Mawlamyine, 4 November
The US sanctions on Myanma Oil and Gas Enterprise (MOGE), which is the main source of dollars, may further affect the flow of dollars for the military council, according to an economic expert.
The US Treasury announced on October 31 that financial services related to the junta-run MOGE will be sanctioned starting December 15.
The action prohibits some financial services, including loans, accounts, insurance, investments, and others, by Americans to the MOGE, directly or indirectly.
An economist told Than Lwin Times that the sanctions on MOGE could harm the dollar source for the military council and have a major impact on the trade sector.
He said, “The MOGE will no longer be able to generate dollars for the military council due to US sanctions and will instead be able to trade in Yuan and Baht for China and Thailand.”
Since MOGE mainly exports its gas to China and Thailand, it will not affect the trade with those two countries, but if the US puts pressure on Thai banks, it could have a big impact on the business.
Along with the United States, the European Union’s European Common Market, which includes 27 countries, imposed sanctions on MOGE in February.
The sanctions against MOGE could have a significant impact on the purchase of jet fuel, raw materials for the production of military equipment, and ammunition for the junta army.
The United States has also said that the sanctions against MOGE are intended to hold the military accountable for its atrocities and killings of civilians.
News – Than Lwin Times
Photo – AFP