CNI News

22 Nov 2022

The Central Bank of Myanmar has allowed exporters to sell 65 percent of their earnings not only in US dollars but also in Yuan and Baht to the CBM.

Previously, exporters were required to sell US dollars to the CBM even though they exported goods in Yuan and Baht.

Exchange rate gaps between Yuan and Baht against US dollars and MMK against US dollars will be narrowed, Vice Chairman U Thant Zin Tun of Myanmar Corn Entrepreneurs Association told the CNI.

He told the CNI, "We export corn. In the past, we had to sell 65 percent of our earnings and we could keep the rest for one month. However, we were required to sell US dollars to the CBM for out exports. Now, we can sell Yuan and Baht in addition to US dollars to the CBM because we exported corn in Yuan and Baht. In the past, we had to sell US dollars to the CBM. So, we needed to buy US dollars to sell to the CBM because we exported corn in Baht or Yuan. There are exchange rate gaps among currencies. The government has eased restrictions. Now, we can sell Baht or Yuan to CBM if we export corn in those currencies.

Yuan and US$ currencies.

The CBM will accept Yuan and Baht for pulses and beans, oil crops, rubber, fishery products, animals and animal products and exporters are required to apply licenses to export their goods in Yuan and Baht.
As exporters no longer need to pay for exchange rate gaps, they will be able to pay higher prices to farmers for their crops, an exporter told the CNI.

He said, "As we can sell Yuan and Baht to the CBM, we will be able to pay higher prices to farmers within one or two days. We have to buy export crops competitively on the ground. I think we will be able to pay MMK 5 to 10 more per viss of crops."

In the past, border trade to Thailand and China was allowed to carry out in only US dollars but Yuan-Kyat payments have been allowed in border trade with China and traders expected a boom in border trade.