CNI News
31 October 2024
After the US imposed economic sanctions on the Myanmar Foreign Trade Bank (MFTB), and the Myanmar Investment and Commercial Bank (MICB), it might impose sanctions on the Myanmar Economic Bank (MEB).
However, because the MEB doesn't serve foreign currency transfer, trade and investments as much as the two banks sanctioned do, if the MEB was sanctioned, there would be nothing worse, U Htay Aung Kyi, a banking expert, told CNI News.
" The MICB provides service to commercial investment while MFTB, to foreign trade. They have foreign transition currency. The MEB has no foreign currency transition. But it might have. But to the best of my knowledge, it doesn't have. So, there is no reason the MEB won't be hurt as much as the two other banks. There is nothing worse." he said.
While seeing the Myanma Foreign Trade Bank
In order to limit the flow of foreign currencies into the hands of the SAC, the US imposed sanctions on the MFTB and the MICB.
Payment and tax payment regarding local garment industry, airlines, tourism industry, investment industry, trade have been linked with the MICB and the MFTB.
If the MEB was sanctioned, it would be difficult to transfer state-owned finance. So, the trip of the SAC chairman might intend to avoid these difficulties and contain the issues of local stabilities, an economic commentator told CNI News.
While seeing a port where trading activities are being carried out
" If the MEB was sanctioned, it would be very difficult for the financial transaction of the government. At any rate, the government has to set a foothold to avoid it. The government has to sell reserve foreign currencies for fuel oil, edible oil and medicine. The amount of reserve foreign currency seems to decrease. The SAC chairman might go and negotiate with China about loans and grants." he said.
The MEB, a state-owned commerce and development bank, is providing service to commerce, banking industry, other financial services and local and abroad banking services with its 335 branches.
