Kyat weakened to approximately K3,500 against the greenback at the Over-the-Counter market.
The Kyat-dollar exchange rate was stable at a high of K3,500 in December in the forex market. Meanwhile, the reference exchange rate of the Central Bank of Myanmar is K2,100.
On 5 December, the CBM allowed authorized dealers (private banks) to operate forex exchanges freely as per the market rate determined by the supply and demand market forces.
Additionally, the CBM notified that outward remittance must comply with the rules and regulations of the Foreign Exchange Management Committee.
The dollar gained to around K4,000 on 19 August 2023.
Under Section 9 of the Foreign Exchange Management Law, only those entities holding foreign exchange dealer licences are allowed to deal in foreign currency and traveller’s cheques. Those holding foreign currencies without valid licences and permits will face legal actions under the law, according to the CBM’s notification released on 21 August 2023.
According to Notification 7/2014 dated 30 September 2014 issued by the Central Bank of Myanmar, affirmingly stating that under Clause 15 of the Foreign Exchange Management Law, domestic residents are allowed to keep US$10,000 in a maximum or equivalent amount of foreign currencies for six months. If those foreign currencies that have been unused for over six months have to be exchanged in local currency at the market price through authorized dealers or deposited into bank accounts.
Those illegally holding foreign currencies are to face legal actions under the Foreign Exchange Management Law, the CBM warned again. — NN/EM
