Central Bank of Myanmar make public notice to take action against illegal keeping of foreign currency

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Nay Pyi Taw, 22 August

The Central Bank of Myanmar under the control of military regime announced on 20August that people who keep foreign currencies without authorization or license will face prosecution under the Foreign Exchange Management Law.

The statement said, “A resident can possess, for up to six months from the date of receipt, US$ 10,000, or other types of foreign currency in an equivalent amount, if obtained legally by this person”.

If the foreign currency is not used within six months, it shall be sold to, and exchanged by, foreign exchange dealing licence holders at the market price or deposited in a bank account, it said.

The junta-controlled Central Bank warned that holders of foreign currency who do not comply with the notice and hold foreign currency without a license will be prosecuted under the Foreign Exchange Management Law.

According to a businessperson, the military council’s remark shows that they are facing  foreign exchange shortages, which could cause problems for people who buy and collect dollars. Now, when the exchange rate for one dollar is around 4,000 Kyats, the authorities try to exert legal authority over foreign currency,” he told the Than Lwin Times.

According to Section 9 of Foreign Exchange Management Law, purchases and sales of foreign exchange shall only be carried out by the authorized person to deal in foreign exchange licence and purchases and sales of the authorized person to change foreign currency licence shall only entitle to deal in foreign currency in cash and traveller’s cheques.

Daw Than Than Swe, Governor of Central Bank of Myanmar, said on August that the effective action will be taken against speculation of abnormal foreign currency rate.

 Moreover, she stated that citizens are only permitted to hold Myanmar currency, and if they wish to hold foreign currency, they must have proper documentation, and they are only allowed to keep up to $1,000 USD, and they would be punished if they do so illegally.

The military council formed the Foreign Exchange Supervisory Committee in early July to oversee foreign currency, but it has yet to control the problem of inflation in foreign currency.

News-Than Lwin Times

Photo-CJ

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