Moreover, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is reportedly planning to give another special privilege to the exporters as well.
The Ministry of Commerce has been preparing to grant special privileges to the exporters who are earning foreign currencies for the country.
Moreover, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) is reportedly planning to give another special privilege to the exporters as well. The federation is drafting up the privilege programme to benefit the exporters involved in legitimate exports and bolstering exports, the UMFCCI announced on its social page.
The big challenge for exporters for now is monetary policy. Earlier, the exporters had to convert 65 per cent of the hard currency they earned into local currency according to the Central Bank of Myanmar’s reference exchange rate. The CBM eased the foreign currency rules to 50 per cent for exporters, according to the notification released on 13 July. However, they are still grappling with this policy, exporters stressed.
The CBM set the reference exchange rate at K2,100 whereas the US dollar is exchanged at K3,400 in the grey market, showing the large gap between them.
This way, exports are dropping while imports are surpassing exports, according to the Ministry of Commerce’s statistics. There is a trade deficit of over US$817 million in the H1 (1 April to 29 September) of the current financial year 2023-2024.
The ministry met with some businesspersons including those from the UMFCCI and asked for opinions on decreasing exports in early June.
Myanmar’s leading export items are various pulses, sesame, corn, rubber, rice, fisheries, fruits and finished products manufactured on a Cutting, Making and Packing basis.
Myanmar’s foreign trade swelled to $33.97 billion in the last FY 2022-2023, comprising exports worth $16.62 billion and imports worth $17.35 billion. According to the Budget Report for the 2023-2024 FY, Myanmar’s global trade is expected to reach $32.5 billion with exports worth $16.5 billion and imports valued at $16 billion. — NN/EM