A meeting on issues pertaining to foreign trade payments was held at the Central Bank of Myanmar-CBM on 19 August and the CBM Governor Daw Than Than Swe attended the meeting and delivered remarks covering the following points –
- In a proactive move to curb soaring commodity prices, Myanmar is actively engaging in foreign currency trading within legal markets.
- This initiative is accompanied by a strategic implementation of interest rate and monetary policies, aligned with the nation’s macroeconomic landscape, as highlighted by Central Bank of Myanmar Governor Daw Than Than Swe.
- Intending to streamline financial transactions and cater to the market’s foreign currency demand, the Central Bank of Myanmar has taken several steps to ensure exchange rate stability. These measures encompass the sale of US dollars to entities involved in motor oil, edible oil, and import sectors through private banks. Furthermore, the institution is harnessing the Back-to-Back SWAP Facility to meet the escalating demand for US dollars.
- In a bid to enhance accessibility for importers seeking foreign currency, the CBM Governor underscored the introduction of an online trading system on 22 June 2023 and criteria have been established for fair online trade.
- She stressed the need for vigilance against the influence of online and social media narratives that might drive unwarranted price hikes and illegal activities, which are not grounded in market fundamentals and data.
- The sale of US dollars to people who are going to leave for foreign countries for their minority uses is now conducted at the airport counters depending on the remaining amount of money in AD-licensed banks.
- There are permits for using foreign currencies in accordance with the Foreign Exchange Management Law and relevant rules and regulations, and people can hold an allowable amount of the currency during the permitted period, and those who fail to follow rules will be taken legal action.
Subsequently, the delegates at the meeting discussed that price surges due to illicit trading practices and smuggling, and therefore, law enforcement must take necessary measures against smuggling, and eradicate illegal trade; measures are being taken to import required raw materials for the national economy from abroad so as to ensure no shortage of fuel oil; and the need not to sell the foreign currencies in illegal exchange rate under the name of importer using the online market rate.
Source: Myawady Daily Newspaper (20-8-2023)
- In a proactive move to curb soaring commodity prices, Myanmar is actively engaging in foreign currency trading within legal markets.
- She stressed the need for vigilance against the influence of online and social media narratives that might drive unwarranted price hikes and illegal activities, which are not grounded in market fundamentals and data.