Myanmar to curb use of US dollar to stabilise domestic currency

[Jonathan Fairfield]

Myanmar to curb use of US dollar to stabilise domestic currency

Myanmar has announced it will curb the widespread use of US dollars by firms, to stabilise the tumbling domestic currency, the kyat.

The central bank has revoked foreign exchange licenses from businesses ranging from hotels and restaurants to golf clubs and hospitals.

It said a growing preference for the US dollar has spurred demand for it, and led to "exchange rate instability".

The US dollar is used widely in the tourism industry.

Since the end of military rule in 2011, Myanmar has launched economic reforms, adopting a floating rate for the kyat.

The licences, however, have allowed many people to use the dollar for domestic transactions, bypassing the local financial system.

The kyat has fallen more than 20% so far this year, making it one of the worst-performing currencies in the region.

Full story: http://www.bbc.com/news/business-34578090

-- BBC 2015-10-20

[godden]

Well good luck with that.