Myanmar orders banks to exchange foreign currency for Kyats

[ASEAN NOW Content Team]

 

Many in Myanmar's military-run country are concerned about potential losses following a central bank edict requiring all foreign currency in bank accounts to be changed into the local currency.

Businesses and individuals were notified on Sunday that they must convert dollars and other foreign cash into kyats within one day or risk legal ramifications.

 

It stated that foreign monies can only be sent abroad with official approval.
It stated that more information on the rules would be forthcoming.

After seizing power on Feb. 1, 2021, and deposing the country's elected government, Myanmar's military commanders are facing a slew of penalties.
The order to hand up foreign currency signals that the authorities are running out of hard currency to pay bills and buy essential goods like oil, gas, and weapons.

 

Hard currency is also required to service Myanmar's foreign debt, which is estimated to be in the range of $10-$11 billion.

Holders of foreign currency accounts in Myanmar were told to create new accounts to convert their funds into kyats, according to a central bank edict (pronounced CHUHTs).
People who earn foreign cash are required to convert their earnings into kyats, which are not convertible and cannot be carried out of the nation.

 

The bank employee, who asked not to be identified because they were not authorised to speak to the media, said account customers were concerned about losing money because the central bank's official exchange rate of 1,850 kyats per dollar is lower than the black market rate of 2,030 kyats per dollar.

According to one unlicensed money changer contacted on Tuesday, no trades were taking place.

When queried about the order, the majority of the seven people with foreign currency accounts indicated they had not established new accounts and were unaware of the ramifications.