The Military Council’s Central Bank of Myanmar (CBM) changed its regulation of mandatory exchange of foreign exchange earned from exports to Myanmar Kyat from the previous 65% to 50%.

The exporters can use independently the remaining 50% for themselves, transfer to others who are not an Authorized Dealer (AD) licensee or selling to the AD banks.

The exporters can now sell the 50% of export earnings at the market rate instead of the previous forced exchange of 65% at the reference rate of 2,100 Kyats against the US dollar fixed by the CBM after this notification was issued by the central bank.

The CBM issued this notification on 13 July. Traders predict this will help exporters.

The CBM issued the previous notification dated 5 August 2022 which ordered the exporters to exchange 65% of their export earnings to Myanmar Kyat at the rate fixed by the bank.

Traders claim the forcible exchange of 65% of export earnings at the rate fixed meant huge difficulties and hassles for exporters.

At a meeting held between the junta chief and Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI) on 2 July, the exporters presented the difficulties faced in their business and requested him to ease this ratio from 65% to 35% of export earnings.

Currently the CBM fixed the reference exchange rate at 2,100 Kyat against the US dollar but it is traded in the open market at above 3,000 Kyat.