Changes to Myanmar’s Exchange Arrangements

(Myanmar Central Bank’s public announcement on today 28 March 2012.)

The Central Bank of Myanmar (CBM) will implement a managed floating exchange rate regime in Myanmar with effect from 1st April 2012. The external value of the national currency, the Myanmar kyat, will from now on be determined by supply and demand conditions in the exchange market.

In line with the new exchange rate regime, Reference Foreign Exchange Rate will be publicized daily by CBM. This arrangement is part of the reform program of the Government of the Republic of the Union of Myanmar for modernizing the economy.

A key part of this program is to unify the various exchange rates and gradually eliminate restrictions on current international payment and transfers abroad. Replacing the official exchange rate, which has been pegged since 1977 at the level of 8.50847 kyats to SDR, with a market-determined exchange rate is the first step toward unifying the various exchange rates and also allow room for the CBM to influence the market exchange rate.

In all these areas, the CBM, domestic and international concerned agencies are working together to ensure that the changes are smooth. For FY 2012/13 Union Budget, provisions of Foreign Exchange Budget for Ministries and State Economic Enterprises have already been incorporated a budgetary exchange rate assumption in line with market exchange rate.

The CBM will provide further detailed information to the public on changes to Myanmar’s exchange arrangements.—Central Bank of Myanmar

CBM's original announcement in Burmese.

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