The Central Bank of Myanmar Cancels Foreign Exchange Licenses. But Not Really.


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The cancellation of the “Foreign Acceptor and Holder Licenses” by the Central Bank has resulted in a deluge of questions by concerned businesses. Actually the impact on mainstream foreign investors is rather limited. Nevertheless, this episode shows the need for a comprehensive and clear regulation on the compulsory use of Myanmar Kyat in domestic transactions.

Highlights of this note

  • What is the CBM trying to achieve and how?
  • What is this “Foreign Exchange Acceptor and Holder Licence” which has been cancelled?
  • Why all of this does not matter (much)
  • Who is really affected?
  • Are foreign invested companies losing their right to receive and collect foreign currency?
  • The real problem
  • Why can’t we just apply Letter 904 and start using MMK from now on?
  • How do we fix this?
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