The Central Bank of Myanmar (CBM) yesterday took decisive action by suspending the licences of four exchange counters in the Yangon Region. 

This suspension, lasting three months, comes as a consequence of these exchange counters failing to adhere to the rules and regulations outlined in the Foreign Exchange Management Law.

The CBM is actively developing an Online Trading Market, which will include participation from exporters, importers, and banks.

The primary goal is to foster stability in the foreign currency market and maintain a steady foreign exchange rate. To facilitate this, small foreign currencies required by travelers are typically exchanged at authorized counters operating under the CBM’s guidance.

In pursuit of regulatory compliance, the CBM conducted thorough inspections of foreign exchange counters. Their objective was to ensure that business operators engaged in foreign currency exchange strictly adhered to the provisions outlined in the Foreign Exchange Management Law and followed the instructions issued by this legislation.

During a joint inspection conducted by a combined team, which included representatives from the Gold and Currency Market Monitoring, Maintenance, Vigilance Work Committee, the CBM, the Yangon City Development Committee (YCDC), the General Administration Department, and law enforcement organizations, several violations were identified.

The authorized foreign currency exchange dealers: Thura Nay Tun (Fame Money Changer),Lead Star Money Changer, Steber Group Money Changer and Asia Shwe Thee Money Changer were found to be in breach of the law.

These dealers failed to comply with the instructions and violated Section 22 of the Foreign Exchange Management Law.

In response to these violations, the CBM has announced that the money changer licences for the aforementioned dealers will be suspended for three months under Section 35 of the Foreign Exchange Management Law.

Additionally, the CBM intends to conduct surprise checks to further stabilize and strengthen the foreign currency market and foreign exchange rate.