Only 35 percent of the export earnings should be exchanged for kyats: CBM

Published 7 December 2023

EMG

The Central Bank of Myanmar (CBM) announced on December 6 that instead of 50 percent of the export earnings, only 35 percent of them will be exchanged for Myanmar kyat as specified in the Central Bank's Notification No. (12/2022).

This notice is issued by the CBM in exercise of the authority conferred by Section 49, subsection b of the Foreign Exchange Management Law.

The CBM has determined that 50 percent of the amount of export earnings received by exporters from exporting goods shall be exchanged for Myanmar kyats as specified in the Central Bank's Notification No. (15/2023) dated on July 7, 2023.

According to the Central Bank's Notification No. (12/2022), only 35 percent of the export earnings received from exports should be exchanged for Myanmar kyat instead of 50 percent, according to the statement.

"We made two relaxations there. The two relaxations were issued yesterday regarding the foreign currency of the AD licensed banks to operate freely depending on the exchange rate of the buyer and the seller. Today, for the exporters, 50% of the amount of the export earnings was exchanged in Myanmar kyat as determined by the CBM, but now only 35% has to be exchanged," said Major General Zaw Min Tun.

Major General Zaw Min Tun said that the above-mentioned relaxations are aimed at increasing manufacturing and export volumes for the development of our country and allowing domestic products to be exported.

"In the case of this action, there will be a small impact on import matters because it is still going anywhere. The most significant phenomenon that I have just mentioned will have an effect on the fuel sector. This effect will be short-lived. Regarding fuel, the amount of fuel that we need to import is ready for import in our country. There are already oil tankers arriving for import," Major General Zaw Min Tun said.

At the time of the policy change, the money that will come back from the exporters, money coming back from workers working abroad and the money from illegal money transfer businesses will be more inflows as they will benefit, and the market will be regulated, Maj. Gen. Zaw Min Tun said.

It is known that the notice will be effective from December 6, 2023, which is the date of its publication, and that non-compliance will be subject to action under the Foreign Exchange Management Law.