Foreign currency licenses revoked for govt, private businesses

Foreign currency licenses revoked for govt, private businesses

The Myanmar Central Bank has announced it will revoke on 19 October licenses allowing private and government businesses from accepting foreign currency, according to officials at the bank.

As trading in foreign currency has increased in Burma, demand for the local kyat has fallen, causing instability in the financial sector, the 13 October statement said.

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The bank has recommended that transactions be carried out in kyat, and encouraged more people to use online payment systems and debit and credit cards to limit cash holdings on premises.

The licenses to trade in foreign currency were originally granted to hotel and travel businesses, duty free stores, and airline and communication companies. The licensees have until 30 November to return the authourisation, the statement added.

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