Foreign currency exchange is growing more difficult in Myanmar.
The Central Bank of Myanmar (CBM) recently announced that it had revoked the foreign exchange money changer licenses issued to 13 companies.
The Military Council ordered the people to buy foreign currencies officially but the dollar trading became difficult as they closed many money changer counters in recent days.
An export import merchant said that they could not buy foreign currencies from these official money changer counters freely and then they had to rely on the open market only. He said they were facing difficulty in buying dollars, noting the foreign currency black market was growing in the country.
The CBM under the control of the Military Council revoked licenses of 45 money changer counters in this year without any wrongdoings by these banks in their attempt to contain the rising US dollar exchange rate but the FOREX market wholesalers and retailers said that the US dollar black market was growing in the country.
The banks which have Authorized Dealers (AD) license and their customers (exporters and importer) can exchange US dollars from online trading as permitted by the CBM and the people who are leaving the country can buy only petty cash (imprest money) in limited amounts from the banks.
The CBM is taking action against speculators in the FOREX market and illegal money changers to contain the rising gold prices and dollar exchange rate. They warned against speculation in the FOREX market.
After the US government put two state-owned banks namely Myanmar Foreign Trade Bank (MFTB) and Myanmar Investment and Commercial Bank (MICB) in their targeted sanctions list, the dollar exchange rate fluctuated wildly in the market and it rose from about 2,800 Kyat to over 3,000 Kyat against the dollar.
In addition, the news of the leading bank in Singapore, United Oversea Bank (UOB, planning to sever contacts with Myanmar-based banks appeared and announced by the UOB Bank and then the US dollar exchange rate soared to about 3,700 Kyat against the dollar.
