Central bank allows payment in Yuan for fuel import
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Hsu / Myo Gyi (NP News) - Oct 3
The Central Bank of Myanmar made an announcement that the Chinese currency ‘Yuan’ will be allowed in the fuel import sector.
As per the decision made by the Foreign Exchange Supervisory Committee, the swap facilities that are purchased by some fuel companies have been allowed to pay in Yuan; and the upcoming transaction deals of the fuel purchases will also be allowed in Yuan, the CBM said.
For the swap agreements made in USD trade financing, the central bank informed the AD license holders (companies or persons) that sell dollars earned by remittance or 35 percent of export earnings to return swap and to arrange the trade finance based on the liability amount.
Border trade between Myanmar and China had done in direct transactions of kyat-yuan.
The CBM set the forex rate of 2100 kyats per dollar in August and ordered to convert 65 percent of export earnings into kyat and the remaining 35 percent shall be exchanged freely without restrictions.
Also, the remittances of the Myanmar national migrant workers are allowed to use independently without any restriction, the CBM announced.
There are more than seven million licensed vehicles in Myanmar; the SAC declared that two billion USD is expensed for gasoline imports annually.