Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Foreign businesses question Myanmar foreign currency rules

Foreign business groups in Myanmar are raising concerns about new rules requiring businesses and individuals to convert all foreign currency holdings into the local currency

Via AP news wire
Friday 08 April 2022 05:05 EDT
Myanmar Foreign Exchange
Myanmar Foreign Exchange (AP2011)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Foreign business groups in Myanmar have raised concerns about new rules requiring businesses and individuals to convert all foreign currency held in bank accounts into the local currency.

A statement issued Friday by the American Chamber of Commerce and British, French, Australian chambers and similar groups says the rules would lower Myanmar standards of living, stop foreign business activity and foreign investment and cause trade tensions.

“As written, the regulations effectively prevent the use of foreign currency in Myanmar which disconnects Myanmar from the global economy and global financial system," it says.

“Implementation of these measures and the associated lack of clear exemptions for foreign investments creates significant, and for some, insurmountable challenges to all businesses operating in Myanmar," the statement says.

Details of the new rules have yet to be announced. But the central bank said in another notice that they would apply to income from export and other sources such as services, investments, loans for investment and other transactions.

The change appears aimed at helping make up for a shortfall in hard currency following a Feb. 1, 2021 military takeover that ousted the elected government of Aung San Suu Kyi.

The U.S. and other Western countries have imposed targeted sanctions on the military, army-affiliated businesses, military leaders and their families.

The economy has slumped amid widespread public resistance to the takeover and the pandemic, which has in turn kept away tourists whose spending accounts for a large share of the country's foreign exchange earnings.

A deputy governor of Myanmar’s Central Bank was shot at her home on Thursday, days after the tough new regulations were issued. There were conflicting accounts of whether Than Than Swe, appointed to her post after the military seized power, survived the attack.

Myanmar has been ruled by the military for most of the time since it gained independence from the British in 1948. But for about a decade beginning in 2011 the country began a faltering transition toward democracy and its economy began to take off as it opened further to foreign investment.

Scores of foreign businesses have opted to leave since the military seized power last year.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in