Myanmar has allowed Yuan/Kyat direct payments on the China-Myanmar border, according to a notification issued by the Central Bank of Myanmar on December 14.

The CBM said the proclamation was issued by exercising its authorities under Sections 17 and 22 of the Foreign Exchange Management Law.

To increase Sino-Myanmar trade and facilitate the flow of goods, Yuan/Kyat direct payments were allowed on the Sino-Myanmar border to facilitate the two countries’ payment and clearing systems and to increase domestic currency in line with the objectives of ASEAN Financial Integration.

Designated banks have also been allowed to open Yuan accounts of importers and exporters for cross-border trade.

Therefore, the designated banks are required to adhere to the Guidelines for the Direct Use of Yuan/Kyat in Sino-Myanmar border trade. And this notice shall take effect from the date of the issuance, the CBM announced.