The Central Bank of Myanmar has issued notification that foreign exchange earned by locals in Myanmar must be deposited in accounts at licensed banks and exchanged for the local currency within one working day, Reuters reports.

In a notification dated 3 April, the central bank said it would issue exemptions to the new rule separately and that foreign currency transferred abroad should be done via the licensed Foreign Exchange Trading banks.

The Myanmar junta is seeking more control over the flow of foreign currency.

The order, signed by Central Bank of Myanmar Governor Than Nyein, would also apply to foreign currency that came into the country before Sunday, according to the notification. It said those who did not comply would face legal action under the Foreign Exchange Management law, the report says.

The exchange rate between the US dollar and Myanmar kyat is K1,850 to US$1, and other currencies will be exchanged at the rate calculated by the Central Bank, DVB reports.

The official central bank exchange rate for the kyat tends to be well below the unofficial black market rate.

The move comes as the Myanmar economy continues to flounder in the wake of the 2021 military coup and the exit of a number of foreign companies and investors, prompted to leave by both the excesses of the military and a troubled business environment.

Last year, the central bank briefly tried tethering the Myanmar kyat to a reference rate against the dollar after a slump in the exchange rate.

In March, Myanmar authorities announced a plan to start accepting the Thai baht currency for settling border trade transactions in order to reduce dependence on the dollar and reduce inflation pressures, Reuters reports.