Financial Crime World

Myanmar Government Issues Directives on Foreign Currency Transactions

Stabilizing the Foreign Exchange Rate and Efficient Use of Foreign Currency

The Central Bank of Myanmar (CBM) has issued a series of directives aimed at stabilizing the foreign exchange rate and efficiently using foreign currency for economic development. These measures are intended to prevent irregularities in foreign exchange transactions.

Requirements for Converting Foreign Currency into Myanmar Kyats

According to Notification 12/2022, released on April 3, locals who receive foreign currency from abroad must convert it into Myanmar Kyats within one working day and deposit it in a foreign currency account opened with an Authorized Dealer (AD) licensed bank. All foreign currency transactions must be carried out through AD licensed banks with the permission of the Foreign Exchange Supervisory Committee.

Conversion Rate and Account Requirements

Directive 4/2022 states that all foreign currency coming from abroad into accounts with AD banks of persons residing in the country must be converted to Myanmar Kyats within one day and transferred to a Myanmar Kyat account opened by the recipient. The conversion rate is set at USD 1 = MMK 1,850.

Foreign Exchange Supervisory Committee

The CBM has established the Foreign Exchange Supervisory Committee to oversee foreign exchange transactions in domestic and foreign investment activities, manufacturing businesses, export/import businesses, and services sector including education and health. The committee will review and permit the use of foreign currency for various purposes such as:

  • Importing machinery required for investment activities
  • Essential goods
  • Medical treatment
  • Educational trips
  • Religious trips
  • Social reasons

However, it will only allow the transfer of foreign currency to a destination abroad with its approval starting from April 4.

Treatment of Foreign Currency in Existing Accounts

Foreign currency in accounts opened with AD banks before April 3 must also be treated according to these directives.

Rationale Behind the Directives

The CBM has emphasized that these measures are aimed at stabilizing the foreign exchange rate and efficiently using foreign currency for economic development, while also preventing irregularities in foreign exchange transactions.