The recent release of Notification 15/2023 on 13 July 2023 (“Notification 15/2023”) by the Central Bank of Myanmar (“CBM”) brings positive news for exporters. The Central Bank of Myanmar (“CBM”) released a Notification 15/2023 (“Notification 15/2023”) allowing exporters to exchange up to 50% of their export earnings to Myanmar Kyats. The new notification amends Notification 36/2022, issued on 5 August 2022, and required 65% of the export earnings to be converted into Myanmar Kyats.
The variation in the exemption for conversion of foreign currency stems from Notification 12/2022 issued on 3 April 2022 (“Notification 12/2022”). Notification 12/2022 mandated that all foreign currency earned by Myanmar residents should be deposited in authorized dealer banks and converted into Myanmar Kyats within one day of receipt. Notification 15/2023 reflects a relaxation of the previous requirements, allowing exporters to convert a reduced percentage of their export earnings into Myanmar Kyats.
It can be interpreted from the recent Notification 15/2023 that there could be a gradual improvement in the foreign exchange issue and the scarcity of dollars in Myanmar.
The information contained in this legal update is provided for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.