12-point suggestion submitted to control unstable currency exchange rate

Writer: 
Phyo Wai

 

Ye Min Aung, Vice President of the Union of Myanmar Federation of Chambers of Commerce and Industry submitted a 12-point suggestion to the private sector development committee led by Vice-President Myint Swe.

The move aims to deal with the instability of currency exchange rates systematically by the Union government and the Central Bank of Myanmar.

He suggested the government should control quota, tariff rate quota, minimum access, standard, specifications, tax and customs system for imported goods.

His suggestion also includes the expansion of trade financing for overseas banks, the implementation of bilateral currency swap schemes with major trading partners such as the use of Chinese Yuan and Thai Baht for trading with those countries, the development of interbank currency market under the supervision of the central bank and the formation of working groups for the rapid establishment of import-export public bank with the inclusion of local and foreign shareholders.

In addition, he suggested tax reliefs for export industry to effectively promote the export sector, the formation of National Export Promotion Council to penetrate local products to the international market and coordination for fruitful trade, coordination with relevant trading partners on official trading and the extensive use of banks in border trades due to a drop in the inflow of 40 per cent of export earnings into local banks, the issuance of directives that ban the use of more dollars in settlement, the expansion of private foreign remittance services for an massive inflow of salaries sent by Myanmar migrant workers, helping foreign investors for the inflow of capital brought-in, creating business-friendly environments on the ground, the extension of staff strength of customs department to offer round-the-clock services for export industry and the swift scrutiny of the inflow of loans and investments of foreign micro finance companies by the central bank and the Ministry of Planning and Finance.

Zaw Min Win, President of UMFCCI said: “Currently, there is no currency stability. People worry that the currency depreciation against US dollar may go up commodity prices. The UMFCCI has formed a committee to give suggestions including the currency stability.”

When meeting with Daw Aung San Suu Kyi, I will discuss the currency exchange rate. I will submit the major points about the ways of how to develop the country’s economy in the future, he added.

Myanmar State Counsellor Daw Aung San Suu Kyi will meet with local entrepreneurs on August 27.

On August 25, the value of a US dollar stood at Ks-1,515 and local gold price hit a record high of Ks-963,500 per tickle.