Summary of Recent Notifications and Directives Issued by the Central Bank of MyanmarApril 5, 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 Notification No. 35/2021 dated 3 October 2021.
We provide a brief summary below.
Repatriation of foreign currency from foreign countries and conversion into Myanmar Kyat
Effective from 4 April 2022, all proceeds received by Myanmar residents from foreign countries (from both trading and non-trading activities) must now be repatriated into Myanmar and foreign currency accounts must be opened at authorized dealer banks. Such proceeds received must be converted into Myanmar Kyat (“MMK”) and deposited into the MMK bank account of the Myanmar resident within one business day from the date on which such proceeds were deposited into the foreign currency account (except for any exemptions, which will be separately determined and announced).
In addition, any foreign currency that has been repatriated into Myanmar and deposited into a foreign currency account prior to 4 April 2022 is also required to be handled in the same manner.
Transfer of foreign currency to foreign countries
The transfer of foreign currency to foreign countries must now be conducted through authorized dealer banks and requires the approval of the Foreign Exchange Regulatory Committee of the Republic of the Union of Myanmar (the details of which will be provided later by directive).
Foreign currency exchange rate
The Directive sets the MMK to US$ exchange rate for conversion at MMK1,850 per US$1. The exchange rates for other foreign currencies have also been set based on the MMK1,850 to US$1 rate as per a listing attached to the Directive. Any changes to these rates will be set by directive of the CBM.
Clarifications on these matters will be forthcoming from the CBM, we will keep you updated as further information becomes available.