Vientiane, Aug 10 (IANS): Laos plans to establish the Lao Bullion Bank to build gold reserves, enhance financial stability, and strengthen the Lao Kip.

The establishment of the bullion bank will contribute to the implementation of the vision of the Party and government in terms of maintaining and creating financial and economic stability that will unlock the potential of the national finance system and the treasury, strengthen the value of the Lao kip, and boost fundraising and national liquidity, Lao national TV reported on Saturday.

It will help to address economic and financial disruptions, so that, the current economic challenges can be overcome, Xinhua news agency reported quoting the Lao national TV.

The bank will allow both individuals and legal entities to deposit their gold and use other financial services offered by the bank, enhancing its role as a central institution in the gold market.

The bank will also standardise gold trading and investment, attracting both domestic and international stakeholders.

The bank is expected to begin Phase 1 of operation in September and a full operation of services in November 2024.