Myanmar prohibits the use of foreign currencies for local payments

Naypyi taw: The Central Bank of Myanmar (CBM) has banned the use foreign currency for local payments with the aim of stabilizing the exchange rate in the country.

The bank has asked government agencies to pay only with Myanmar kyat, saying using foreign currency for domestic payments could lead to increased demand for dollars and cause exchange rate instability, the agency reports. press Xinhua.

The move came after the CBM discovered that some government agencies and organizations were using foreign currencies for local payments, the central bank said in a statement.

“Some government agencies were using and accepting foreign currency in some of their business, including land leasing, capital investment for insurance business and joint venture income,” said Win Thaw, the bank’s deputy governor. center, quoted in the press release.

He added that the CBM discovered that the US dollar was also used in some hotels, restaurants, international schools, souvenir shops and property rentals to foreigners in the country.

It has already sent the notification to all ministries, regional and state governments and municipal committees of Nay Pyi Taw, Yangon and Mandalay cities to use only kyat for buying and selling goods and services and payments in the country, the central bank said.

Last month, the CBM ordered all local holders of foreign currencies, except for certain foreign organizations and traders who were later exempted, to compulsorily convert them into kyats within one business day. after receiving the foreign currencies.