On 7 January 2026, the Central Bank of Myanmar (“CBM”) announced Notification No. 2/2026 (“Notification”) to further relax the mandatory conversion requirements applicable to export earnings. The revised ratio is effective retroactively from 1 January 2026.
Under the new Notification, the ratio for compulsory conversion of export proceeds has been adjusted from 25%–75% to 15%–85%, according to the directives in Notification No. 12/2022 of the CBM.
Under the revised frameworks:
- 15% of export earnings must be converted into Myanmar Kyat (MMK) at the CBM reference rate.
- 85% of export earnings may be converted into MMK at the online trading rate.
- This represents a reduction from the previous requirement, which mandated conversion of: 25% at the CBM reference rate; and 75% at the online trading.
Implications for Exporters
- Exporters benefit from greater exposure to market-based exchange rates, potentially improving MMK conversion outcomes.
- The change may enhance foreign currency liquidity management and ease cash flow pressures for export-oriented businesses.
- Companies should review their foreign exchange conversion practices and banking arrangements to ensure compliance with the revised ratios as of 1 January 2026.
For further inquiry, please contact [email protected]
