Mar 11, 2012

Myanmar to introduce unified, float FX rate in April

Myanmar will introduce a unified and float foreign exchange rate beginning April 1, the start of the fiscal year 2012-13, aimed at totally eliminating the informal currency market, local media reported Friday, quoting the Central Bank of Myanmar.

The foreign exchange rate of US dollar against Myanmar Kyat will be officially designated as 1 to 800, ending the decades-long dual exchange rate -- the official rate and the market rate, said the Biweekly Eleven News.

Myanmar's foreign exchange rate against US dollar was traditionally designated as around 6 Kyats per US dollar since 1975, while the market exchange rate fluctuated between 780 and 1, 000 Kyats per dollar for the past several years.

Meanwhile, 11 private banks in Myanmar have been permitted as authorized dealers by the Central Bank of Myanmar to trade three foreign hard currencies -- US dollar, Euro and Singapore dollar.

The service will facilitate exporters, importers, companies, organizations hotels, travels and tours companies, airlines and individuals in dealing with their balance of foreign currencies purchasing and selling by account transfer.

Earlier, the central bank of Myanmar had also granted six private banks to open money exchange counters to operate in Yangon.

These counters were set up at banks, airports, hotels, shopping centers and major tourists destinations for the convenience of tourists visiting Myanmar and Myanmar citizens leaving the country.

In the latest development, Myanmar government has eased foreign currency exchange control, allowing exchange of up to 10,000 U.S. dollars with Myanmar kyats without any documentation starting Feb. 1.

The fresh regulations, aimed at getting rid of black market exchange, apply to both Myanmar citizens and foreigners.

There is a total of 19 private banks and three state-owned banks in Myanmar which are Myanma Economic Bank (MEB), Myanma Foreign Trade Bank (MFTB) and Myanma Investment Commercial Bank ( MICB).

Source: Xinhua