On 5 December 2023, the Central Bank of Myanmar (“CBM”) announced, through its letter no. 1/2937 (“Letter 1/2937”), that it will no longer determine the foreign exchange rate on foreign currency transactions made through authorized dealer (“AD”) banks via the foreign exchange online trading system. Consequently, sellers and buyers are now free to determine the […]

Under Notification 15/2023 issued on 13 July 2023 (“Notification 15”), the Central Bank of Myanmar (“CBM”) has lowered the percentage of export earnings that must be converted into Myanmar Kyats (“MMK”) from 65% to 50%. The original percentage of 65% was set on 5August 2022 by the CBM under Notification 36/2022, which required that exporters […]

The Foreign Exchange Supervisory Committee (“FESC”) decided to grant foreign companies an exemption from mandatory forex conversion in its meeting no.78/2022. In this regard, the Central Bank of Myanmar (“CBM”) issued letter no. FE-1/2861 dated 30 December 2022 concerning the resolution of the FESC’s meeting, which instructs the AD licensed banks to comply with such […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 195/2022 to Union Ministers, Regional or State Governments, City Development Committees of Nay Pyi Taw, Yangon and Mandalay on 25 May 2022 directing domestic payments to be made in Myanmar Kyat (“MMK”).   This is a follow-up to Notification no. 12/2022 issued on 3 April 2022 […]

On 3 April 2022, the Central Bank of Myanmar (“CBM”) issued two regulations to be aware of—Notification No. 12/2022 (the “Notification”) to all Myanmar residents (both Myanmar citizens and foreigners) and Directive No. 4/2022 (the “Directive”) to banks holding authorized dealer licenses, instructing them on complying with matters under the Notification. The Notification repeals CBM […]

The Central Bank of Myanmar (“CBM”) issued two notifications on 3 March 2022 providing permission and guidelines for Baht/Kyat direct payments at the Thai-Myanmar Border. They are effective from the above date and apply to designated banks and all exporters and importers involved in the Thai-Myanmar cross-border trade. Purpose In order to promote the local […]

The Central Bank of Myanmar (“CBM”) issued a notification on 20 January 2022 regarding ‘write-off’ of loans given by banks and non-bank financial institutions (“NBFIs”) to related and unrelated parties. The Notification is effective from the above date and is applicable to all banks and NBFIs (collectively, “Financial Institutions” or “FIs”). Loan risk management The […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 43/2021 on 3 November 2021 whereby it has capped the amount that can be paid in cash for the purchase, sale and transfer of basic goods, services or other types of payment at MMK 20 million per transaction. The Notification further states that parties should use […]

The Central Bank of Myanmar (“CBM”) issued Notification No. 46/2021 on 10 November 2021 which amends Clause 35 of the Foreign Exchange Management Regulations as follows: “The holder of a foreign currency trading licence shall inspect whether the exporters receive export earnings within three months from the date of the shipment of the goods according […]

On 7 September 2021, the Central Bank of Myanmar (“CBM”) issued a letter notifying all banks, financial service companies, and mobile financial service providers about a change to their financial year that will take effect from the 2022-2023 financial year onward. According to the CBM’s letter, the financial year (previously from 1 September to 30 […]

The Central Bank of Myanmar (“CBM”) issued a directive on 15 June 2021 (“Directive”) to Non-banking Financial Institutions (“NBFIs”). The Directive sets out the documents that an NBFI requires to provide to the CBM as part of its application to seek approval for (i) opening or closing a branch office or (ii) relocation of it’s […]

The Financial Regulatory Department (“FRD”) issued a letter on 19 May 2021 which requires licensed microfinance institutions (“MFIs”) to provide one-time information to the Central Bank of Myanmar (“CBM”) regarding the cash amount they expect to withdraw over a one-week period. The format of the report is prescribed in the letter. The letter refers to […]

Below is a brief summary of some of the recent directives and instructions issued by the Central Bank of Myanmar (“CBM”). Minimum Reserve Requirement for banks The CBM issued Directive 2/2021 on 16 February 2021 allowing banks to continue maintaining minimum reserve requirement at 3.5% (of the total MMK deposits made by customers) till 30 […]

The Central Bank of Myanmar (“CBM”) published Directive 1/2021 that came into effect from 26 January 2021. This directive pertains to the establishment, operation and conduct of business by Non-Banking Financial Institutions (the “NBFIs”). In this article we have covered some of the important aspects of this directive. NBFI Registration Certificate Companies willing to engage […]

The Central Bank of Myanmar (“CBM”) has published a number of directives in the year 2020 many of which are aimed at supporting the banking sector in an economy that is going through complexities triggered by the pandemic. We have produced below brief summaries of each of those directives as part of our yearly roundup […]

On 12 March 2020, the Central Bank of Myanmar (“CBM”) issued Directive 1/2020 (the “Directive”) and reduced the maximum interest rates on secured and unsecured loans to 12.5% and 15.5% respectively.This marks a small deviation from Directive 1/2019, issued by CBM last year, when it announced maximum interest rates on secured and unsecured loans of […]

On 15 November 2019, the Central Bank of Myanmar (“CBM”) issued Directive 18/2019 on 15 November 2019 on customer due diligence. The directive sets out guidelines for customer due diligence, and mandates that banks develop an effective framework and practices in order to conduct risk assessments and manage money laundering and terrorism financing risks. Highlights […]

The Central Bank of Myanmar (“CBM”) has recently made changes to the offshore loan criteria that it has published on its website (see https://www.cbm.gov.mm/content/2066). Clearer wording has been added in terms of the differences in requirements for companies holding permits from the Myanmar Investment Commission (“MIC”) and non-MIC companies. Further updates have been made to terms […]

On 7 November 2019 the Central Bank of Myanmar issued announcement confirming that a third round of foreign bank licensing will be initiated and opened to foreign banks with representative offices in Myanmar (the “Announcement”). Pursuant to the Announcement, foreign banks will be able to apply either for a branch or for a subsidiary license, […]

The Central Bank of Myanmar (the “CBM”), by an announcement on 3 May 2019, noted that it does not recognize digital currencies as legal tender in Myanmar (the “Announcement”). The CBM further stated that any persons that engage in transactions involving digital currencies act at their own risk.  The Announcement, which is cautionary in nature, […]