Nay Pyi Taw, 21 September

The junta-controlled Central Bank announced on 19  September that it has revoked the business licenses of 123 companies that have the right to buy, sell, and exchange foreign currency.

The executive committee meeting of the Central Bank determined to revoke the licenses of those companies since they do not adhere to the rules, regulations, and directives.

The statement did not, however, specify which sections of the Foreign Exchange Management Law had been violated by the companies.

U Tint Lwin, a financial expert and a member of the Committee Representing Yangon Region Hluttaw (CRPH), expressed, “The closure of foreign currency exchange businesses may cause the black market to grow even more because of the failure of currency exchange businesses”.

Additionally, he noted that since there is such a great demand for dollars to pay for imported items, foreign exchange companies have been forced to close, forcing consumers to purchase foreign currency on the black market. Consequently, the people may feel the effects of high commodity prices.

A businessman said, “The move of the military council threatens the foreign exchange business again, and this may cause huge challenges for the foreign currency sector”.

He said, “Since the foreign exchange business has been closed, it is no longer possible to exchange foreign currency as easily as before. There will be no foreign currency exchange because the exchange rate of the banks set by the central bank is extremely different from the open market.

Businessmen claimed that the tourism sector might be impacted by the military council’s decision to shut down the majority of the foreign exchange companies, which also included travel agencies, hotels, and trading firms.

According to financial analysts, the series of closures of foreign exchange companies is an attempt by the military council to control foreign currency, which shows the huge demand for foreign currency.

The military council has revoked the business licenses of 168 foreign exchange companies this year, and this latest revocation is also a record number of closures.

News – Than Lwin Times

Photo: Social Media

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