Central Bank relax forex rate to floating

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NP News – Dec 6

The Central Bank of Myanmar (CBM) announced on 5 December that it won’t set the foreign exchange rate and the authorized dealers will be allowed freely to operate in accordance with demand and supply in the market.

The CBM notified to the authorized dealers that the CBM won’t involve and set the forex rate for the foreign exchange currency trade.

The CBM also notified that transferring foreign currency to abroad will have to follow the procedures laid down by the Foreign Exchange Supervisory Committee.

A businessman remarked, “It is expected that there will be more exports upon allowing the floating exchange market by the CBM. We expect more dollars will be entering if there is more export. Many crisis in domestic are expected to be resolved then.”

Many businessmen take that more dollars that are kept intentionally by those greedy businessmen for personal profit will be flowing into the market. However, detailed management patterns of the CBM still to be observed, they said.

Previously, although the CBM sets the forex rate 2100 MMK, it was trading in the market ranging around 3000 MMK.

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