Irrawaddy-Apr 6

Strapped for hard currency, the Myanmar junta has moved to seize foreign currencies in the country by ordering that foreign exchange earned by locals must be converted into the local currency at the “official rate” within “one working day.” Financial experts and the business community voiced concern that the order would not only hurt the country’s US dollar-dependent export-import industry, but also worsen inflation, adding to the already severe burden on the people of Myanmar, whose economy has been in a downward spiral since the military coup in February last year. In a notice dated April 3, the junta-controlled Central Bank of Myanmar said foreign currencies must be deposited in accounts at licensed banks and exchanged for the local currency within 24 hours. It said the new directive would also apply to foreign currency that came into the country before April 3. Those who fail to comply would face legal action under the Foreign Exchange Management Law, it said. The central bank’s official exchange rate is currently 1,850 kyats per US dollar. However, the rate is around 2,050 in the market, meaning exporters and foreign currency account holders will be hurt by the new policy. The regime didn’t offer any reason for the order. Read more at: https://www.irrawaddy.com/news/burma/myanmar-regime-orders-that-all-foreign-currency-be-converted-into-kyats.html