Nay Pyi Taw, 15 November
The junta-controlled Central Bank of Myanmar (CBM) has threatened to take effective action against those who fail to deposit the export earnings obtained from the export of goods to foreign countries.
The CBM announced on November 11 that those who fail to follow the instructions will be prosecuted under the Foreign Exchange Management Law.
The announcement states that export earnings from Asian countries must be credited to the bank account within 45 days of shipment, and those from other countries must be credited to the bank account within 90 days.
The CBM has threatened to take action on November 17 against export companies that do not deposit export earnings into their bank accounts in accordance with the requirements.
An export-importer told Than Lwin Times, “The military council is also checking the export earnings during the NLD government.” He went on to say that the import and export sectors are likely to be reduced due to further pressures amid the stringent rules.
An economist opined, “The military council’s stricture on export earnings may affect the import sector and raise commodity prices again.”
The military council ordered that 65 percent of export earnings be exchanged to Myanmar currency at the central bank’s reference price within one working day, then on July 13 it announced that only 50 percent of export earnings must be exchanged to Kyats.
On the other hand, the military council has directed that export licenses be applied for beginning April 1 for goods that previously did not require export licenses due to the need for foreign currency.
The World Bank warned earlier this year that the military council’s misguided policies would permanently harm Myanmar’s economy, which has deteriorated since the military coup.
News-Than Lwin Times
Photo-CJ