide a comprehensive overview of international fund movements.
One of the standout features of the CMS is its dashboard, which offers relevant ministries real-time insights into the value and types of export and import activities. This tool is expected to play a crucial role in maintaining economic and financial stability, mitigating risks from fluctuating exchange rates, and fostering a more conducive environment for investment and international trade.
Experts believe that the introduction of the CMS will not only streamline financial operations but also attract more foreign investors by providing greater transparency and reliability in currency management.
Reference(s):
Laos to launch a new system to improve foreign currency management.
cgtn.com
