Nay Pyi Taw, July (15)
The junta-controlled Central Bank has reduced the percentage of export earnings to Myanmar kyats to 50 percent, but this may not be effective for country’s economy, economists and traders told Than Lwin Times.
The military council has previously ordered that 65 percent of the export earnings must be converted into Myanmar Kyats within one working day according to the Central Bank’s reference price since November last year. And the remaining 35 percent of export earnings were allowed to be freely used by themselves within 30 days, transferred to others, or sold at AD licensed banks.
However, the Central Bank of the military council announced on July 13 that instead of 65% of export earnings, only 50% must be exchanged into Myanmar Kyats at the reference price.
An economist said, “Because the export sector is declining, the military council is making such relaxations, but this is not an effective way. The authorities should control the export earnings to a maximum of 20 or 25 percent. Despite the relaxation of restrictions, the foreign exchange counters that trade with the external market are closed by the junta”.
He added that since Myanmar mainly exports agricultural products during the rainy season, the easing of restrictions may not have a positive effect on the export sector.
On the other hand, in order to control the export sector, the military council instructed to apply for an export license starting April 1 for goods that did not need to apply for an export license before.
However, Myanmar’s export and import sectors showed a deficit of more than 1,200 million US dollars in the two months of April and May of this year, according to the junta’s Ministry of Commerce.
Myanmar exports rice and rice products, beans, oilseeds, corn, rubber, aquatic products and other agricultural products to some foreign countries, including China and Thailand.
News – Than Lwin Times
Photo: Social Media