Business

CBM defends licence withdrawal

The Foreign Exchange Acceptor and Holder Licences are being revoked since they are no longer needed to open a foreign currency account, accept overseas transfers and to change money, according to Win Thaw, deputy director general of the Foreign Exchange Management Department at the Central Bank of Myanmar (CBM).

Development funds may be forgotten: report

The development funds may dissipate without producing any results along with the shift in government, a Myanmar Development Resource Institute (MDRI) forum heard

The event, set up by the Asia Foundation and Action Aid Myanmar at the Yangon Novotel, heard that the government’s poverty alleviation scheme spent Ks16 billion (US$12.5 million) in 2013-14 and Ks50 billion in the following year. The regional development funds amounted to Ks33 billion.

Ayeyarwady Bank to virualise with VMware partnership

Ayeyarwady Bank has partnered with the VMware, Inc, to empower its digital services, according to the bank’s managing director Phyo Aung.

“In the technology age, our bank will offer the clients better services through the partnership with VMware. All of our 124 branches will be ready for faster and safer banking services,” said the managing director.

VMware will virtualise the bank’s data centres and network infrastructure through its partnership with NEX4 ICT Solutions.

Companies can still pay salaries in USD

A Myanmar citizen is legally permitted to carry up to US$10,000, and the recent revocation of Foreign Exchange Accepter and Holder Licenses will not be applicable to staff salary payments in dollars, said Win Thaw, deputy director general of the foreign exchange management department to the Daily Eleven on October 19.  

The Central Bank of Myanmar issued an announcement on October 13 that it will revoke Foreign Exchange Accepter and Holder Licenses as of 19 October.

Border auto market immune to rise in kyat value

A slight rise in the value of the Myanmar kyat has had no effect on automobile market prices at the Myanmar-Thailand border in Myawady, reports say.

The kyat value increased from Ks 1,287 per US$1 to Ks 1,283 per $1 after the foreign exchange acceptor and holder licenses were revoked on Saturday.

“Although the rise in kyat used to improve the auto business, there more factors to consider today,” said a dealer.

The supply of automobiles also affects prices, said broker Ko Gyi Soe. “The deals are made mainly in kyat.”

Foreign exchange licences to be revoked

The Central Bank of Myanmar has announced that it would revoke its Foreign Exchange Acceptor and Holder Licences on October 19 (Monday).

Win Thaw, deputy director general, announced that dollarisation, the high demand for dollars and the kyat’s depreciation might harm the exchange rate further.

The bank said government bodies, private organisations and companies must use the kyat for all payments to prevent instability.

Govt land running low for housing

The Yangon Region government is facing a shortage of vacant state-owned land to develop housing, according to the Human Settlement and Housing Development Department.

The regional government is trying to meet the growing housing demand as migrants flock to Yangon to find work.

Clothes most pawned items

According to pawnbrokers, most of the items being pawned are clothes due to economic hard times.

“Most of the items that come our way are clothes. Most people come in the morning when they are going to the market and have no cash to buy groceries for the rest of the day. There are also many who pawn golden accessories,” said Moe Kyaw, a pawnbroker in Hlaingthaya Township.

Construction bank needs insurance to make loans

The Construction and Housing Development Bank (CHDB) cannot give loans to private developers unless there is a solid insurance policy, says Win Zaw, its managing director.

The bank is operating with Ks100 billion (US$78 million) in capital and currently offers loans of up to eight years for apartments built by the Department of Human Settlement and Housing Development.

Myanmar-India border trade pauses

Heavy rain has created a number of transportation difficulties around the Myanmar-India border, bringing trade between the two countries to a temporary halt, according to the Border Trade Department.

“The roads have been heavily damaged since October 9. This season’s main export is areca nuts. The main import is motorcycles. The Kalay-Tamu road is ruined. The trade flow will fall,” said an official at the Tamu border gate.

Continuous heavy rain has flooded bridges along the road, and traits are expected to take two weeks.