Businesses lament bank rules on transfers

Businesses lament bank rules on transfers

Photo: Aung Khant/The Myanmar Times

The practice by local banks of only allowing foreign exchange transfers after showing bills of lading is an obstacle for businesses in making trade transactions.

After the amendment of regulations governing the management of foreign exchange transactions in the country, the Central Bank of Myanmar began allowing foreign exchange (forex) transfers by local banks. However, the transfers by local banks are not in line with international practices and this hampers businesses.

As most of the local businesspeople are making payments for trade via Singaporean banks, only these banks are getting the benefits from service charges.

Local banks say that the requirement is based on CBM instructions.

Foreign Exchange Management Law was enacted in in 2012 and amended on December 15, 2015. The amendment states that citizens in and out of the country will have to follow the CBM’s instructions for transporting gold, foreign currency and jewellery in or out of the country.

Source: Myanmar Times

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