Exemptions from the conversion from US dollar to kyat depend on Myanmar kyat stability, and thus the restrictions could be lifted, said Aung Naing Oo, union minister for investment and foreign economic relations.
He was responding to a question from The Straits Times. The news agency asked if this notification issued by the Central Bank of Myanmar (CBM) would remain for a certain period or permanently. The minister replied that the exemptions for some organizations from the dollar-kyat exchange were granted by a government-established committee. But such restrictions included in the central bank’s notification could be lifted depending on the stability of Myanmar kyat, he added.
CBM announced on April 20 that it would exempt seven organizations, including MIC-licensed FDI, investments made in special economic zones and state-owned/national-owned international airlines, from dollar to kyat exchange within a day.
According to the Notification No (12/2022) of CBM issued on April 3, the foreign exchange earnings of the residents in the country must be returned to Myanmar and the foreign exchange accounts opened at the Foreign Exchange (AD) licensed banks must be exchanged for Myanmar kyats within one working day.
According to the decision of the Foreign Exchange Supervision Committee Meeting No (4/2022), it is not included in the Notification No (12/2022) of the Central Bank of Myanmar issued by the reference letter.
The exemptions mentioned in the statement include businesses with the foreign direct investment (FDI) with the approval of the Myanmar Investment Commission (MIC). This includes investment in SEZs.
Foreign diplomats, who have established diplomacy with Myanmar and have embassies in Myanmar, family members and foreign staff members of the embassy at a similar level, are included in the exemption.
This includes UN staff working for the United Nations and its affiliates in Myanmar and Myanmar nationals holding (Laissez Passer) passports.
This includes foreign staff at development agencies that are assisting Myanmar.
International organizations (eg. the Red Cross and the International Labor Organization) and foreign diplomats from INGOs and development agencies (eg TICA / JICA) are included.
Seven individuals, businesses and organizations have been exempted, including state-owned / national-owned international airlines.
The statement said foreign exchange (AD) licensed banks should be carried out only after obtaining the relevant documents from the organizations for foreign currency related activities for organizations and businesses, which are not included in the Notification No. (12/2022), and to make sure Know Your Customer (KYC) and Customer Due Diligence (CDD). It is stated that it should be done only if it is correct.
It is necessary to submit the activities to the Central Bank of Myanmar and record them. Failure to do so is the responsibility of the bank, it said.
