The Central Bank of Myanmar (CBM) has ordered state ministries and the local authorities to not use foreign currency when conducting domestic transactions, reports Reuters.

Deputy Central Bank Governor Win Thaw said that private business schools and state ministries were continuing to hold and transact in US dollars instead of the Myanmar kyat.

'In addition to the increasing demand for foreign currency, the exchange rate may fluctuate due to the practice of receiving and disbursing foreign currency for goods and services purchased within the country,' he added in a statement.

Since the military coup, the exchange rate of the Myanmar kyat has fluctuated as the country’s economy faced problems following the military takeover.

The CBM has set an artificially low exchange rate of 1,850 Myanmar Kyat to the US$1, with the real, or black market, rate being noticeably higher.

The junta order comes almost two months after the authorities ordered all funds in foreign currency accounts held by Burmese citizens be transferred to kyat accounts.

Exceptions have reportedly been made to foreign business and investor accounts and the accounts of foreign embassies, following an outcry seemingly spearheaded by the Japanese embassy, representing a country with extensive investments in the country.