The recent release of Notification 15/2023 on 13 July 2023 (“Notification 15/2023”) by the Central Bank of Myanmar (“CBM”) brings positive news for exporters. The Central Bank of Myanmar (“CBM”) released a Notification 15/2023 (“Notification 15/2023”) allowing exporters to exchange up to 50% of their export earnings to Myanmar Kyats. The new notification amends Notification 36/2022, issued on 5 August 2022, and required 65% of the export earnings to be converted into Myanmar Kyats.
The variation in the exemption for conversion of foreign currency stems from Notification 12/2022 issued on 3 April 2022 (“Notification 12/2022”). Notification 12/2022 mandated that all foreign currency earned by Myanmar residents should be deposited in authorized dealer banks and converted into Myanmar Kyats within one day of receipt. Notification 15/2023 reflects a relaxation of the previous requirements, allowing exporters to convert a reduced percentage of their export earnings into Myanmar Kyats.
It can be interpreted from the recent Notification 15/2023 that there could be a gradual improvement in the foreign exchange issue and the scarcity of dollars in Myanmar.
For further information regarding the regulations, please contact Nishant Choudhary, Partner and Managing Director, Myanmar | Head of Regional Dispute Resolution Cambodia, Myanmar, [email protected]