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Logistics Service Companies Are Now Allowed to Hold Specific Amounts of Foreign Currency

Logistics Service Companies Are Now Allowed to Hold Specific Amounts of Foreign Currency

June 27, 2022

On 2 June 2022 the Ministry of Transport and Communications issued letter no. PaSa-4/ (F.E-1/1)/2022 (709) (“Letter“) in implementation of a circular from the Foreign Exchange Supervisory Committee (“FESC”).

The Letter states that FESC now permits logistics service companies to retain specific amounts of foreign currency in their foreign currency bank accounts in Myanmar. Any foreign currency in excess of such amounts shall be converted to Myanmar Kyat.

The operational sector of such companies and the amounts they will be allowed to retain are shown in the table below:

Company sectorForeign currency equivalent of
Freight forwarding (member of Myanmar International Freight Forwarders Association)USD 300,000 per month
Mercantile marine development (member of Myanmar Mercantile Marine Development Association)USD 2,000,000 per month
International air freight forwarding and ground servicesUSD 100,000 per month

AUTHOR

May is a Burmese lawyer who is working as a legal associate based in our Yangon office. Prior to joining VDB Loi, May was working as a legal associate at Allen & Gledhill (Myanmar) and assisted Singaporean banks and several local banks in their financing transactions.

At VDB Loi, May, as part of the banking and finance team, assists both onshore and offshore lenders as well as foreign and local borrowers with financing transactions, particularly in the drafting of finance documents, conducting due diligence for commercial lenders, drafting corporate approvals, and registering of security documents with government authorities.

May holds an LL.M in international law degree from Yangon University of Distance Education and an LL.B from Dagon University. She also qualified as a higher grade pleader in Myanmar.


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Banking and Finance

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