Failure of Central Bank to sell foreign currency for the import sector, likely to result in illegal remittance


Mawlamyine, April (6)

Businesses fear that if the military council fails to sell foreign money for import sectors, illegal remittances may occur.

On April 4th, the regime’s Central Bank issued a decree on foreign currency exchange.

Foreign exchange revenues must be exchanged for Myanmar currency within one day, according to the statement.

Furthermore, whenever foreign currency is transferred overseas, it must be done through licensed banks with permission from the Foreign Exchange Supervisory Committee.

“Who will sell to those doing business in foreign currency? Will the banks be able to sell it? Will Foreign Exchange Supervisory Committee sell? It doesn’t matter if they do, or else illegal remittances will start to show up,” remarked a businessman.

Imports and exports sectors may be affected by the military council’s attempts to centralize dollar.

The regime’s Central Bank has set the exchange rate at Ks 1,850 to the US dollar, and will give additional instructions if the rate changes.

In the open market, the dollar is around Ks 2,050, but exporters are facing losses because the dollars in the bank are being sold at the central bank’s rate.

Failure to comply with the statement will result in prosecution under the Foreign Exchange Management Act, according to the Central Bank.

News – Than Lwin Times


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