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