CNI News

28 December 2023

With a view to settle the crisis of needing foreign currency, the government has directed that 70 percent of export earnings gained from exporting rice, corn, various kinds of bean and pea, must be spent on importing fuel and edible oil. 

So, fuel crisis that is currently taking place could be solved, businessmen are considering.

As fuel and edible oil are important commodities for the country, the policy that allows importing fuel and edible oil by export earnings is a matter that should be carried out, U Thet Zaw, an economic commentator, told CNI News.

" Important commodities are essential. In fact, rather than leaving export earnings alone, the policy of reimporting goods is not unjust because it should be done to replenish the goods needed for the country." he said.

While seeing cargo ships at Thilawa Port

In the same way, 70 percent of the export earnings gained from exporting rubber had been allowed to spend on importing fertilizer reportedly. According to the current export earning policy,  if 70 percent of the exporting earnings gained from exporting rice, bean and corn was spent on importing fuel and edible oil, of the rest 30 percent, 35 percent must be sold at 2,100 kyats per dollar and 65 percent, at the market price.

If corn exporters imported other products without fuel, 65 percent of export earnings could be used, and 35 percent must be exchanged at the rate designated by the Central Bank of Myanmar, U Thant Zin Tun, vice chairman of the Myanmar Corn Industrial Association, told CNI News.

"If you sell 70 percent of the dollars gained from exporting rice or corn, you can sell it to the companies importing fuel or edible oil at the price that is agreed by both sides. You are left with 30 percent. Of 30 percent, 35 percent must be sold to the Central Bank at 2,100 kyats and the remaining 75 percent might be sold at the market price. You can import fuel and edible oil yourself as well with your export earnings." he said.

On the other hand, export earnings gained from exporting goods to the Asian countries must be added to the domestic bank accounts within one month instead of 45 days and if exporting goods to other countries, export earnings must be added to the domestic accounts within two months instead of three months.

Because of the export earning policy that has been changed, demand for foreign currency and fuel shortages can be resolved. However, it was necessary to wait and see the ability to export goods, said traders.