Yangon [Myanmar], December 7: The Central Bank of Myanmar (CBM) on Wednesday relaxed its foreign currency conversion rule for exporters and stopped setting exchange rates of foreign currencies for authorized dealers.
The central bank issued a statement with immediate effect, allowing exporters to convert 35 percent of their earnings into kyats at the central bank's exchange rates. The exporters were previously required to compulsorily convert 50 percent of their export earnings.
Additionally, the central bank said on Tuesday that it will not set exchange rates for foreign currencies and will let authorized banks decide forex rates depending on market rate.
The relaxation of forex rules aims to boost the Southeast Asian country's exports and encourage domestic production, Zaw Min Tun, spokesperson of the Information Team of Myanmar's State Administration Council, said on Wednesday.
On Wednesday, the central bank's reference exchange rates stood at 2,100 kyats per U.S. dollar, 2,266.3 kyats per euro, and 293.35 kyats per yuan respectively.
Source: Xinhua