In its notice, the Central Bank of Myanmar said AD license holder banks can trade foreign currency independently, which was welcomed by businesses saying it would be more helpful for export businesses.
The notice said CBM won’t fix the exchange rate anymore for online trading and AD license holder banks can set on their own depending on a market rate dealt between sellers and buyers.
Transferring the currency that bought from the market to foreign countries needs to do in compliance with specified procedures of the Foreign Exchange Supervisory Committee, it said.
“There may have some speculation in online trading. But the market will be stable if we wait some time. I welcome it as it has good intention. The nature of the market relies on demand and supply. The price will surge if there are greater demand and the price will fall if there are greater supply. If all are blocked, there will be black market,” said an industry businessperson.
He added that this change will be helpful for exporters.
“It will make exporters more convenient. Currently, exporters have been allowed to apply license without showing foreign currency so it has no effect on export sector yet,” said a businessperson who imports goods through border gate.
Until today noon, the market rate is K3530 per dollar, which is only K30 higher than yesterday’s rate.
Htet Oo Maung/ZS
