The embassies of the two countries have demanded the exemption of Singapore and Japanese companies due to difficulties with the setting of 1,850 kyat per dollar, according to a statement. According to a statement from the embassies of these countries, the central bank’s directive to exchange dollars and kyats within a working day if there is foreign currency inflows is causing difficulties. Singaporean investment companies operating in Myanmar are facing challenges due to central bank directives and are struggling to stay afloat.
As a result, the Singapore embassy has demanded that all Singaporean companies be exempt from the central bank’s directive. From October 2021 to February 2022, a total of more than $ 530 million in foreign investment came in, accounting for more than 52% of the total investment from Singapore, valued at over US $ 277 million. The Japanese embassy said in a statement that it was “very difficult” for Japanese businesses to invest in Myanmar, and called on Japanese companies and legal entities to be exempt from the central bank’s policy in order to maintain goodwill between the two countries. The official bodies of the Japanese government in Myanmar are the Embassy of Japan in Myanmar; JICA; Jetro and the Thilawa SEZ are home to several billion-dollar companies.
Foreign exchange inflows must be converted into Myanmar kyats within one day from the date of entry and the exchange rate is 1,850 kyats per dollar, according to Directive No. 4/2022 dated 3 April 2022. According to Notification No. 12/2022 issued by the Central Bank of Myanmar on April 3, 2022, foreign exchange licensed (AD) licensed banks are required to comply with the following: (A) Notification No. (12/2022) of Notification No. 12/2022 dated (April 20, 2022) of the Central Bank of Myanmar (Ref. 3) Except for the exemption cases, the foreign currency accounts opened at AD licensed banks shall be exchanged for Myanmar kyats within one working day from the date of entry and shall be credited to the kyats opened by the recipient. The conversion from foreign currency to Myanmar kyat must be exchanged for 1850 Kyats per dollar. For other currencies, the central bank has set the exchange rate at 1,850 kyat per dollar.
Source: Daily Eleven