CNI News
2 July 2023

There are some discussions among political communities about which social classes are affacted by American sanctions on two state-owned banks, Myanmar Fireign Trade Bank (MFTB) and Myanmar Investment and Commercial Bank (MICB).

The sanctions may impact on the people so much and but not much on the Tatmadaw because it has strongly established its institution, said Dr.Aye Maung, chairman of Arakan Front Party (AFP) to CNI News.

"The sanctions affact the people more than the State Administration Council (SAC). SAC will follow the State Law and Order Restoration Council (SLORC) and the State Peace and Development Council. The time of U Ne Win is different from that of U Than Shwe. U Ne Win led. After their times, as you know, civil war has been long for many reasons. I wonder the civil war has been created to be long or they aren't able to finish the civil war. The Tatmadaw has built everything that it needs. In other words, it has built its institution in a large scale after SLORC. SPDC start openning military engineering university and military medical university. Outstanding students were sent to abroad especially to Russia and China.and building Myanmar Economic Holdings" he said.

The Tatmadaw created Myanmar Economic Holding Ltd and other businesses since before, he said.

the Myanmar Tatmadaw

USA released a statement that it has imposed sanctions on Myanmar's ministry of defense including MFTB and MICB on 21st June 2023. Soon after that, In the local currency market, one dollar rose to 3,800 kyats.American sanctions affect not only the two banks but also the entire people, said U Thiha Paing, Myanmar Economy analyst to CNI.

When the sanctions are imposed, exact targets should be designated. Because the foreign currency has been controlled, it is affecting the whole country. But there might be some exits, he added.

Because the two state-owned banks have been sanctioned, the Tatmadaw's arms perchasing channels might be affected, said some people. On the other hand, the Tatmadaw had been internationally sanctioned in the past and it might have some exits, said some people in the political community.