CNI News

4 September 2024

There are discussions about how the State Administration Council (SAC) will make up for the closure of border trade camps among businessmen and economic analysts. 

As the SAC get not only the tax from border trade camps for the country but also foreign currencies, the country loses gaining foreign currencies. 

However, traders are illegally If the border trade activities were conducted after trade camps were built in other places, it would be so difficult; so legal border trade could be restarted only when territorial stability has been carried out first, U Aung Pyit Sone, a businessman, told CNI News.

" Even if a small border trade camp is built, it is necessary to have government departments such as commerce, custom, police force and general administration there. But it's not easy to build such a small border camp if there is no territorial stability. If there is no stability, the country will be tax losses. Only if there is territorial stability, will the border trade be restarted. Illegal trade won't bring any benefits for the country." he said.

While seeing the Muse 105 Mile trade zone

Although Myanmar is earning foreign currencies from imports and exports, because the policies on import and export have been tightened, it is not convenient for importers and exporters.

If the government wanted import and export industries to facilitate, it would need to relax in some parts, an economic analyst told CNI News.

" At present, normal trade is being carried out. If the government wants to conduct the trade quickly, it needs to relax many things especially in export because it can get a lot of foreign currencies on if it can export a lot. 25 percent of export earnings must be exchanged at the price designated up to now. Next, whenever export is conducted, it is necessary to have a license. License is needed for both import and export. But the government wants export to conduct quickly, it should relax things it can." he said.

The SAC has instructed traders to start the barter system between the trading partners to reduce the foreign currency demand, according to traders.

While preparations are being made to export rice

However, the barter system is so out of date that no country uses it anymore, reviewed people.

" In my opinion, it's not easy to use the barter system for the time being. The barter system arose before the currency unit was invented. Because it was difficult to define a unit, a currency system arose. The currency system must center the technique. Then, how will the technique be centered? Ways and means are not convenient in the modern times." said U Htay Aung Kyi, a banking expert.

If the barter system was used, trade would be reduced and because there will be a wide gap between the products that trading partner countries want to import and the products that Myanmar wants to export, it will be difficult. 

At last, the people will suffer the trading difficulties.