Instructions made to use US dollars for border trade

The Foreign Exchange Supervisory Committee released a statement saying to use only US dollars to trade rice, bean, corn and edible crops at Myanmar’s border trading points on 2 July.
Previously, the authorities allowed Myanmar kyats instead of yuan and baht at China and Thai border trade camps and now they instructed traders to use only US dollars starting this month.
The action aims to harmonize the fixed export prices and trade via the sea route, the statement said.
“We have to trade as per the reference exchange rates of the Central Bank of Myanmar. When we export to Asian countries, we have to deposit the export earnings within 45 days, and within 90 days if we export to other countries,” said U San from the Bayintnaung Wholesale Centre.
Moreover, four offices of the Myanma Economic Bank and private banks were opened at Kokang Self-Administered Zone and Chinshwehaw border with the help of CBM due to the proposals of Chinshwehaw border trade points and chambers of commerce, according to Kunlong-Hopan-Chinshwehaw-Laukkai border trade chambers of commerce.
The offices of the Myanma Economic Bank, Myanma Apex Bank, AYA Bank, KBZ Bank, and United Amara Bank will be established at the Wamgli hotel hall on the Chinshwehaw border and the banking entrepreneurs can make enquiries. The yuan account opening and payment for imports/exports using yuan can be made at these offices on 4 July.
The exporting earnings received from border trade must be deposited at CBM’s reference rate of K1,850 and those who fail to do so will be blacklisted and licences will be revoked.
The dollar was used in border trading previously and the current system is only for the sea route trade payment system. If the CBM grants the needed dollars in full, the business persons can operate their businesses properly, said U San from the wholesale centre. — TWA/GNLM