Governor Daw Than Than Swe of the Central Bank of Myanmar (CBM) announced that the CBM will implement the Rupee/Kyat direct payment system using the Special Rupee Vostro Account (SRVA) for bilateral trade between Myanmar and India.
The CBM aims to boost bilateral trade with neighboring countries, facilitate bilateral transactions and trading, reduce the use of US dollars and exchange rate risk, and promote the use of local currency.
The CBM has already held meetings with the Indian Embassy to Myanmar, the Reserve Bank of India, the Department of Financial Services, and the Ministry of Finance and approved Joint Concept Note Paper and Standard Operating Procedures (SOPs).
The guideline for payment procedures under the SRVA has also been released, and payments can be made starting in February.
The briefing will also be organized for merchants by cooperating with UMFCCI and the Indian Chamber of Commerce. The designated banks for Rupee and Kyat payments, such as UAB, CB bank PCL, and Punjab National Bank, explained the Rupee/Kyat trade settlement mechanism during the meeting.
The governor concluded the meeting, which was attended by vice-governors of CBM, joint secretary of the central committee on ensuring the Smooth Flow of Trade and Goods, senior officials from Ministry of Commerce, Custom Department, Trade Department, and Internal Revenue Department.
